2008 thread has returned

[240 is Back]

Obama May Levy $15 Billion Tax on Oil Company Profit...

May 1 (Bloomberg) -- Democratic presidential candidate Barack Obama's proposal for a windfall profits tax on oil companies could cost $15 billion a year at last year's profit levels, a campaign adviser said.

The plan would target profit from the biggest oil companies by taxing each barrel of oil costing more than $80, according to a fact sheet on the proposal. The tax would help pay for a $1,000 tax cut for working families, an expansion of the earned- income tax credit and assistance for people who can't afford their energy bills.

``The profits right now are so remarkable that one could trim them 10 percent or so, which would turn out to be somewhere in the $15 billion range,'' said Jason Grumet, an adviser to the Obama campaign.

Obama's plan may be three times larger than the $50 billion, 10-year plan contemplated by his Democratic rival, New York Senator Hillary Clinton. Republican candidate John McCain, an Arizona senator, has no plan to raise oil and gas industry taxes, said his economic adviser, Douglas Holtz-Eakin.

Oil companies would still have ample reason to ``continue to pursue production, while at the same time providing relief to consumers,'' Grumet said.

A flurry of energy proposals from presidential candidates and lawmakers has come after crude oil futures prices reached $119.93 a barrel on April 28. Retail gasoline prices hit a record $3.603 a gallon this week, according to the U.S. Energy Department.

[Bindare_Dundat]

 Once prices get to the point where  people start really getting pissed off, we'll switch to something else, the unfortunate thing is humans need to feel pain, in this case financial, to actually have an incentive to see these alternate fuel sources see the light of day.

[Tre]

Does he believe that they will not pass the cost of that 'tax' on to consumers? 

Perhaps someone should explain to Obama what the 'good ol' boys network' is.

[paul84]

Does he believe that they will not pass the cost of that 'tax' on to consumers? 

Perhaps someone should explain to Obama what the 'good ol' boys network' is.

That's exactly what I thought while reading that.  Does Obama really think they'll just eat the taxes?  They'll work on the same margin and just bump the price to cover the taxes. 

[calmus]

Big Oil built this city on rock and roll. 

There's a simple way of making it so they can't pass it on to customers.

Make it a graduate tax. 7 bil profit/quarter, you pay 35% , 9 bil/quarter, you pay 40%.  Granted, most of them will start spending on "R&D," but you have investors/shareholders to keep them accountable on that count.  Stock options won't be worth a lot to executives if they try to cheat.

[Camel Jockey]

I don't understand this beef with the oil companies... They still pay more in europe and other parts of the world.

[Tre]

I don't understand this beef with the oil companies... They still pay more in europe and other parts of the world.

The beef is simple:

They work in collusion with auto manufacturers and select businessmen and politicians to keep fuel efficiency low in automobile engines in order to keep our levels of dependency high. 

[Fury]

Maybe these prices are needed to finally force Americans to start weening themselves off their massive dependence on oil. Everyone bitches about it but no one's willing to ride a bike to work.

[Tre]

Maybe these prices are needed to finally force Americans to start weening themselves off their massive dependence on oil. Everyone bitches about it but no one's willing to ride a bike to work.

No, sir - do you actually think any of the decision-makers in the U.S. want people biking to work?  Why do you think they build all the houses out in the suburbs where the jobs are not?  C'mon man, you've got to do better than that.

[calmus]

No, sir - do you actually think any of the decision-makers in the U.S. want people biking to work?  Why do you think they build all the houses out in the suburbs where the jobs are not?  C'mon man, you've got to do better than that.

Quit getting all Jeremiah Wright on us.  The suburbanization of America happened in a different time.  Now we have to adapt to our new reality.

[Fury]

No, sir - do you actually think any of the decision-makers in the U.S. want people biking to work?  Why do you think they build all the houses out in the suburbs where the jobs are not?  C'mon man, you've got to do better than that.

Why do people who live in the cities still own multiple cars? Give it up. Start fucking walking. I see kids on my campus that can't even walk a flight of stairs without having to take an elevator nor are they capable of walking 200 feet down the street to a dining hall. You're telling me these people really need to be driving 24/7? Nope.

Also, put the SUVs and other gas guzzlers to bed. I can understand if you need a truck for hard labor and what not, but soccer mom's driving Tahoe's around that get 8 miles to the gallon aren't exactly worthy of sympathy to me.

[Brixtonbulldog]

Why do people who live in the cities still own multiple cars? Give it up. Start fucking walking. I see kids on my campus that can't even walk a flight of stairs without having to take an elevator nor are they capable of walking 200 feet down the street to a dining hall. You're telling me these people really need to be driving 24/7? Nope.

Also, put the SUVs and other gas guzzlers to bed. I can understand if you need a truck for hard labor and what not, but soccer mom's driving Tahoe's around that get 8 miles to the gallon aren't exactly worthy of sympathy to me.

So what.. if they wanna pay the gas it's not anyone elses place to dictate what they drive. 

[Hugo Chavez]

Once prices get to the point where  people start really getting pissed off, we'll switch to something else, the unfortunate thing is humans need to feel pain, in this case financial, to actually have an incentive to see these alternate fuel sources see the light of day.

Isn't that sick... They respond to fear and pain   NO wonder elite psycho bastards treat us the way they do... We really are fracking sheep.

[JBGRAY]

Personal transportation is only a small part of the problem.....a problem that can be gotten around such as taking a bus, carpooling, riding a bike, walking, and using other modes of public transportation.  Sure, it may be a lot more difficult for some than others, but a solution can usually be had.

What greatly worries me is shipping.  Fleets of trucks use fuel too.....fleets that ship food, goods, and services.  Even if you ride a bike, you will still be paying through the nose due to rising fuel costs and ethanol production when you go grocery shopping.  The airliners are now flying their planes a bit slower in an attempt to conserve fuel. 

Before people start going off on record profits and increased taxes levied on oil companies, it is apparent that our government is not able to effectively spend it's tax revenues.....the government is spending $25k per $21.6 it takes in from the average working family, a formula that cannot work in the long term.  Despite the accusations of Big Oil being evil and existing to rip off the little guy, remember that it too employs thousands of people, produces, explores, ships, digs, and sells.....something the government does not.  All the government does is produce red tape.  Make the government spend tax money wisely and efficiently before going after Big Oil.

[calmus]

Personal transportation is only a small part of the problem.....

How about you look up your stats, champ? Personal transportation is quite a large part of the problem.

There's a reason people want EPA to be more strict with car manufacturers.

[calmus]

enjoy... "a small part of the problem"

I learned from 240 that people on getbig only get it if you post a pic

[Dos Equis]

Once prices get to the point where  people start really getting pissed off, we'll switch to something else, the unfortunate thing is humans need to feel pain, in this case financial, to actually have an incentive to see these alternate fuel sources see the light of day.

You don't think people are already pretty mad?  I start talking to myself every time I fill up. 

[Hedgehog]

Does he believe that they will not pass the cost of that 'tax' on to consumers? 

Perhaps someone should explain to Obama what the 'good ol' boys network' is.

If the tax is high on gas, the public will look for alternatives, even public transportation, et al.

And the profits of Big Oil will go down.

The supporters of the Big Oil argues that there should be no tax on gas.

But why not let gas pay for the environmental damage it causes.

I never believed that a country should be run by a bunch of CEO's.

So I welcome any initiative to take on the TNC's.

[calmus]

If the tax is high on gas, the public will look for alternatives, even public transportation, et al.

If the tax is high on gas, our structuring narrative that the Arabs and Chavez and Mexico and Russia are fucking us will be done.  So that's not going to happen.

[w8tlftr]

So what.. if they wanna pay the gas it's not anyone elses place to dictate what they drive. 

People have the right the choose what they want to drive.

However, if a person chooses to drive a tank that gets 8 mpg then they forfeit the right to bitch and complain about gas prices.

[Tre]

Quit getting all Jeremiah Wright on us.  The suburbanization of America happened in a different time.  Now we have to adapt to our new reality.

When was the last decade that the U.S. did *not* have an entirely oil-based infrastructure and economy?

http://www.bts.gov/publications/national_transportation_statistics/html/table_04_23.html

Look at the bottom part of that graph and you'll see that there's been almost no increase in fuel efficiency in the last 20 years.

[shootfighter1]

We need to drill in Alaska to temporarily increase our own supply (with appropriate environmental restrictions).  The massive reserves in Alaska (and possibly a few other areas) would give us many years to work to the ultimate goal of a more economical and bio-friendly fuel.  This is the best short-term solution.  With the $ we would save by increasing our own supply, we would also put some increased funds into biofuel research & development.
I am a fan of protecting our planet but there are areas that are oil rich where we can drill right now which would vastly ease the financial crisis and reduce our dependence on middle eastern oil.  We won't be using oil forever and this would be a temporary solution that buys us time.

Oil prices are hard on everyone but the truckers are getting killed (which affects all business and food)

[Decker]

Quit getting all Jeremiah Wright on us.  The suburbanization of America happened in a different time.  Now we have to adapt to our new reality.

It's a fact of history that, back in 30s-40s, US automakers conspired to kill light rail across the nation.  And they did a pretty damn good job of it.

Over the past 20+ years, the creation of SUVs instead of smaller more efficient cars showed me that we need a managed free market.

[OzmO]

It's a fact of history that, back in 30s-40s, US automakers conspired to kill light rail across the nation.  And they did a pretty damn good job of it.

Over the past 20+ years, the creation of SUVs instead of smaller more efficient cars showed me that we need a managed free market.

Yeah, didn't many of them even buy them and dismantle them?

[War-Horse]

It's a fact of history that, back in 30s-40s, US automakers conspired to kill light rail across the nation.  And they did a pretty damn good job of it.

Over the past 20+ years, the creation of SUVs instead of smaller more efficient cars showed me that we need a managed free market.

thats a good way to put it.   We need at least some guidlines for the betterment of the country...