I look at the other side of the financial equation and favor to quit giving them tax subsidies for operations. This includes credits and financing various military actions to secure their supplies. As far as taxes go, the going rate for any operation their size is okay.
Windfall taxes on Oil Companies - for it or against it?
This is totally false. There is no way that US oil companies have any control over OPEC. All of the evidence points in the opposite direction.
Heh. Did you see the news today Jim? Looks like Bush is in Saudi Arabia visiting the King, with hat in hand, to beg for more production.
So whats next all you socialists? Free healthcare, high paying jobs, etc.? You can thank the high price of oil due to the declining value of the dollar. The US is insolvent and total financial collpase will be here at the latest by 2010. This summer (september) will be the trigger.
Are you ready for Dieoff??????
Perfect. That gives Bush and the other dicks guiltless money to piss away in their sandbox.
Only it's the American middle class that has suffered. Certainly not the corps and their shareholders.
I am middle class.
I am also a shareholder. Guess what my 401k rides on?
You people here want to cut off your noses to spite your faces.
Geez Burn, sometimes you're a real rude jerk.
Yea, I took a hard hit on one of my retirement accounts a few years ago, I see what you are saying. I believe it was around the Black Monday period. I might point out, that our retirement fund/401k, is surely a concern, but can it compare to a guy making a union wage, paying his mortgage, planning for his children to go to college, who suddenly finds himself working at Walmart for 8 bucks an hour??? You didn't quote the rest of my comment, I was talking about the deregulation that has gone on over the last thirty years, that has been funneling the wealth UPWARD. Toward that tiny pinnacle of the pyramid. The old Trickle Down Theory. What do you think this current "economic stimulus package" is all about? Reagonomics doesn't work. They have sold it to you and yours, but now what are they practicing? In essence, this package is a tax cut for the poor and the middle class. Why? Because they know that when you put more money into the hands of the wide base of the pyramid, they spend it, and it makes for a more vibrant economy. If not, then why are they doing it? Every individual who makes less than 75k per year is getting a check. The more the wide base makes, the more widgets sold, and the more your precious 401k increases.
As far as the oil question, I happen to agree, that if we rescind the Bush tax cuts, it might help. Finding alternative sources seems the only logical long term solution.
I must say that I have strong opinions on this subject. The benefits of a free enterprise system is one of the distinguishing factors between socialism and capitalism. Oil companies have a profit margin of about 8.3% (I recently read) That is not significantly different with the typical American company (7.3%).
Buy oil stocks, use public transportation and stop begging for a socialist society. A windfall tax?? What about the stock holders? Why should they be punished?
The middle class spends money. Allowing them a tax break, makes them buy things....which helps the economy.
The large businesses hire people when they are given perks and incentives. People working, helps the economy as well...........
Socialism means we all drive a new AMC Pacer / Gremlin and have universal healthcare.
(sorry for the sarcasm)
Why have a windfall tax? Who gets to decide how much is 'too much'? What about lottery winners, should they be windfall taxed above and beyond normal income taxes too? What about Big Pharma? They have much higher profit margins. What about that big pay raise at work? Should that get 'winfall' taxed too? What happens if you make more than most people in the same job category?
Winfall tax proposals, is pandering to the populace. No one forces you to buy oil or gasoline. If you don't like the price, don't buy it.
I agree with Indo_Dude!
This depends on more factors than meets the eye. If the record prices are due to forces outside their control or because they are creating excess value, then no there should be no taxes to discourage it. Excessive profits because of value creation or the free market should not be usurped.
However, if the excessive profits come from the oil companies creating artificial shortages and they are supporting laws preventing the competition from joining in, then they should be taxed. And the taxes should be harsh, with the intent of punishing companies that collude to create artificially high prices to pad their high profits.
The oil companies are not alone on this. The drug industry tops the list of industries that deserve this kind of punitive taxes. They do all they can to prevent adequate research on natural medicine, to protect a monopoly on inferior products that more often hurt or kill the patients than make them well. And the industries that are driving up rice prices by creating artificial shortages should well be taxed heavily to punish them for artificially driving up prices. And in the meantime, laws should prevent this kind of collusion by encouraging competition that would come in and undo the artificial shortages.