“The oil companies need to know that there is a limit on how much profit they can take in this economy,” said Sen. Richard Durbin of Illinois, the Senate’s No. 2 Democrat, warning that if energy prices are not reined in “we’re going to find ourselves in a deep recession.”
Newsflash Durbin, taxing the oil companies won’t lower the price the consumer pays, nor will it do anything to make us less dependent on foreign oil.
The Democrats’ energy package also would:
- Make oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.
- Authorize the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.
- Require traders to put up more collateral in the energy futures markets to curb speculation.
Do the Democrats learn from previous mistakes:
The American Petroleum Institute, which represents the major oil companies, has been reminding lawmakers that in the early 1980s, when the government imposed windfall profits taxes on oil companies domestic oil production dropped and imports increased.
But Democrats reject the comparison.
The Senate proposal would impose a 25 percent tax on profits over what would be determined “reasonable” and would allow oil companies to avoid paying the tax if they invest the money in alternative energy projects or refinery expansion.
The tax breaks that would be rescinded, given by Congress over the past five years, are expected to save the five largest oil companies about $17 billion over the next 10 years. The Democratic proposal would funnel the money into tax incentives for renewable energy sources such as wind and solar, and to promote energy efficiency and conservation.
I went to the Exxon Mobile website, and from there, I opened this very informative link. It is a long report but there is some very interesting information for you to review.
Interesting point. I always felt that taxing a company that happens to make a profit is kind of like slapping a child for doing well at school. Tax incentives would be better going to the energy companies and let them make the decision on how to add non-fossil to their portfolio.
The third point actually makes sense. Commodities traders should be more financially more collatoralized. Serious traders already are (for their own protection) and the fly-by-nights which are trying to make a quick profit would be curbed.
I have an hour and half commute so reading material does me good. For any tree-huggers, yes, I do recycle.
NY-David
This is yet another example of ignorance and incompetence in our so-called Leadership, and why we are in trouble. This Ignoranus, Turban Durbin, doesn’t even understand what a college sophomore economics student knows, and that is raising the cost of doing business will not drive prices down.
WHY do we put up with these idiots?
WHY do people keep voting them back into office term after term when all most of them do is display their incompetence, ignorance, arrogance, and elitism
I don’t vote them back in. The stupid sheeple do..
Wrong. You righties are deluding yourselves. The tax was on UNREASONABLE PROFIT. Reasonable profits are fine, but price gouging is WRONG. It WONT raise prices, as that would raise profit and increase the unreasonable profit tax. DUH. And the bill gives the oil companies avenues to avoid the tax by investing a portion of their unreasonable profits in alternative energy, which is the only way we’re going to get out of this situation.
Or do you like being beholden to arabs and hugo chavez?
But you righties will get your comeuppance soon enough. Once we kick bush and his republickan ilk out of office we’re coming after YOU. We will get back the money you money grubbing righties have stolen and put you in your place. many times in a jail cell. have fun enjoying your mcmansions until then ya wingerz!
Oh please… this government has done NOTHING to make sure this sort of crisis never hit our shores. Republicans have squelched every opportunity to create a viable and smart energy policy… Remember Dick Cheney’s closed door, super secret meeting with oil companies to plot out our energy policy? Now you see where that got us… So go ahead, give ALL of our money to the oil companies. They deserve every penny because they have been such stellar corporate citizens and have done so many wonderful things for us all. Of course they deserve a break!
So I see you don’t like dissention on this site. If you say anything against Republicans your comment is taken down! Hooray for democracy! This is why you will lose the next election. People are tired of not being listened to…
As usial the tax and spend liberal demacrooks have a answer to all more taxes DICK DASTARDLY DURBAN wouldnt you like to see him voted right out of office and into the unemployment line selling pencils on the street corner just to pay for his polo club fees>:/:-j
Snowy, I would love to see Turban Durbin, ChapaTraitor, In Cold Blood Murtha, Lips Ears, and Noses Kerry, Jim McDermott, Barbara Boxer, DiFi, Nancy Pelosi, Harry Reid and a whole bunch of RINOs and other cvermin not only thrown out of office, but loaded into a big dumpster and taken out with the rest of the trash.
“Republicans have squelched every opportunity to create a viable and smart energy policy…”
———————–
…which is why they will lose seats in Congress this year.
When Senate Democrats get as close as they possibly can to 60 seats next January, the Republican fillibuster will become ineffective.
People can smell political “death” in the air already…and it’s coming from your side. (!)
To be frank, disension on this site is permitted and widely encouraged as I’m an example. Just be respectful and play nice in Pam’s sandbox.
NY-David
Dick Dirtbag is a lying idiot who hates the troops.
Who determines what is unreasonable profit? Is it a set rate where all companies in any sector will be hit? How about trial lawyers? What is unreasonable profit from class action lawsuits?
The government makes more on a gallon of gas than the oil companies do. What about slashing the gas tax??? Or is that too much sense and honesty for you Democrats?
Actually the gas tax goes toward highway improvement (or at least its supposed to). The fact that a lot of our bridges and tunnels are behind on their inspection and maintence, I’d not want to mess with this. What happened in MN would be just the beginning.
Here’s a start. How about an excise tax on imported oil? Then let the oil companies make their own decisions. Electric companies would be serious about alternatives because oil would become more expensive.
How’s that for “sense and honesty”?
NY-David
But it doesn’t go toward the highways, at least here in MI! You do not ever want to drive on our roads. The oil companies can not touch our U.S. resources, so therefore they really can’t make their own decision!
As for the MN bridge, Ed had some great posts on that story:
Working Theory On Bridge Collapse Is Just That
Bridge Collapse Caused By Design Flaw, Not Maintenance
#4: “Republicans have squelched every opportunity to create a viable and smart energy policy: ”
Pure bullshit. The Republicans have tried to develop more of our own resources, plus advance nuclear power. The DemokRats have blocked it.
All the Democraps have been able to come up with is “tax the oil companies”. They have NO energy policy.
Oh, I forgot: Nancy Pelosi has a plan, at least she announced it a couple of years ago. Do you know where it is, Former Republican? She seems to have misplaced it…
#3 Libs Rule how do you define reasonable profit? What Nancy Pelosi thinks is reasonable? You probably just don’t like Capitalism, do you? You’re more comfortable with Soviet-style Marxism, eh?
PCD #10 beat me to the punch on “unreasonable profit”. Also Libs Rule, how do you suppose, even if they are able to define what a reasonable profit is, they are going to control how the oil companies calculate profit? There are all sorts of accounting things that can be done to affect the bottom line.
The “tax the oil companies” idea is a simplistic supposed fix for people that don’t know better.
And how will that balance supply and demand?
OBAMA IS KNOCKING UP AMERICA! That has been the plan all along, this is devilish dealings and the Dems are at the back of making it look like Bush is the cause of the oil prices going up, and then the ‘BIG LIE’ begins to be believed that OBAMA THE GREAT IS THE ONLY ONE THAT CAN SAVE AMERICA. DEVIDE AND CONQUER IS THE GOAL OF THE DEMS.
I BELIEVE WE ARE GOING TO BEAT THEM AT THEIR OWN GAME, BECAUSE PEOPLE ARE REALLY WISING UP TO THEIR NASTY PLAN. I’M TRUSTING GOD ON THIS ONE, BUT STILL CLINGING TO MY GUN JUST IN CASE. =)) BETTER SAFE THAN SORRY.
Well, with fuel prices going the way they are, I’m waiting to see what the reaction of all of the “ride public transit like we do in the inner city” crowd when food starts costing them a fortune. The farmers won’t be bringing it in to the farmer’s markets either because they won’t be able to afford the gas. They might not even be able to afford the diesel to plant and harvest it. That should make the liberals happy, no more organic spinach.
For that matter, you want to see excess profit and price gouging? Go to Starbucks! $4.00 for a @#$%^& cup of coffee? That’s GOUGING. That’s over $20 per gallon… FOR COFFEE! It doesn’t effect me, I don’t drink coffee. I’m just waiting to see what happens when Starbucks hits $7.50 for a cup of coffee. Watch the liberals whine then. With the way that dairy prices and transportation costs on coffee are going, it probably won’t be long.