Obama May Levy $15 Billion Tax on Oil Company Profit

Source: 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.



Read more: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aP_1wrIyt1Nc

Socialism for the poor.

Much of it goes to the private Iraqi militias we are paying not to fight.

And don't forget KBR Halliburton and Bechtel, Black Water and their respective air forces

They can afford it and this will give much needed money to begin to address the falling down infrastructure.

and we are getting flushed

making x amount of profit, no matter the industry?

This would seem the next logical step.

Change!

or they will cry and stomp their feet until they get more tax breaks...

And they should start with the law firms. Talk about windfall profit....

before the gov't steps in and takes the rest?

subsidies we give these companies for a start?

That's big time corporate welfare that I think you'll have to agree is unnecessary for these "infant industries" to protect them from "furrin" competition.

Right?

is what will the corporations do to make up that lost revenue stream? That is a lot of money!

What might happen are job layoffs as well as an increase at the pump to recover that money.

You don't think the CEO's are going to give up their salaries, do you?

That's plenty of profit.

motive should not be the rationing agent, since people do not have very much control over whether they become ill or whether they will be cold.

NATIONALIZE the oil industry!

we will turn the nations fuel systems over to the likes of FEMA.

but i do like the giving the money to energy assistance..

Otherwise, when peak oil really hits us then we are totally screwed because we won't have the resources we need if we've already obligated it.

My thinking is it should be used as a tax credit for those who want to install solar and wind power, or to give out loans for this purpose.

Then we cut down oil usage, prices should be somewhat relieved, and people are happy.

There goes all the tax revenue.

rate? One of the greatest periods of American prosperity.

Then price becomes unimportant.

for a few years while they have their great war to defend civilization itself.

Or maybe we should make them.

Put a cap on CEO's salaries. Workers, if lucky, get a 2-3% increase a year and the CEO's are making MILLIONS/year. They should be jailed for grand theft!
Enough of the concentration of wealth to the top 2%!

Still gives too much wiggle room for later. Said to appease potential voters, but gives him the option to *discuss* the tax and potentially drop it for *gag* bipartisan agreements* *gag* later on.

:shrug:

It's politically expedient to talk about it right now, but I'll give credit when it's earned.

...for those that claim that Big Oil will simply move their corporate headquarters off-shore in order to avoid the tax on profits, the answer is a process that requires that companies that sell their products in the US will have to pay for the privilege. Some people may call that tariffs, but the fact is US corporations would be subject to them as well. Further, officials of those companies operating out of middle east, or Bermuda, or Jamaica, or someplace, would have make a choice as to what country they call home - in other words, do they want to retain their US Citizenship or not?

Fact is these 'global' corporations have been screwing the US out of corporate income taxes for decades - hell even those that 'incorporate' in Delaware do so just to avoid state corporate taxes where they sell their goods and services, and the government has too-long allowed it to happen.

We all know these bastards are manipulating the supply and price of gas at the pump and laughing at politicians who think they can do anything about it...lets 'effin' try a little nationalization of their greedy asses and see just how quickly they, as well as other industries, get the message that 'greed ain't necessarily good', and if your company is judged not to be operating in the national interest then there will be a price to pay. That may be socialism to some, but every now and then a little reining in is necessary to show the assholes that you mean business.

....lets 'effin' try a little nationalization of their greedy asses and see just how quickly they, as well as other industries, get the message that 'greed ain't necessarily good', and if your company is judged not to be operating in the national interest then there will be a price to pay.

Hell will freeze over before any of these corprat politicians running for president will nationalize the oil companies. They won't even give us single payer health care. Think they will go up against their corprat overlords that are their gravy train? :silly:

I'm done with giving these conglomerates any benefit of the doubt that they will ever be fair, transparent and honorable businesses. They can go the way of the dinosaur as far as I'm concerned.

And since oil is fought over with our men and women (IRAQ), shouldn't it too be nationalized as a NATIONAL SECURITY ISSUE?

FEMA working in his country. That is who will assume the responsibility for managing the National Oil Industy.

But not far enough! Tax them into the ground! Liquidate their asses and use the money to fix the country and get us off oil hahahaha! GOBAMA :bounce:

One Hundred Million Dollars a Day (NET PROFIT). They showed a Net Profit last quarter of 11 billion dollars. That relates to One Hundred and Ten Million a DAY.. Day in and day out, week after week; month after month; year after year.....10% wouldn't hurt them even a tiny bit......

Also why the Oil companies will do everything possible to keep that from happening.

after reading this story. he will get no support from them.

Though I imagine they already are.

On yesterday's show, Thom Hartmann was talking about seeing at Chris Matthews interview with Howard Dean from the 2004 race in which Dean made some disparaging remarks about television networks (I don't recall what Hartmann claimed Dean said). Hartmann said at that point, he turned to his (Hartmann's) wife and remarked that Dean's campaign will no longer be the sweetheart story of the media. Hartmann said that the very next day, corporate media started going after Dean.

Sometimes, you just keep quiet until you have the job.

;)

it appears that any real change is on its way in how the Military-Industrial-Congressional-Media Complex operates. They are probably doing it as I type, if they have not already done so.

See Oliver Stone's "JFK" for more on that topic. The past is prologue. And Obama has more courage in the tip of his little finger than I have in my entire body.

but they will likely bankroll those willing to try and swift boat him more than what's already been done.

... wouldn't the corporations just pass the cost on to consumers? Extra taxes, fines, whatever ... they just pass it on.

I would rather see ...

1 - Some corporate charters revoked (not just the oil companies ... there are a few manufacturers out there with horrible worker health and environmental records who get off with fines);

2 - Tax breaks and incentives for consumers who invest in effective alternatives for use (change consumer behavior, thereby reducing oil need)

3 - Government-funded research into alternatives and renewables ... too much research in this country is controlled by big business, esp. at research universities who once conducted tax payer-funded research for the public good. Cut corporate-sponsored research at R-1 universities by dwarfing it with tax payer funds.

4 - Some serious investigations into how oil companies are operated (which one would think could lead to number one, above)

Actually, other than #1, all of the things you've mentioned are at least similar to ideas BOTH Senator Clinton and Senator Obama have already proposed. Both candidates have proposed tax credits for companies who invest in clean energy (Obama's is called "cap & trade"), but I think taking it to a consumer level is a good idea too.

Both candidates are pushing Federal investment in renewable energy, and both candidates are on the record as being in favor of opening DOJ investigations into price fixing by the oil companies.

Just so's ya know...

:)

They're stuck with their current price, which even if (and I'm sure it is) it is manipulated, is all they can do.

Edited for spelling. Obvious I teach eco, not English, eh?

Goddamn it..that's playing right into Neocon hands! The Democratic base is already mobilized. We don't need any more encouragement. Drop this bomb after January, 2009.

Hang on

Better yet, don't say a word until AFTER it's signed into law!

Watch Obama supporters now change their mind.

Maybe we should use that windfall profits tax to replace the retail sales tax! Hey what a great idea! It's sure a good thing that that smart Obama has these great ideas! It'd help consumers and bring in revenue for roads and alternative energy R&D!

Exxon Mobil made that much the last quarter.

but if obama were to implement that, the very next day he'll have a "heart attack" or a "stroke" or a "plane crash" or be victim to a "terrorist bomber", the list goes on

What a great way to cut gas prices! Raise taxes! Hey, let's cut the price of milk and eggs by raising taxes on them! Woo hoo! Does corn cost too much? Raise taxes on corn! Is bread getting pricey? Raise taxes on bread! Are people not making enough at their jobs? Raise taxes on income! 


..........enough of the corporate energy distractions.

www.energystate.org

I'm sure there is a stipulation for "Not passing this tax on to the consumer"

/sarc

..but for those that do, this idea will likely just wind up driving prices up further.

And as the costs go still further up, the next logical step is usually to try to freeze prices. Price controls result in rationing and scarcity.

Corporations have a business model and generally answer to shareholders, they don't "eat" additional costs. They adjust.

A windfall profits tax would just mean oil companies would either raise prices, freeze hiring, cut staff, etc, etc. They are not going to just absorb the cost.

As far as I am concerned the price of fuel going up is a good thing. It's tough on people I know, but high fuel bills result in people buying fuel efficient vehicles and actually forces people to conserve which most people avoid doing unless necessary.

Imajika

How in HELL does this work, people? The people who pull the oil out of the ground and pump it into supertankers, and the commodities speculators, are the ones who set the price of oil. Fining them for paying more than Barack Obama wants them to is the height of idiocy.

I have a wonderful idea: Why don't we cut the price of gas by ending the fucking war that enraged the Arabs into charging over $100 for a barrel of crude?

and south of our border..If anything, the price of oil might make the Canadian shale more economical to extract....Same goes for the shale in Colorado.

?
The US also shares a "north slope" border next to the Alaskan oil fields along the Canadian border. Not to mention that Russia is wanting to claim their own slice of Arctic wilderness oil.



The Arctic oil boom is so on.
The shale extractions should be picking it up a few notches and get MSM exposure.
I'll bet that exposure would get played up in OPEC countries enough for them to discourage such competition they will lower the oil price.
Could happen that way. All other scenarios are out the window as far as price fixing goes.

If OPEC gets upset because Bush's minions are building torture chambers and rape rooms, the price of West Texas crude is going up.

domestic oil industry? Simply expropriate the physical assets of the oil companies and compensate shareholders at fair market value.

Where did God ever write that the profit motive be the driving force behind every segment of society, including one so vital to human happiness as energy or health?

Thoughts from a Democratic Socialist and member of Progressive Democrats of Los Angeles.

Why should our men and women die for profit? Who are these investors and who the hell do they suppose they are to abuse our military for their own selfish greedy gains?

would you appoint to assume control of all of the assets of every oil company in this country and manage them for the benefit of the the American citizens.

?????????

They know how to pass the cost onto the customer. That is something the customer has not learned to do. How to pass that cost onto their source of money.

It is so full of meaning.