Senior US Republican says oil tax may be needed

Reuters ^ | 10/28/5

[Crackingham]

A senior Senate Republican said he would consider a windfall profit tax on oil companies to generate funds to help poor Americans pay home heating bills that are expected to be sharply higher this winter. Judd Gregg, chairman of the Senate Budget Committee, said he was concerned that U.S. oil companies were reporting record-high profits when some families will be unable to pay their natural gas and home heating oil bills because of high energy prices. Gregg said he would "pursue options in this area" in coming weeks.

"I believe it is time to take a serious look at reinstituting an excess profit tax on oil companies with the proceeds being put towards the Low Income Home Energy Assistance Program (LIHEAP) and deficit reduction," Gregg said in a statement.

On Thursday, Exxon Mobil reported quarterly profits of $9.9 billion amid other record high energy company earnings. The profit announcements prompted Senate Majority Leader Bill Frist to say he would ask the top executives of major oil companies to testify on why oil prices are so high.

Gregg, who was given high marks as a conservative Republican in 2004 by the American Conservative Union, acknowledged that it was unusual for him to call for a new tax.

"Some might call this a novel approach for me, but I cannot sit back in good conscience while those in our society struggling to heat their homes are being left in the cold by oil companies," he said.

[RWR8189]

Punish businesses that prosper.

That's the logic from Judd Gregg (RINO)

[MNJohnnie]

You can say all you want Gregg. You will never get any tax hike thru the US House.

[RegulatorCountry]

Judd Gregg? Why doesn't he just give his $350 million Powerball lottery winnings to the poor, to help pay their heating bills, instead of advocating tired, old Carter lunacies?

[RWR8189]

Maybe we should set some price controls too Mr. Gregg?

It worked so well in the 70s and 80s...

[BenLurkin]

The oil companies are going to need those profits to bring new wells and refineries on line.

If not oil prices are really going to go through the roof.

You'd think a Republican could understand simple economics.

[ReaganRevolution]

That's right Judd, the oil companies would never pass along a tax increase to the consumers --- doofus.

[RightWhale]

those in our society struggling to heat their homes are being left in the cold by oil companies

Alaska has a program or two to help those with the proper welfare recipient creds to pay for heating their hovels. Should this become a FedGov responsibility? Why not. The states are still alive and twitching now and then.

[Stellar Dendrite]

viva la socialism!

[SmithL]

How very liberal of him.

[Dan from Michigan]

How the hell can you be a republican and back taxes?

[VeniVidiVici]

I'm going to help my grandmother pay her gas bill this winter.

Why does she need Judd Gregg to do it for her?

[Flint]

Well just where does the good Senator think the oil companies will get the money to pay his tax?

The whole damn Washington, DC needs to be cleaned out and we need to start all over again. Go back to the original Constitution, trash all the crap that has been tacked on it since 1783 and start again, with some people with brains in their head running things.

[arjay]

How about letting them build refineries with the profits?

[traviskicks]

"That's right Judd, the oil companies would never pass along a tax increase to the consumers --- doofus."
---

RINO Judd is following in the footsteps of the Hillary Clinton Proposal, but you are exactly right, it is a tax on the US consumer. Accomplishing the opposite of government's intentions it will raise, not lower, oil prices!

Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.

[sinkspur]

This is just grandstanding. Gregg knows very well that the House would never approve this, even if, by some chance, the Senate did.

[MadIvan]

How the hell can you be a republican and back taxes?

The name Nelson Rockefeller should ring bells. Alarm bells, but bells nonetheless.

Regards, Ivan

[MamaB]

What is wrong with these people? I was just thinking about this and wondered if they would support a tax on other profit making companies.

[Crawdad]

It must be getting cold.

[layman]

Bill Frist said he would ask the top executives of major oil companies to testify on why oil prices are so high

While you're at it, senator, hold some hearings on why the national debt is eight trillion dollars.

[BlueYonder]

This guy has a point. The oil companies don't know what to do with all those profits. They'd just use it the way they see fit - to make even more money. How obscene. The money would be far better in the government's hands. /sarcasm

Who elects these dingbats?

[Extremely Extreme Extremist]

Easily the most hare-brained idea I've ever heard.

The "greedy" oil companies will just shrug their shoulders and pass the costs back onto consumers.

[Sofa King]

Higher-than-usual profits is what encourages investors to provide capital to expand the industry, creating greater supply and thus lowering prices. I wish people would stop trying to break the free market anytime they don't understand how it's working with a glance.

[LibFreeOrDie]

Judd Gregg? Why doesn't he just give his $350 million Powerball lottery winnings to the poor, to help pay their heating bills, instead of advocating tired, old Carter lunacies?

It was $800,000+, but yeah, why doesn't he donate his winnings to Joe Kennedy and his heating oil "charity" so the Kennedys can skim the profits?

(I'm in New Hampshire and voted for this turkey. He will hear from me.)

[deaconjim]

I like this statement better:
I believe it is time to take a serious look at reinstituting an excess profit tax term limits on oil companies congressmen with the proceeds tax savings being put towards the Low Income Home Energy Assistance Program (LIHEAP) and deficit reduction," Gregg said in a statement.

[jess35]

"I believe it is time to take a serious look at reinstituting an excess profit tax on oil companies with the proceeds being put towards the Low Income Home Energy Assistance Program (LIHEAP) and deficit reduction," Gregg said in a statement.

It's time for Judd Gregg to be ridden out on a rail.

Just what in the h*ll is an "excess profit"? Does the government now decide how much profit my company is allowed to make?

[Political Junkie Too]

How about taxing athletes who make multi-multi-millions for throwing a ball in a hoop! Isn't their salary a bit excessive for what they do? Let's confiscate some of the NBA salaries to pay for the poor urban heating instead.

-PJ

[caisson71]

More reason why the RNC gets no more of my money. This clown wants a tax to get it anyway!

[Sam Gamgee]

Indeed. Only a socialist would suggest that there is an acceptable level of profit. I love that comment from Frist. He should ask God why there has been so many hurricanes this year. May as well ask a fisherman why salmon is so expensive. Likely he doesn’t have the foggiest idea or really gives a damn – he’s selling fish at better prices. Let’s bring every utility company to Congress to account for electrical bills. Hell. Have you seen the price of milk? I bet you poor families spend more on dairy products each week than oil to heat their homes?

[Sam Gamgee]

You're thinking of Republicans from 30s years ago.

[hkp037]

It was $850K he won. Good for him.. Everyone plays it, or bitches about it.. He can take that money and buy food and staples but he won't do it. He doesn't have to. He's one of the many few that can afford to do without. Screw him and all that look like him.. Vote these bastards out of office--nationwide!

[zbigreddogz]

Disagree with him on this issue if you want, but Gregg is a good conservative, and is certainly no RINO.

I'm sceptical, but freepers do need to stop treating oil like it's a free market enterprise. It's not, and some regulation is probably wise at certain times.

[Sam Gamgee]

Oh that's good! Shouldn't a republic have prevented the mob from milking future generations for its pillaging of the nation's finances? What went wrong?

[penowa]

Great idea for '06 from the Republicans. We NEED big long gas lines and every stockholder in the country to realize that next these bozos will be taxing away the profit they earned from the stocks they hold if they turn an unseemly profit (like .10 on the dollar!) This is a surefire way to lose even more seats in '06. Maybe the Democrats will run them all since who will be able to tell the difference between R's and D's? Oh, I know - the Democrats will be the ones screaming that the other party not only wants to raise your taxes, but has, AND has created the gas lines, short supply, etc. And they won't even have to lie for the first time ever!!!!!

[jec41]

Go ahead. They will just leave like they did with the 79 windfall profits tax. We are the worlds largest consumer of oil. 20 million barrels a day. However the rest of the world needs 65 million barrels a day. They will just sell it elsewhere and move their headquarters out of the US. They have already started building the refineries out of the country and started importing gasoline. 10% is now imported.

[penowa]

If I were you, I would not bet on that.

[Black Birch]

It's not, and some regulation is probably wise at certain times.

No it is not. Gas at a high price is better than no gas at a low price. The markets worked. What needs regulating are the organizations and people that block oil projects.

[VOYAGER]

Gregg, who was given high marks as a conservative Republican in 2004 by the American Conservative Union, acknowledged that it was unusual for him to call for a new tax.

"Some might call this a novel approach for me, but I cannot sit back in good conscience while those in our society struggling to heat their homes are being left in the cold by oil companies," he said.

Dear Mr. "Numb Noggin" Gregg who do you think will ultimately pay this penalty, the "tooth fairy"?

[cynicom]

The oil compaines are on the verge of killing the golden goose.

[Final Authority]

If we tax the oil companies to help the poor buy heating oil then why not tax WalMart to give money to people who need a new TV? We essentially tax property owners for rent control of apartments, it is called affordable housing, well, I want rich yacht owners to be taxed higher so I can buy a yacht under the affordable yacht government program.

The government got us in this global economy BS to make it easy for capital (profits) to cross borders and be invested elsewhere, now, with respect to oil development and refineries, we are now reaping what we sowed yesterday. If an oil company can make more offshore, then what's to stop them? Taxes won't, we will only get less of what we need. When something is subsidized, you get more, when it is taxed, you get less.

[VOYAGER]

WOW!

Good shot.

[who knows what evil?]

...he was concerned that U.S. oil companies were reporting record-high profits when some families will be unable to pay their natural gas and home heating oil bills because of high energy prices.

Do what many New Englanders are doing...move to warmer climes.

[traviskicks]

More reason why the RNC gets no more of my money. This clown wants a tax to get it anyway!
---

May I make a recommendation?:
http://www.clubforgrowth.org/why.php

[thackney]

The oil compaines are on the verge of killing the golden goose.

Yeah, those companies are just pouring in the profits. When was the last time you considered less than 10% profit "Golden"?

Company..............Profit..........Sales.........% Profit
Exxon Mobile......$ 9.92 B.....$ 100.7 B.....9.9%
Shell.....................$ 5.37 B.....$ 76.44 B.....7.0%
BP.........................$ 6.53 B....$ 65.76 B......9.9%
Chevron...............$ 3.60 B....$ 54.46 B......6.6%
ConocoPhillips...$ 3.80 B.....$ 49.66 B......7.7%
Marathon............$ 0.77 B......$ 17.25 B......4.5%

3rd quarter 2005 data

[RegulatorCountry]

"It was $800,000+"

I could have sworn that I read Judd Gregg won the $350,000,000 Powerball a week or two ago.

[NYorkerInHouston]

>If we tax the oil companies to help the poor buy heating
>oil then why not tax Walmart to give money to people who
>need a new TV?

Poor analogy. If someone does not have a TV will they die? What if a person lives in Alaska or Vermont or New Hampshire and can't afford to heat their home will they survive as the temperatures dip into the teens and 20's? What damage might be wrought to the homes pipes as the water freezes? I'm not suggesting that those some people should be subsidized in such a way that would heat their home to a balmy 70 degrees but would you really want your neighbors to freeze to death?

Having said that I would agree that taxing the oil companies is not the answer but some assistance whether it be government run or through the private sector will likely be necessary this winter given the current and projected prices of heating oil and natural gas.

[Tolerance Sucks Rocks]

[cynicom]

The golden goose is their control of world oil, not their profits, good or bad.

[NYorkerInHouston]

>Do what many New Englanders are doing...move to warmer climes

Good medium to long term solution but a family that can't afford the increases in heating bills this winter likely doesn't have the money to rapidly uproot and move several hundred miles to the south.