Senior US Republican says oil tax may be needed

Reuters ^ | 10/28/5

[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.

[LibFreeOrDie]

Article about the Juddster's lottery win:

http://www.cnn.com/2005/POLITICS/10/20/judd.lottery/

[Extremely Extreme Extremist]

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.

Exactly. The markets did work. Gas prices are declining - why? Because people are using less. The Invisible Hand needs to smack the feces out of bird-brained people who don't understand basic economics.

[SauronOfMordor]

If you're going to impose a tax on oil, impose a tariff on IMPORTED oil, so as to create an incentive to exploit internal energy sources

[Redcloak]

Hmmm... Gas prices are too high, so we're gonna raise taxes on the raw material from which gas is made. Okaaaay... What's next? Direct the Air Force to bomb a few refineries?

[EVO X]

Exactly. The markets did work. Gas prices are declining Gas is down to $2.25 for regular in central Illinois.

[NYorkerInHouston]

>If you're going to impose a tax on oil, impose a tariff on
>IMPORTED oil, so as to create an incentive to exploit
>internal energy sources

Interesting idea but tricky to implement. Lets say that you put a tariff on crude oil. The net effect of that might only be to shift refinery processing of the imported crude offshore, resulting more importation of refined petroleum products, bypassing the tariffs.

Now let say that a more pervasive tariff was put in place affecting not only crude oil but also some of the refined products, lets say gasoline and diesel. That too could be problematic as the US typically exports diesel to Europe in exchange for gasoline that Europe exports to here. Imported gasoline with the tariffs added would likely raise the price of gasoline for the average consumer but would it provide incentives for domestic drilling?

[TXBSAFH]

Good!!!!

[decal]

He's not up for re-election until 2010 - why is he pandering for votes NOW?

[xzins]

IF you have water and happen across a man in a desert who is actually dying of thirst is it ethical to sell him the water for the price of his house and all of his money?

You could probably get it, considering his life is at stake. Therefore, the "market" will bear it.

[caisson71]

Oh yes, and how convenient for those who question those nasty oil company profits while ignoring the following pretax profit margins: Dell computers 9.18%, IBM 12.74, GE 14.52%, Citibank 30.01% to name a few.