Sen. Specter: Tax Oil Company Windfall Profits

Newsmax ^ | 04/24/2006 | Carl Limbacher

[SirLinksalot]

Sen. Specter: Tax Oil Co. Windfall Profits

The government should consider a tax on oil companies if they make excessive profits amid rising gasoline prices, a leading Republican senator said Sunday.

Pennsylvania Sen. Arlen Specter, chairman of the Senate Judiciary Committee, said a windfall profits tax, along with measures to stem concentration of market power among a few select oil companies, could offer eventual relief to consumers hurting at the gas pump.

"I believe that we have allowed too many companies to get together to reduce competition," Specter said.

"They get together, reduce the supply of oil, and that drives up prices," he said. "In the short run, it's hard to deal with it for tomorrow. But I think windfall profits, eliminating the antitrust exemption, considering the excessive concentration of power are all items we ought to be addressing."

Specter is backing legislation that would strengthen antitrust laws on oil company mergers after his committee held a hearing last month examining the growing consolidation of the oil industry. The nation's largest oil companies, including Exxon Mobil Corp., have denied their industry size has affected prices.

Last week, crude-oil prices hit record highs and average gasoline prices nationwide neared $3 a gallon.

Sen. Carl Levin, D-Mich., said he believes gas prices "would come down within a matter of days" if President Bush told oil companies that he was going to support a windfall profits tax.

"But the president will not call the oil companies into his office because he's been too closely allied with those oil companies, and if he does it's going to be a window-dressing conversation," said Levin, who appeared with Specter on CNN's "Late Edition."

[cardinal4]

*Sigh* And now you know why after 6 years of control, the Republican Senate's accomplishments can be counted on both hands..

[TexasTransplant]

Spector didn't even slow down when he passed the moniker "I'm a Fool" and went straight to "Imbecile"

Oil companies receive 7 cents per gallon while the State and Fed cut is about 69 cents, so I ask "Who is more responsible for High Gas Prices"

I'm sure Spector has an answer.

TT

[RexBeach]

Good Lord, this is one of the dumbest ideas I've heard of since Jimmah Carter.

Don't these pinheads in Congress know that the oil companies don't set the price of oil. Markets do. Duh!

What we ought to do is reduce the federal gas tax.

But then, if that happens, pigs will fly and everything.

[p23185]

*Sigh* And now you know why after 6 years of control, the Republican Senate's accomplishments can be counted on both hands..

These Repubs are NOT conservatives, and I am beginning to wonder if they even believe in the Capitalistis free economic system? Corporations DO NOT PAY TAX - you do, one way or another. Less profits means less R&D, less reinvestment in refineries, less drilling, you name it. It will not come out of the stockholders hide no matter how politically correct you may think this will play in Peoria.

[TexasTransplant]

To clarify my last post

"Big Oil" receives about 7 cents per gallon, the Station selling the fuel gets about the same or about 7 cents.

[EagleUSA]

..the Republican Senate's accomplishments can be counted on both hands..
-----
Without a doubt. IMHO, the GOP is finished. We gave them two terms in the White House, and two Congressional majorities -- and look what they have done with it, AND TO US, with it. There is NO leadership in the GOP who now focus more on what gets printed in the MSM and how they will get reelected. Case in point -- their fervent desire to give away America to the illegals. Sickening.

[beethovenfan]

Yeah, Senator Sphincter, just what we need - more taxes!
That'll make the price of gas go even higher.

[Robe]

Arlen...you useless twit

[CROSSHIGHWAYMAN]

Specter insults the word, buffoon!

[llevrok]

Profit margins for oil companies are not excessive (about 8%).

The profits look large because the scale and scope of these industries are high. Benchmarking in our minds against other large scale US industries such as GM or Ford is not a fair comparison. These are dying industries

BTW - where was the government helping oil companies when oil was $10 a barrel?

[ICE-FLYER]

I am not calling you out or anything...but you do seem to know the cost to whom in the process.

Could you possibly tell us where 3 bucks a gallon goes then??

Regards!

[So Cal Rocket]

Average profit for oil company per gallon of gas ~ 9-12 cents/gallon

Federal Excise Tax per gallon of gas = 18.4 cents/gallon

California Gas Tax per gallon of gas = 18 cents/gallon

Californis Sales Tax per gallon of gas = 21-24 cents/gallon

Total taxes/gallon = 57-60 cents/gallon

So, the Government is making 5 to 6 times more "profit" on a gallon of gas than the oil company.

[Rambler1277]

I think the plan goes something like
1. Introduce Windfall tax that "Spectre" will use to buy votes
2. Wait for market to adjust price normally
3. Claim it was all due to you.

What a moron this guy is. And regarding the percentage that the gas station gets, the oil companies only own a fraction of the stations out there. The rest of the profits go to India.

I haven't seen a word regarding ditching these rediculous environmental rules, which also jack up the price.

[mjwise]

Sen. Carl Levin, D-Mich., said he believes gas prices "would come down within a matter of days" if President Bush told oil companies that he was going to support a windfall profits tax.

Yeah, threatening to TAX a company's earnings more will surely LOWER prices. /sarc

[mikeybaby]

Let's see if I've got this straight;
Offshore oil rig: $150,000 per day;
Subsea network to transport oil to shore:$200-300 million;
Refinery: $800 million (Good luck building a new one);
Gas price: $3 a gallon.

Cost of cow: $400 (Approx);
Milk price: $2.89 a gallon.

We should demand that the Dairy farmers be called before Congress to explain their obscene profittering

Geesh.

[Unam Sanctam]

What anti-market demagoguery!

[RegulatorCountry]

I have a much better idea, Arlen ... why don't we refund the windfall tax receipts due to increased gas prices? As I understand it, oil companies profit around 3 cents per gallon. State and federal governments "profit" around fifty-four cents per gallon.

[FreePaul]

The more I hear of Specter's public statements the more I believe that the Democrats have something on him that would end his political career in a minute. Nobody could be that stupid without extensive preparation.

[topher]

That's all we need is to do things to drive gasoline prices even higher.

Let's prevent all investment in oil and gas technology so that prices go even higher - by making it difficult for people to invest in oil and gas technology stocks...

Stupis is as stupid does... Senator Spencer is a lame brain...

[hosepipe]

Givernment = Windfall taxes on "ENERGY" not just gasoline..

Federal givernment is a parasite on the people..
But then, so is State, County, and Local giverments..

Givernment bleeds the economy and adds NOTHING.. like a TICK..
We can live with ticks its the Vampire Bats thats the problem..
They carry the social disease of socialism..

[SCHROLL]

there should be a one time windfall tax on the stupidity of elected officials. We'd have no national debt and be running a trillion dollar surplus.

[Cicero]

Bush and Rove just had to get this guy re-elected. He's been so helpful.

[TexasTransplant]

Crude, Refining, Bouquet Blending (read Regulations) and Shipping.

TT

[Tenacious 1]

FOOLS!

Businesses don't pay taxes! They include the cost of doing business and paying taxes in the price of their product so the consumer pays the taxes. Adding more taxes to the oil companies would do as much good as standing outside their headquarters and beating the building with a baseball bat. If you want the price of gasoline to go down, make the market lucrative for competition. Make new refineries and harvesting operations tax free.

Why is it that I know more about capitolism and free market economies than our elected officials? Will someone show me one instance where a company, not workers, citizens or employees were punished as a result of penelty taxes? You can no more punish a company than you can punish a hurricane.

If you want to punish those driving the cost of gasoline up. Look at the government who takes about 30% of all gasoline revenue before anyone else gets a crack at it.

[FreePaul]

Offshore oil rig: $150,000 per day;...

Some drilling rigs are going for around $500,000 per day now.

[Rambler1277]

Profit per dollar revenue:
Pharma ... 18.5 cents
Banking ... 18.0 cents
Oil ... 8.2 cents

Isn't Mr Spectre targeting the wrong industry?

[petercooper]

[Ikemeister]

Bush came to PA and campaigned for Specter in the primary against Pat Toomey, a bona fide conservative, when Specter was facing defeat. The problem starts at the top.

[Tenacious 1]

And while your at it, can you teach me to spell?

[TexasTransplant]

>>>>"Let's see if I've got this straight;
Offshore oil rig: $150,000 per day;
Subsea network to transport oil to shore:$200-300 million;
Refinery: $800 million (Good luck building a new one);
Gas price: $3 a gallon.

Cost of cow: $400 (Approx);
Milk price: $2.89 a gallon.

We should demand that the Dairy farmers be called before Congress to explain their obscene profittering"<<<<

How about "Big" Bottled Water ?

TT

[sure_fine]

Sen. Specter: Tax Oil Company Windfall Profits





spoken like a true democrat if ever I heard one

[EagleUSA]

So, the Government is making 5 to 6 times more "profit" on a gallon of gas than the oil company.
------
Just like cigarettes. Find the addictive drug and its junkies and TAX IT (them) to death. Standard modus operandi.

[tcostell]

Well it doesn't really matter....2 months after they announce it, there won't be any windfall profits.

And two months after that, there won't be any domestic oil companies either.

[<1/1,000,000th%]

Banks make twice the profit margin that oil companies do.

I wonder why Spectre desn't want to increase their taxes?

[SolidSupplySide]

Cost of cow: $400 (Approx);

I'd go into the ranching business I could buy a cow for appx $400. I think you're off by a factor of 5 or 6.

[sgtbono2002]

Something needs to be done, but this aint it.

Mainly we need more refineries and we need to find our own sources and we need to star using oil shale and synthetic fuel from coal.

If Sphincter taxes oil company profits the oil companies raise the price to pay the taxes and still make the same profits, the government gets a few bucks and the consumer --as usual-- gets the shaft.

[synbad600]

Someone ought to show him a menu from a seafood restaurant which offers items priced for "market".

[MileHi]

"Big Oil" receives about 7 cents per gallon, the Station selling the fuel gets about the same or about 7 cents.

Can you source this? I see a letter to the local fishwrap in my future.

[jazzlite]

Too many politicians know nothing about how intimately our economic system is tied to individual freedom and democracy..They always play to the mob..Their game is to distort and place blame where it does not belong. Bill O'Riley also has been singing a similar tune..Makes me sick! 7 cents a gallon for the oil company..69 cents a gallon to go to the government for pork waste?..Sounds like "no contest" when deciding where to place the blame for high gas prices.

[talleyman]

How about a "windbag profits tax" on idiot Senators?

[andy58-in-nh]

I hereby propose a "Windbag Profits Tax" on Congress. Every time a sanctimonious, publicity-hungry, and/or blindly bloviating member of the House or Senate makes a public spectacle of him- or herself in the act of promoting a Government-fattening scheme, each citizen misrepresented by the Windbag in question shall be entitled to a Federal Income tax credit. The credit shall be the larger of $100.00 or the annual cost of the Windbag's proposal to each taxpayer.

[andy58-in-nh]

Great minds do think alike!

[FreePaul]

You left out the "entertainment" industry, movies, TV, sports, "music," etc.

[jazzlite]

..."demagoguery!"...

Yes, that's the word to describe it!

[Mr Ramsbotham]

I hereby propose a "Windbag Profits Tax" on Congress. Every time a sanctimonious, publicity-hungry, and/or blindly bloviating member of the House or Senate makes a public spectacle of him- or herself in the act of promoting a Government-fattening scheme, each citizen misrepresented by the Windbag in question shall be entitled to a Federal Income tax credit. The credit shall be the larger of $100.00 or the annual cost of the Windbag's proposal to each taxpayer.

I've got something even better. Back in ancient Italy there was a Latin tribe who had an unusual custom. If someone wished to propose new legislation, he came to the assembly with a rope around his neck. If the legislation passed, all was well. If not, the proposer was instantly strangled.

[pointsal]

Must not be giving any economic instruction in the good state of Pennsylvania...

dimwit Arlen....

[DuncanWaring]

...where 3 bucks a gallon goes then

Darned near two bucks of it goes just to buy the crude.

[PogySailor]

PogySailor: Enact a "Senator Hot Air Speech" tax.

[TexasTransplant]

>>>"Can you source this? I see a letter to the local fishwrap in my future"<<<

Local Talk show this AM, had an Oil Co (from a local Refinery) discussing the topic, who also explained why my Diesel is so darned expensive.

There are many here at FR much more qualified and can give Accurate numbers.

TT