Posted on 04/24/2006 10:01:43 AM PDT by NormsRevenge
As motorists grumble about gasoline costs hovering around $3 a gallon, a Democratic lawmaker is trying to slap a so-called windfall profits tax on oil companies.
Assemblyman Johan Klehs, D-San Leandro, has a bill that would levy a 2 percent surtax on oil company income of more than $10 million a year. It's scheduled to be taken up Monday by the Assembly Revenue and Taxation Committee, which Klehs chairs.
The tax would raise $120 million in the fiscal year that begins July 1 and larger amounts in subsequent years, according to estimates by the state Franchise Tax Board. The surtax would sunset in 2010 unless extended by lawmakers.
Windfall profits taxes have been proposed several times before, but Klehs' bill is written in a way that could at least get it to Gov. Arnold Schwarzenegger, who has opposed any attempt to raise taxes.
In an interview Sunday on ABC's "This Week," Schwarzenegger didn't rule out the possibility. The Republican governor called record profits by oil producers in recent months "unbelievable ... outrageous," and sympathized with residents whose household budgets are being drained by climbing pump prices.
He did not address any specific piece of legislation.
"We've got to protect the people," the governor said at another point, referring to oil profits.
The revenue generated by the Klehs bill would cover the cost of a tax credit to help low- and middle-income senior citizens pay for prescription drugs.
That would make the bill revenue neutral and reduce the votes required to pass it to simple majorities, Klehs said. Bills raising or imposing a tax typically require two-thirds votes.
"We will stick this right on the governor's desk," Klehs said. "We're raising revenue and providing tax relief to some of the neediest people in the state, to seniors who are paying through the nose on prescription drugs."
He said he got the idea for the prescription tax credit from an offhand comment made to him by an oil company lobbyist on a television news show.
"The way they can get around paying this is to not rip off consumers with the high price of gas," Klehs said.
Oil company lobbyists didn't return telephone calls from The Associated Press seeking comment. But an Assembly analysis of the measure states that business groups contend the legislation would hurt California's business climate by imposing a punitive tax.
Here are some of the other bills facing votes this week, a busy one because Friday is the deadline for most bills to pass their first committee:
FLOOD INSURANCE - A bill by Assemblyman Dave Jones, D-Sacramento, would require Central Valley property owners in flood-prone areas to buy flood insurance unless the state or a local agency certified the property had adequate levee protection. It's before the Assembly Banking and Finance Committee on Monday.
GRADUATION EXAM - Starting this year, California high school students must pass a state exam to graduate. That's sparked debate about whether the requirement will deny diplomas to some deserving students. Sen. Gloria Romero, D-Los Angeles, has a bill that would create two types of high school diplomas - one with an insignia for students who pass the exam and one without the insignia for those who meet other graduation requirements but don't pass the test. The Senate Education Committee plans to consider the bill Wednesday.
DEATH PENALTY - Assembly members Sally Lieber, D-Santa Clara, and Paul Koretz, D-West Hollywood, are trying again to put a moratorium on executions until a state commission reports next year on ways to improve the accuracy of jury verdicts in criminal cases. An earlier bill died in the Assembly Appropriations Committee. The latest version is before the Assembly Public Safety Committee on Tuesday.
REDISTRICTING - The debate over who should have the powerful job of drawing legislative and congressional districts resurfaces Monday as the Senate Appropriations Committee considers a constitutional amendment by Sen. Alan Lowenthal, D-Long Beach. Voters rejected an attempt by Schwarzenegger last November to take redistricting duties away from lawmakers and give them to a panel of retired judges. Democrats labeled the Schwarzenegger plan a Republican power grab but promised to put their own redistricting overhaul on the ballot this November. Lowenthal's proposal, which would need approval from voters as well as lawmakers, would create an 11-member citizens commission to draw the districts.
DIVORCE RECORDS - The California Newspaper Publishers Association and First Amendment advocates are battling a bill by Sen. Kevin Murray, D-Culver City, that would allow a spouse to seal certain financial records in a divorce case. Critics contend the measure is designed to aid billionaire Ron Burkle, a major campaign contributor who has tried to seal records in his divorce proceedings. Murray's bill, which is on a fast track, is before the Assembly Appropriations Committee on Wednesday.
PRESIDENTIAL PRIMARY - A bill by Assemblyman Tom Umberg, D-Garden Grove, could put California in a race with New Hampshire to have the earliest presidential primary in the country. The bill, before the Assembly Elections and Redistricting Committee on Tuesday, would require the secretary of state to schedule the election as early as Jan. 2 in presidential election years and conduct it by mail. California experimented with a March presidential primary for a few years in an unsuccessful attempt to give it a bigger say in picking presidential nominees, before retreating to its traditional June primary election date.
CABLE TV - A bill by Assembly Speaker Fabian Nunez, D-Los Angeles, would help telephone companies get into the cable television and Internet business. The measure, scheduled to be taken up Monday by the Assembly Utilities and Commerce Committee, would allow companies such as AT&T and Verizon to apply for state-issued cable TV licenses, instead of negotiating with individual cities and counties for access. Supporters say the bill would create competition and lower prices, but opponents say it could allow the telephone companies to skim off the best neighborhoods for cable service.
Want to reduce the supply of something? Just TAX it! Typical demo/socialist answer. They'll never learn.
How the hell is that going to lower gas prices?
Fed, state and local gov'ts are raking in more dough than the oil companies. What's the add-on in CA, over $0.36/gal, isn't it? That's way more than the oil companies get.
Then if gas prices were lower, want would happen to the drug program?
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
It won't at all. It will just stroke some people's "class envy organs" and in the end inccrease the cost of gas.
When will the producers of society just say NO to this crap.
San Francisco Chronicle Story: Schwarzenegger to Push Global Warming Tax
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
The History we forget, we are doomed to repeat.
There are those who would say that our outrage at this is likely to get Angelides or Westly elected.
So lets all close our eyes and look the other way. After all he's a "Republican."
Taxes on taxes on taxes on taxes! And our fathead Grinninator thinks government can "protect the people?" Gimme a break from the girlieman grinninator!!! Phhhhhhhhht!!!
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
Holy crow. Now that takes chuzpah!
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
chuzpah=chutzpah. And a LOT of it. Wow.
I liked Schwarzenegger much better when he was just a Hollywood celebrity.
He should have quit while he was ahead.
I'm hooked on Phonics, Ha Ha Ha!!!
LOL. That reminds me of the teacher I had in first grade, who taught reading using ITA. I was reading already, but was sent home with that stuff. Screwed up my spelling for years.
"In an interview Sunday on ABC's "This Week," Schwarzenegger didn't rule out the possibility. The Republican governor called record profits by oil producers in recent months "unbelievable ... outrageous,""
I wonder what Arnie things about the millions paid to total asses like Tom Croooz for reading lines off a teleprompter? Can you believe it, someone from Hollyweird lecturing us about obscene profits. I took my 2 grandchildren to the movies the other day. We went in the afternoon of a weekday (they had no school that day). Both qualify for discount tickets. The three tickets still cost me over $16 plus another $10 for 2 cokes, a smidgen of popcorn, and a small piece of candy. Now we should tax those profits.
Do you hear that sound? It's the sound of money passing Mach 1.0 as it leaves the state - as the oil companies move....
How about a windfall gas tax profit tax?
Maybe they should talk about a reduction of the state of CA gas tax.
This is hilarious. I can't wait for the 5% tax to be passed on to the operators, and then the pump. And, boy, I can't wait to get my gasoline rebate check in the mail from the governor from all those tax monies they're going to collect.
Simply infuriating.
Precisely!!
Who would you rather have the revenues? companies that will use the money to drill more wells and add to the supply, or a bunch of crooked politicians who could care less what you pay for gas as long as they get more money (read "power") to spend.
I cannot believe how "stuck on stupid" many people are and why they can't learn from past mistakes...absolutely amazing...
CUT FEDERAL GAS TAXES NOW.
Increase taxes on states that require boutique fuels to make up the difference.
What does that have to do with the govt. getting its hands on more tax dollars?
Geez, go and state the obvious, you mind as well yell "The emperor has no close!" also.
;o)
Giving Cali back to Mexico never looked so good. :)
It sure would be great if this were done in all the blue states. That way, the oil companies will avoid sending gas there and, instead, send it to the Red States where prices will plummet.
At any rate, this is just another fancy way of saying "price caps." Socialists are so silly. Perhaps liberalism is a disease.
"The revenue generated by the Klehs bill would cover the cost of a tax credit to help low- and middle-income senior citizens pay for prescription drugs. "
BTW, what is the gas tax amount for California?
Where were these SFBs when oil was $10 per Bbl?? Why was there no "reverse-windfall profits tax?" (I guess that would be a credit?) While $3 per gal oil aggravates me, it's waaay more complicated than what the oil companies do.
There is a perception (and remember, in politics perception can be reality) that the major oil companies are not doing what you say, namely plowing a reasonable amount of their record profits back into exploration and production. I know you've heard the "there hasn't been a new refinery constructed in this country since 19 and umpty ump" (82?). Whose responsibility is it to construct new refineries, the Federal Government's? "Stuck on Stupid" is a two-way street. If nothing else the energy companies have been "stuck on stupid" in terms of public education about the industry decades. Now the economic law of supply and demand is going to meet the political law of "lack of supply" (and record profits) and the demand for (government) action.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.