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Dems propose 'Reasonable Profits Board' to regulate oil company profits
The Hill ^

Posted on 01/19/2012 11:33:44 AM PST by Sub-Driver

Dems propose 'Reasonable Profits Board' to regulate oil company profits By Pete Kasperowicz - 01/19/12 10:20 AM ET

Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits.

The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.

The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding "a reasonable profit." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.

The bill would also seem to exclude industry representatives from the board, as it says members "shall have no financial interests in any of the businesses for which reasonable profits are determined by the Board."

According to the bill, a windfall tax of 50 percent would be applied when the sale of oil or gas leads to a profit of between 100 percent and 102 percent of a reasonable profit. The windfall tax would jump to 75 percent when the profit is between 102 and 105 percent of a reasonable profit, and above that, the windfall tax would be 100 percent. The bill also specifies that the oil-and-gas companies, as the seller, would have to pay this tax.

Kucinich said these tax revenues would be used to fund alternative transportation programs when oil-and-gas prices spike.

"Gas prices continue to rise, creating a hardship for the American people," he said. "At the same time, oil companies are making record profits gouging their customers. This bill would tax only the excess profits and create forward-thinking transportation alternatives."

Specifically, he said the money would be used to fund a tax credit on the purchase of fuel-efficient cars and set up a grant program for mass transit programs when oil-and-gas prices are high.

The bill does not estimate the size of these grants or the amount of money that might be collected through the tax.

Co-sponsoring the bill are five other Democrats: Reps. John Conyers Jr. (Mich.), Bob Filner (Calif.), Marcia Fudge (Ohio), Jim Langevin (R.I.), and Lynn Woolsey (Calif.).


TOPICS: Business/Economy; Front Page News; Politics/Elections
KEYWORDS: bloodoftyrants; democrats; elections; gasprices; govtabuse; liberalfascism; lping; nodemocrats2012; socialism; socialistdemocrats; stealthewealth; taxcheatparty; tyranny; waronliberty
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Stalin would be proud.........
1 posted on 01/19/2012 11:33:49 AM PST by Sub-Driver
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To: Sub-Driver

Creepy....


2 posted on 01/19/2012 11:35:48 AM PST by isthisnickcool (Sharia? No thanks!)
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To: Sub-Driver

There’s incentive for you.


3 posted on 01/19/2012 11:36:15 AM PST by Sacajaweau
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To: Sub-Driver

So, are they going to introduce the

“anti-Dog eat dog” law?


4 posted on 01/19/2012 11:36:22 AM PST by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: Sub-Driver
makes sense only for Companies who receive taxpayer's bailout money, and then, only until they have fully repaid the money as determined by an outside Auditor. other than that, what about Apple, Google, Facebook, GE, Utilities Companies, Companies headed by former administration officials....
5 posted on 01/19/2012 11:36:46 AM PST by sappy (criminaldems)
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To: Sub-Driver
I thought the left wanted conservation? Wouldn't high prices cause people to look for ways to reduce use and artificially low prices encourage excessive use?

The libs just want to control every aspect of life. The reasons they are giving for their imperial power grabs don't even make sense any more.
6 posted on 01/19/2012 11:37:06 AM PST by GonzoGOP (There are millions of paranoid people in the world and they are all out to get me.)
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To: Sub-Driver
That is why as Investors Business Daily editorialized on April 26,2010 "At last count, 35 such investigations have been conducted over the decades, and none -- not a single one -- has turned up wrongdoing by investors or oilmen." All of this talk of speculation is just boob bait for bubbas, intentionally misleading the gullible, uneducated, and easy to command. As IBD added, "Rather than carry out another useless inquisition of private citizens, our political class should be investigating its own role in the price crisis. The result would be a revelation for those who fall for Washington's line about greedy businessmen whenever gasoline prices become painfully high."

But President Obama does have a policy answer to the question, what is your plan to address rising gas prices? He wants to raise taxes on oil companies. With all of the profits oil companies are making, Obama says, they don't need any subsidies. He labels $4 billion in tax loopholes as oil company subsidies and calls for those loopholes to be closed.

Oil companies should not be getting subsidies from the government in any event. But the dollar amount of oil profits is high because the oil companies invest such huge amounts to produce oil. As a return on investment or sales, oil profits are modest. While ExxonMobile and the other oil companies earn about 7% on sales, respected public citizens such as Google, Microsoft, and McDonald's regularly earn 20% or more.

Moreover, the fundamental truth is that the government doesn't subsidize oil companies. Oil companies subsidize the government. ExxonMobile alone pays more in income taxes than the bottom 50% of income earning citizens combined. In 2008 alone, ExxonMobile paid $116.2 billion in taxes. The effective corporate tax rate for all oil companies in 2008 was 42.3%.

************************************************************************************************************************************************* If you want the lower gas prices, lower oil prices, and lower energy prices necessary for a booming economy, you are going to have to get yourselves another President.

http://spectator.org/archives/2011/05/04/obamas-war-on-oil/

7 posted on 01/19/2012 11:37:22 AM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
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To: Sub-Driver

I’d like to see a “reasonable government thievery board” that would determine and control how much of other people’s money the lowlife politicians in Washington are allowed to steal and extort from Americans.


8 posted on 01/19/2012 11:37:56 AM PST by FlingWingFlyer ("Climate Change" my a.... All weather is local.)
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To: Sub-Driver
Sounds like someone beside newt and perry are after those evil capitalist.
9 posted on 01/19/2012 11:37:56 AM PST by org.whodat (Sorry bill, I should never had made all those jokes about you and Lewinsky, have fun.)
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To: Sub-Driver

I don’t have the numbers readily available, but does not the govt collect more from the sale of a gallon of gas than the oil company makes in profit?


10 posted on 01/19/2012 11:38:10 AM PST by Da Coyote
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To: MrB
So, are they going to introduce the “anti-Dog eat dog” law?

And we have a winner on the fourth message on the thread!

11 posted on 01/19/2012 11:39:21 AM PST by hc87
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To: Sub-Driver
...would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas

Then what company would even bother to sell excess oil and gas, might as well dump it into a storage tank and leave it there, in hopes the tax is recinded some day.

12 posted on 01/19/2012 11:42:20 AM PST by apillar
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To: Sub-Driver
And I propose Congress set up a 'Reasonable Profits Board' to regulate the entertainment industries profits.

I've had it with the price gouging of "Big Entertainment".

13 posted on 01/19/2012 11:43:28 AM PST by AU72
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To: Sub-Driver

Sure it makes sense, when you need something make it so companies cannot profit by giving it to you.

After all, they make “enough” and should do stuff for us for free. /s

Why can’t we get rid of liberals this way? Believe me Obama and Michelle are NOT going to do this for nothing.


14 posted on 01/19/2012 11:45:07 AM PST by Williams (Honey Badger Don't Care)
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To: Sub-Driver

How 10-289 of them...


15 posted on 01/19/2012 11:45:22 AM PST by Michael Barnes (Obamaa+ Downgrade)
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To: Sub-Driver

Something reasonable proposed by “Dennis the Menace?”


16 posted on 01/19/2012 11:46:30 AM PST by SandRat (Duty - Honor - Country! What else needs said?)
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To: isthisnickcool

Freak’n communists. Half the country better wake up.


17 posted on 01/19/2012 11:47:21 AM PST by Bitsy
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To: Sub-Driver

follow by a purposal to “hug a mental midget day”


18 posted on 01/19/2012 11:47:49 AM PST by Leep (Paul/Ventura 2016)
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To: Leep

followed


19 posted on 01/19/2012 11:48:19 AM PST by Leep (Paul/Ventura 2016)
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To: Da Coyote

Yes they do via taxes. On average an oil company makes a dime on a gallon.


20 posted on 01/19/2012 11:50:58 AM PST by Sub-Driver (Proud member of the Republican wing of the Republican Party)
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To: Sub-Driver

Sure it makes sense, when you need something make it so companies cannot profit by giving it to you.

After all, they make “enough” and should do stuff for us for free. /s

Why can’t we get rid of liberals this way? Believe me Obama and Michelle are NOT going to do this for nothing.


21 posted on 01/19/2012 11:51:17 AM PST by Williams (Honey Badger Don't Care)
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To: Sub-Driver

Aaaaaaaaaaaaaaaaaaaah!


22 posted on 01/19/2012 11:51:37 AM PST by Tublecane
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To: Sub-Driver

Creeping communism. Will the American People wake up before it’s too late?


23 posted on 01/19/2012 11:52:23 AM PST by Signalman
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To: Sub-Driver

But it’s not Fascism, oh no.


24 posted on 01/19/2012 11:53:28 AM PST by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: Sub-Driver

July 28, 2010
Oil Industry Taxes: A Cash Cow For Government

by Scott A. Hodge

Special Report No. 183

Key Findings

• Data from the Energy Information Administration show that governments in the U.S. and abroad are hugely dependent upon the direct and indirect taxes paid by the largest consolidated oil companies, and that between 1981 and 2008 these tax pay­ments exceeded corporate profits by 40 percent.

• Between 1981 and 2008, the oil industry paid more than $388 billion to the federal and state governments in corporate income taxes, but they paid almost twice that amount, $683 billion, to foreign governments.

• Profits and income tax payments mirror the price of oil. In 1998 when the price was low, the industry paid just $733 million in federal and state income taxes. In 2006, with the real price of oil averaging over $63 per barrel, the industry paid a record $37 billion in corporate income taxes.

• Excise tax collections have grown steadily. Between 1981 and 2008, $1.1 trillion was collected in excise and sales taxes on petroleum products. In 1999 governments collected $59 billion, more than twice the industry’s net profits that year.

• In severance, property and so-called windfall profit taxes, the industry paid more than $472 billion between 1981 and 2008.

http://www.taxfoundation.org/news/show/26555.html


25 posted on 01/19/2012 11:53:28 AM PST by epithermal
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To: Sub-Driver
We need, really need, to monitor all members of the House and what type of income, profit from business, Perks, speaking fees, etc that they receive. We need to monitor and set the profit margin of all authors and ghost authors.

We really need to get a handle on all of the unnecessary WH expenses that we are paying for.

Are the tires on the cars of the secret service properly inflated?

Air Force one needs to eliminate all unnecessary trips. There is so much that needs to be monitored at the public level.

Leave the private enterprises alone.

26 posted on 01/19/2012 11:53:48 AM PST by mckenzie7 (Democrats = Trough Sloppers!)
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To: MrB

Thank you. As soon as I saw the headline, I was trying to remember what Rand called that.


27 posted on 01/19/2012 11:53:48 AM PST by wolfpat (Not to know what has been transacted in former times is to be always a child. -- Cicero)
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To: Sub-Driver

Anything proposed by the ex-mayor of the mistake on the lake, I needn’t even read. What a POS. Loosen the dung beetles. JMHO of course.


28 posted on 01/19/2012 11:54:09 AM PST by Rannug ("God has given it to me, let him who touches it beware.")
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To: ADemocratNoMore; Aggie Mama; alarm rider; alexander_busek; AlligatorEyes; AmericanGirlRising; ...
Normally I don't ping the Atlas Shrugged FReeper Book Club for a simple news item like this, but this one was too good to pass up. Go to Part 1, Chapter 4 -- "The Immovable Movers" -- and read up on the Anti-Dog-Eat-Dog Rule.

Our march through the book continues. Four chapter down, 26 chapters to go.

29 posted on 01/19/2012 11:54:23 AM PST by Publius
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To: Sub-Driver

“oil companies are making record profits gouging their customers. This bill would tax only the excess profits and create forward-thinking transportation alternatives.”

If they call setting the market price “gouging,” I’m gonna rename the Democratic party “poop,” and no one will vote for them because that’s yucky.


30 posted on 01/19/2012 11:54:41 AM PST by Tublecane
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To: Sub-Driver

This has atlas shrugged written all over it.


31 posted on 01/19/2012 11:54:59 AM PST by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
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To: Sub-Driver

Democrats suck!
32 posted on 01/19/2012 11:55:59 AM PST by Lucky9teen (Peace is that brief glorious moment in history when everybody stands around reloading.~Thomas Jeffer)
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To: Sub-Driver

I propose a “Reasonable Salaries Board” to regulate Congressmen’s salaries...what’s good for the goose and all that.


33 posted on 01/19/2012 11:56:00 AM PST by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: Sub-Driver
And I'm sure the same panel will propose pay back oil companies during the downward swings in the price of oil as well.

Not.

34 posted on 01/19/2012 11:56:43 AM PST by dirtboy
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To: Sub-Driver

A reasonable profits board.

In the Stalin era they were called ministries.

They were there to ensure equal death and suffering for all.


35 posted on 01/19/2012 11:56:53 AM PST by lurk
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To: Sub-Driver

Directive 10-289 if my recollection is correct?


36 posted on 01/19/2012 11:57:08 AM PST by oldtimer (uee)
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To: Sub-Driver
The Dems know that failing to approve the Keystone pipeline will lead to higher fuel prices. This is simply them doing more of their shrieking to change the subject and protect Obama.
37 posted on 01/19/2012 12:01:05 PM PST by Major Matt Mason (The Chicago Way isn't the American Way.)
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To: Sub-Driver

That should work fine, so long as the American people don’t expect a “reasonable” supply of fuel to keep their cars running and their homes “reaonably warm”.

I propose a Reasonable Dumb Idea Board, to regulate the number of these idiotic and dangerous ideas the Democrat party can propose each year.


38 posted on 01/19/2012 12:02:23 PM PST by Above My Pay Grade
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To: Publius

Absolutely stunning. Can AS get any more real?


39 posted on 01/19/2012 12:04:06 PM PST by BuckeyeTexan (Man is not free unless government is limited. ~Ronald Reagan)
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To: Sub-Driver

You know who makes the biggest profits on a gallon of gas? Government. Government makes about 50 cents a gallon (it varies by state). 50 cents on zero investment figures to be an infinite profit. Government doesn’t have to explore for petroleum. It doesn’t have to extract it. It doesn’t refine it or transport it or sell it. It just has to sit back and let the profits roll in.


40 posted on 01/19/2012 12:04:06 PM PST by fhayek
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To: Sub-Driver

Soooo......... the feds want to tell a private corporation:

where to get their product.

how to get their product.

how to transport their product.

where they can create their product.

how they manufacture their product.

what they have to put in and leave out of their product.

and now they want to tell the private company how much profit they are allowed to make....

this is wrong on so many levels, i cannot even get angry....simply friggin unbelievable!!!

can someone show me where in the constitution the feds have this power?


41 posted on 01/19/2012 12:04:27 PM PST by joe fonebone (Project Gunwalker, this will make watergate look like the warm up band......)
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To: Sub-Driver

Oh, really?
Would this be a percentage or a dollar limit?
Which operating cost number would provide the basis?
Does it apply to individual companies within the corporation or the corporation as a whole?

Let’s say the profit limit is 10%.
What does this mean for all of the non-oil companies with considerably higher profit margins?


42 posted on 01/19/2012 12:04:44 PM PST by G Larry ("I dream of a day when a man is judged by the content of his Character.")
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To: Da Coyote
Yes.

The Feds could drop the price of a gallon of gas .50 cents tomorrow....

43 posted on 01/19/2012 12:05:11 PM PST by Osage Orange (HE HATE ME)
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To: Above My Pay Grade

Bill of Attainder anyone?


44 posted on 01/19/2012 12:07:47 PM PST by massgopguy (I owe everything to George Bailey)
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To: Sub-Driver

No thanks, I remember my father having to leave the house at 5:00 AM to get on a line to buy gasoline. One poor fellow died of carbon monoxide poisoning waiting to fill up.

Restricting profits will lead to a reduced supply.


45 posted on 01/19/2012 12:09:01 PM PST by Kenny500c
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To: Above My Pay Grade

I propose a rope and a tree at high noon.


46 posted on 01/19/2012 12:09:18 PM PST by BuckeyeTexan (Man is not free unless government is limited. ~Ronald Reagan)
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To: FlingWingFlyer

Maybe a congressional reasonable congressional return on investment board. Impose a 100% tax on investment income over and above say the “reasonable” rate of return the average joe expects from his/her social security contributions.


47 posted on 01/19/2012 12:09:42 PM PST by hawgwalker
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To: Sub-Driver
Oh, yah, everyone there knows that the oil and gas companies just stuff the extra cashola into the corporate mattress. They wouldn't dream of doing anything with it, like bumping up the dividend or plowing it back into developing new oil and gas fields...

(Gawd, my head hurts.)

48 posted on 01/19/2012 12:13:01 PM PST by danielmryan
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To: AU72
"And I propose Congress set up a 'Reasonable Profits Board' to regulate the entertainment industries profits. I've had it with the price gouging of "Big Entertainment".

And we really need a "Reasonable Profits Board" to assure that the news media doesn't make too much money - they should be reporting the news as a public service! /sarc

49 posted on 01/19/2012 12:13:29 PM PST by In Maryland ("Truth? We don't need no stinkin' truth!" - Official Motto of the Main Stream Media)
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To: Michael Barnes
In the instant before she saw it and her scream cut the voices of the crowd, she knew that she had known that which she was to see. In a break between mountains, lighting the sky, throwing a glow that swayed on the roofs and walls of the station, the hill of Wyatt Oil was a solid sheet of flame.

Later, when they told her that Ellis Wyatt had vanished, leaving nothing behind but a board he had nailed to a post at the foot of the hill, when she looked at his handwriting on the board, she felt as if she had almost known that these would be the words: "I am leaving it as I found it. Take over. It's yours."

50 posted on 01/19/2012 12:15:28 PM PST by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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