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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.).
In addition look at the other taxes on the products made from oil and gas. What about the state a local gasoline taxes, sales taxes on tires, plastic products of all sorts, some drugs, etc. The oil companies do indeed subsidize government in a large way.
Jimmy Carter tried price fixing and the results were terrible. They and Ronald Reagan made him a one term president.
Ping. Now a “reasonable taxes board”, that would make sense.
Anyone of either party that supported something like this, should be targeted for removal.
If a Republican participated, I’d like the Republican party to yank their party affiliation. Instead they’d be more likely to encourage them to run for president in four years.
So, are they going to introduce the
“anti-Dog eat dog” law?”””
Straight out of the pages of “Atlas Shrugged”, isn’t it????
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.”””
How much whing happened when the Feds got the use of cigarettes to drop?
“We need more money!!! We are not making the taxses anymore on cigarettes”!!!!!
The same thing will happen with this, but I think there have always been more drivers than smokers.
Let’s say the profit limit is 10%.
What does this mean for all of the non-oil companies with considerably higher profit margins?”””
You mean like Bain Capital ??????
Why wait for a congressional recess? We’ve already overturned that part of the constitution.
I'd really be surprised if it were that high. Do you have a cite for that figure?
Wow. The gall is astounding...
First, the oil companies make about 8% while apple pulls 30+%. Second, the gov takes in at least twice the oil company profits in taxes. Third, with Conyers as a sponser he directly attacking his constituents.
It is disgusting.
Just more nonsense From Idiots who don’t know what a profit margin means!
the time for extermination is near
If they start this, it's time to go and clean out the swamp before no one can afford to drive there.
No one wants their refinery to run dry, because no matter the cost of feedstocks, you can't make any money without product.
“Any word on the Reasonable Taxes Board?”
Relax, it’s coming down the line.
Except, it’s actually going to be called the “Pay Your Fair Share Committee”...
Not exactly petro related but many American companies in China can expect 16% return. The PRC Commies treat us better than the DNC.
Dead in the water from the first word...MR.speaker...
We need to regulate the government, not the private sector.
Point One: All workers, wage earners, and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment...Point Two: All industrial, commercial, manufacturing, and business establishments of any nature whatsoever shall henceforth remain in operation, and the owners of such establishments shall not quit, nor leave, nor retire, nor close, sell or transfer their business...
Point Three: All patents and copyrights, pertaining to any devices, inventions, formulas, processes, and works of any nature whatsoever, shall be turned over to the nation as a patriotic emergency gift...
Point Four: No new devices, inventions, products, or goods of any nature whatsoever, not now on the market, shall be produced, invented, manufactured or sold after the date of this directive...
Point Five: Every establishment, concern, corporation or person engaged in production of any nature whatsoever shall henceforth produce the same amount of goods per year as is, they or he produced during the Basic Year, no more or no less...
Point Six: Every person of any age, sex, class or income, shall henceforth spend the same amount of money on the purchase of goods per year as he or she spent during the Basic Year, no more and no less...
Point Seven: All wages, prices, salaries, dividends, profits, interest rates and forms of income of any nature whatsoever, shall be frozen at their present figures, as of the date of this directive. (But taxes will be allowed to increase as needed for the public good)
Point Eight: All cases arising from and rules not specifically provided for in this directive, shall be settled and determined by the Unification Board, whose decisions shall be final.
Freep-mail me to get on or off my pro-life and Catholic List:
Please ping me to note-worthy Pro-Life or Catholic threads, or other threads of general interest.
I know, AS was my immediate reaction before I even the post was from you. Hey, politicians, Atlas Shrugged is NOT an instruction manual!
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