Skip to comments.Dems propose 'Reasonable Profits Board' to regulate oil company profits
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.).
Wow. Beyond parody.
Can’t they tell the difference between profit and profit margin?
So who is making a windfall here.
I hate these people. They must be destroyed!
Government is stripping our money and our rights by the trillions and this idiot worries about some company making money. Hey, dingbat, leave congress and boycott whatever company you choose. If only the rest of us could boycott the government bully on the corner.
Directive 10-289 should be countermanded by Rule 308
Going back to basics, how about a Congressional excess profit board for congressmen and women? Say...they get to keep only what they are paid, not able to prpofit one red cent from investments while in office and for a specified time therafter?
Especially proud of our passive populace.
Any word on the Reasonable Taxes Board? If the 7%-8% profit on gasoline is obscene what do we call the 15%-20% tax?
1. High union officials joining the government to run the country.
2. Agricultural surpluses diverted to idiotic, non-productive schemes.
3. Taxpayers' money wasted to support failing corporations that are well-connected.
4. National wealth sent overseas to support failing socialist governments.
5. Widespread unemployment combined with a sense that someone should be given a job because he or she "needs" it.
6. Failing financial institutions that declined to separate a profitable investment from a popular one.
7. Entertainers producing incoherent crap that is foisted on the public as daring and creative.
8. Productive entrepreneurs taxed out of business in the interest of unproductive dinosaurs who have government figures on their payroll.
9. A general national sense that something has gone terribly wrong, fed by government scapegoating and avoidance of responsibility.
10. A sycophantic press prostituting their integrity for a slice of power.
11. A parasitic sub-culture convinced that the only reason it isn't rich is that someone else is stealing from its members, who by right ought to prosper with no effort as a birthright.
12. A well-fed, arrogant ruling class whose first responsibility is to see that the trough is full for its own good and that of its supporters, willing to drag the country down so long as they are the last to go hungry.
Maybe we'd be more comfortable by ignoring the whole thing. The government will provide. Trust the government.
I swear they must be using Atlas Shrugged as a guidebook.............
I was thinking of starting a board called “The Reasonable and Prudent White House Expenditure Board” to regulate the expenses for White House party’s, vacations, plane travel, staff, and renovations.
Yep, that sounds about right.
Hey comrades, that sounds good.
No kidding....How AMERICAN’s aren’t OUTRAGED and in the streets calling for Dems to be Ousted in mass is beyond me. I wonder who they would pick to head the Committee? Someone from the Occupy movement?? OBAMA MUST BE DEFEATED in NOVEMBER!
Wow, wasn’t the excess profits tax, a Jimmy Carter invention?
I just saw this headline in the sidebar. My first reaction was “of course.” If anyone wants proof that the democrats are communists, this is it. The problem is, most of our economically and politically ignorant electorate will think its a good idea.
beat me to it...last i recall the fed tax, not counting all other leeching entities, is nearly double the profits that the companies get to keep...???
theres a reason pols used to be tarred, feathered and used as lampost decor...
How about a Congressional Responsibility Board which would enforce a statute that Congressional salaries are zeroed out in any year in which the Federal Government spends more than it takes in.
Do you remember seeing that tape of Maxine Waters saying that “We are going to take over the oil companies, we are going to socialize the oil companies” Well, this is as close as they can come right now, take over the profits of the oil companies.
Holy sh!t I hate these effin douchenozzles. Regulate oil company profits? These companies (and their shareholders) take all the risk, do all the work, fight the gubermint interference and tree-hugging douches along the way, and MAYBE eek out ten cents per gallon profit for providing an essential product. Then, AFTER THROWING UP ONE ROADBLOCK AFTER ANOTHER between the company and its dime, these hypocrites STEAL anywhere from what, 30-60 cents per gallon depending on which state you're in?
Why don't they tell WE THE PEOPLE the truth for a change. Gubermint the greedy thief here...lining its pockets for doing NOTHING. That they have the brass balls to villianize the oil companies over gas prices is unforgiveable. /rant off
How are they going to “control price”? No one can do that.
They’ll probably get their way. This is Obamaland after all.
Now go pay your taxes - your government is broke. :)
I believe this is exactly what happened when "price controls" were put in effect on gasoline in HI, and of course, there's the classic example of NYC's "rent control."
Exactly what came to my mind!
“does not the govt collect more from the sale of a gallon of gas than the oil company makes in profit?”
You aren’t supposed to mention that!
You don’t want to be sent off for re-education, do you?
Speak carefully, comrade!
Somewhere between Atlas Shrugged and 1984.
another creep towards MARXISM by the MARXISTS in Washington.
I propose that the communist scum be run out of office !
From Exxon-Mobil 2010 annual report
Total Revenue - 383,221,000,000
TOTAL TAXES - 86,226,000,000 - 22.5%
Net Income - 30,460,000,000 - 7.95%
My current level of bile is unprintable at this time.
This isn’t Marxism, it’s Fascism.
I’m shocked nobody started using the word back in 2008. When the government starts ‘owning’ businesses, you end up with Fascism.
This is from Wikipedia, but it’s solid:
“Fascism supports a socially united, collective national society and opposes socially divided class-based societies (including liberal bourgeois and Marxian proletarian class-based societies) and socially-divided individualist-based society. Fascists claim it is a trans-class movement, advocating resolution to domestic class conflict within a nation to secure national solidarity. While fascism opposes domestic class conflict, it favours a proletarian national culture and claims that its goal of nationalizing society emancipates the nation’s proletariat, and promotes the assimilation of all classes into proletarian national culture. It opposes contemporary bourgeois class-based society and culture for allegedly being based on selfish and hedonistic individualism that results in plutocracy and war profiteering at the expense of the nation. Fascism claims that bourgeois-proletarian conflict primarily exists in national conflict between proletarian nations versus bourgeois nations; fascism declares support for the victory of proletarian nations.
Fascists advocate: a state-directed, regulated economy that is dedicated to the nation; the use and primacy of regulated private property and private enterprise contingent upon service to the nation or state; the use of state enterprise where private enterprise is failing or is inefficient; and autarky. It supports criminalization of strikes by employees and lockouts by employers as illegal acts it deems these acts as prejudicial to the national community as a whole.”
ConocoPhillips 2010 Numbers:
Total Revenues = $198,655 million
Total Taxes = $25,126 million (12.6%)
Profit = $11,358 million (5.7%)
Consolidated Statement of operations ConocoPhillips
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Whoa, sounds like something straight out of “Atlas Shrugged”!
The real “1 percent” in the U.S. is the political class and the federal bureaucracy. Their greed is unmatched and won’t end until they’ve killed the golden goose.
This is crazy...thanks for the heads up.
Will they also impose that on Apple?
Oh, sorry, those are Democrat-protected industries.
We need to regulate the rats pay in government
Beat me to it.
...drill for more oil and refine more gasoline, RIGHT?
Oh, nevermind. They not only DON'T give a damn, they WANT gas prices to go higher, so that they can have a convenient scapegoat and impose yet more governmental control over private industry and activities.
I don't own any stock in any oil company, nor am I associated in any way with it except as a customer, and I can say without any doubt that the oil companies are entitled to any profits that they can honestly earn. If one company tries to gouge too much, its competitors will eat it for lunch. But the moment the Dems get involved, the prices go through the roof due to stifling regulation and fear of the future. I'd be way too charitable to call the Dems "morons," and I'd be insulting actual morons, to boot - but they never seem to learn.
LOL! DU Trolls have no idea what we're talking about.
I'm expecting a recess appointment for Wesley Mouch during the next Congressional break.
Actually ladies & gentlemen this is not StalinismI it is in fact right out of the Mussolini Italian fascist playbook. The government will determine what is sold, at what price,at what profit margin & so-called excess profits are seized by the state ie a slush fund for crooked politicians. We have seen this crap before & it ends real ugly.
They need to have a reasonable lose board for most of the time-for oil,coal,steel,farming,forestry and every stinkin thing else we try to do!
These people are traitors and should be first tried, then hung on the Capitol Steps for their crimes.
The very fact that someone in congress can even suggest this without them being immediately hung from the nearest tree is ample proof that we are done as a free country.