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.).
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.