Dems propose 'Reasonable Profits Board' to regulate oil company profits

The Hill ^ | 3/1/12 | Pete Kasperowicz

[ColdOne]

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

[Publius]

Again, I don’t normally ping the “Atlas” list for a simple news item, but this one is right out of Wesley Mouch’s office.

[beethovenfan]

Oh yeah, that will REALLY help us increase our domestic production. These people have $hit for brains.

[reg45]

I don’t think that the profit made by an oil company on a gallon of gasoline should exceed the taxes paid on that same gallon of gasoline.

[justapicker]

That’ll help those gas prices.

After they eliminate depletion allowance and Intangible Drilling Costs.

Yep, that’ll help those gas prices.

God, please let whoever wins the GOP nomination articulate the real facts in a manner even the entitlement population can understand.

Oil & Gas = real jobs

Green = Solyndra, windmills, unicorns

[Popman]

I read though the article and fail to see how taxing windfall profits would lower prices at the pump since the oil companies have no incentive to made a lower margin...if everything over reasonable profits is taxed just how does that lower prices?

Only democrats have such asshats assumptions

[ponygirl]

Wasn’t this called the “Anti-dog-eat-dog bill” in the book?

[DUMBGRUNT]

Apple Computer has had a nice run up and most of their product comes from China, and I sold.

[trappedincanuckistan]

How many times does this scenario have to play out before people “get it”?

[jersey117]

Is there going to be a reasonable profits panel for Apple, Google and berkshire Hathaway as well?

[OkiMusashi]

Whuuut? Sounds like Dennis and the Dems think only Congress Critters get to “vote” on stuff like this.

LOL .... Okay, I’m ready. Hit me with your best shot, Dennis! I’ll “vote” that I need a vacation. I’ll run the wells every other month, “play” when they are down, and (I bet) STILL make as much money as I do now, because you’re “bright idea” will spike crude prices out of sight.

I’m pretty sure that I won’t be alone & We’ll just see who folds first. :)

Pass this bill! I Double Dog Dare ya!

[machman]

How about we lower the federal tax on gasoline first if we really care about “American families”?

[Jean S]

OMG bump!

[SAJ]

Nope. Anti-dog prevented one company from taking over another in the same or a related industry. Anti-dog is why Rearden had to cancel his option on and intended purpose of buying Fleming's copper property.

This piece of crap is more along the lines of the "Railroad Unification Bill", except that it doesn't have the goobermint setting **prices** directly, only profits. "Only" profits. As if there's any significant distinction over the medium term, eh? Sheesh.

[funfan]

And will this make the price we pay for gas go down?
No
Congress is corrupt

[Repeat Offender]

I was just going to ask if this was the early release of Part II.

[I see my hands]

We are getting what we deserve.

[Chgogal]

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

We the People have elected fools. We should be ashamed. FYI, CongressmenDumbA$$es, the more the Oil Companies make the more taxes you DumbA$$es collect.

Chgogal and five neighbors would like to set up a “Reasonable Spending Board” to control federal spending. Me thinks Congressman Mike Quiggley will get a call tomorrow.

[DustyMoment]

Here ya go, Dennis, try this idea - REDUCE the federal taxes on gas and oil. The government didn’t assume any risk in drilling; the government didn’t assume any risk in transporting the oil; the government didn’t asume any risk in refining the oil into gas; but the government consumes upwards of $0.50/gal in taxes for each gallon of gas sold.

By contrast, the oil companies get somewhere between $0.11 and $0.15 per gallon.

Sooooooooo, who should have to reduce their profit from the sale of gas???

(Since I know you aren’t too sharp, Dennis, here’s a hint - it SHOULDN’T be the oil companies!!)

[Chgogal]

Just in case some misunderstand my post, the more you tax the less you get.

[tet68]

What we are seeing is communism in action.
These guys should be hung for even suggesting
such a thing.