Windfall Profits Tax = The State decides how much profit a business can make. If they are making ‘too much’ – the State then gets to take that profit away and redistribute it. That’s abject big government Socialism/Marxism wealth redistribution.
Obama conveniently failed to mention oil companies profit margin. Also, he neglected the fact that companies like Exxon Mobil already paid 3 times as much in taxes in 2007 as they made in profits. And finally, these sort of ads seems to be assuming that oil companies only make money for a few sleazy suit-clad men sitting around at a board meeting. What they don’t point out is how many thousands and thousands average joe worker jobs there are in the oil industry.
Speaking of Windfall Profit Taxes, here’s what happened when President Carter tried them:
The Congressional Research Service called it total failure. I guess none of that matters though, because it sure feels really good to tax those evil oil bastards. Here’s a little more on this crap from the WSJ:
The “windfall profits” tax is back, with Barack Obama stumping again to apply it to a handful of big oil companies. Which raises a few questions: What is a “windfall” profit anyway? How does it differ from your everyday, run of the mill profit? Is it some absolute number, a matter of return on equity or sales — or does it merely depend on who earns it?
If Senator Obama is as exercised about “outrageous” profits as he says he is, he might also have to turn on a few liberal darlings. Oh, say, Berkshire Hathaway. Warren Buffett’s outfit pulled in $11 billion last year, up 29% from 2006. Its profit margin — if that’s the relevant figure — was 11.47%, which beats out the American oil majors.
….consider Google, which earned a mere $4.2 billion but at a whopping 25.3% margin. Google earns far more from each of its sales dollars than does Exxon, but why doesn’t Mr. Obama consider its advertising-search windfall worthy of special taxation?
…..The point is that what constitutes an abnormal profit is entirely arbitrary. It is in the eye of the political beholder, who is usually looking to soak some unpopular business. In other words, a windfall is nothing more than a profit earned by a business that some politician dislikes. And a tax on that profit is merely a form of politically motivated expropriation.
It’s what politicians do in Venezuela, not in a free country.
Here’s our good ole’ buddy Speaker of the House Nancy Pelosi babbling on about why she won’t allow a vote on drilling:
Gotta love her plan: We will release the Strategic Oil Reserve which will make prices go down…and then what? Not to mention – what happens if we need that oil, for you know – strategeries or something. (Isn’t she basically admitting that it’s a supply problem anyway?) Also – force the oil companies to drill where it won’t be profitable. Like I said before, why not open a tanning salon in the middle of the Sahara while you’re at it and see how that works out? Plus, somehow opening up drilling around the US won’t make price go down in a more lasting fashion than opening up a little reserve tank that we have here in the states?
Like I said before, I don’t think ONLY DRILLING will solve the problem. But I do think we need to do everything possible to fix the problem.