« | »

GOP Block Dem Tax On ‘Windfall’ Oil Profits

From those energy experts at the Associated Press:

Vehicles line up for diesel at a gas station in Baokang, Hubei ...

Vehicles line up for diesel at a gas station in Baokang, Hubei province April 30, 2008. After nearly exhausting its oil policy toolkit, Beijing has one last gambit to help it bolster oil company profits and avoid a painful rise in fuel prices before the Olympics — relaxing its windfall production profit tax.

Senate blocks plan to add oil company tax

WASHINGTON (AP) — Senate Republicans have blocked a proposal to tax oil industry windfall profits.

With gasoline prices topping $4 a gallon, Senate Democrats wanted the government to grab some of the billions of dollars in profits being taken in by the major oil companies.

Senators voted on whether to consider a windfall profits tax against the five largest U.S. oil companies and rescind $17 billion in tax breaks the companies expect to enjoy over the next decade.

“The oil companies need to know that there is a limit on how much profit they can take in this economy,” said Sen. Richard Durbin of Illinois, the Senate’s No. 2 Democrat, warning that if energy prices are not reined in “we’re going to find ourselves in a deep recession.”

But the Democrats had to try to overcome staunch Republican opposition to any new taxes on the oil industry. The five largest U.S. oil companies earned $36 billion during the first three months of the year.

Majority Leader Harry Reid, D-Nev., needed 60 votes Tuesday to proceed with the oil tax legislation in the face of a threatened GOP filibuster.

Didn’t the Democrats learn anything from the Carter ascendency?

From Wikipedia:

Windfall profits tax

The Congressional Research Service has analysed that the windfall profit tax brought in $80 billion in extra revenues for the United States government, which was far less than the projected $393 billion. Also, domestic oil production by oil producers was said to be lowered.

And please note the Reuters caption to the photo at the top (for another article):

Beijing has one last gambit to help it bolster oil company profits and avoid a painful rise in fuel prices before the Olympics — relaxing its windfall production profit tax.

So what do the Communist Chinese know that our Democrats in Congress don’t?

This article was posted by Steve on Tuesday, June 10th, 2008. Comments are currently closed.

25 Responses to “GOP Block Dem Tax On ‘Windfall’ Oil Profits”

Sorry, comments for this entry are closed at this time.


« Front Page | To Top
« | »