I have mixed feelings on this one!

[justadude]

Part of me say we as a country could use the tax rev, but the other part feels like it's a fine for making money in an up time for a business.

http://news.yahoo.com/s/ap/20080610/ap_on_go_co/congress_oil_profits

 

[justadude]

Wow I'm suprised that not one person had a comment on this.

 

[ruffryder]

I think no one responded because it shows that a democratic controlled senate and house still can't get what they want passed, contrary to what a lot of people on here believe.

I like this part of the bill though

It also would have given the government more power to address oil market speculation, opened the way for antitrust actions against countries belonging to the OPEC oil cartel, and made energy price gouging a federal crime.

That part above should have been on it's own.

I find it really interesting that if we tax them more, prices will go up, but if we gave them tons of money, does anyone really think that prices would go down? I don't.

 

[Good to Go]

Best explanation as to why it's a bad idea, from another thread:

What most politicians fail to understand is that businesses don't pay taxes.....My customers pay my taxes.




a requirement that all new members of congress take an economics class might make a difference.

So, we tax big oil for making money...they are still going to make money, so they raise the price to pay the new tax. You are paying it. Hasn't solved a thing, but some loco politician will get more votes because of another 'feel good' measure no doubt...and people fall for it.

 

[ruffryder]

So, we tax big oil for making money...they are still going to make money, so they raise the price to pay the new tax. You are paying it. Hasn't solved a thing, but some loco politician will get more votes because of another 'feel good' measure no doubt...and people fall for it.

I totally agree and understand that, but the thing that I don't understand is if we gave the big oil companies 300 million dollars each, no strings attached, would prices go down right away ? I don't think they would. If the answer is to add strings, you are just subsidizing the cost.

 

[Ollie]

I totally agree and understand that, but the thing that I don't understand is if we gave the big oil companies 300 million dollars each, no strings attached, would prices go down right away ? I don't think they would. If the answer is to add strings, you are just subsidizing the cost.

Do you pay for the oil companies to drill looking for oil?
No.
That comes off the top. Now right now they are seriously raking it in, however, back when oil was 35 dollars a barrel I didn't see you offering to help offset their costs. They were loosing billions looking for oil.

Until we can force the dems to let the companies drill offshore, anwar and a few other places they want, you won't see much difference.
People don't want E-85 cause it's icky or some such nonesence.
People don't want to let them drill.
People don't want to see them make a profit.

Now I wonder why oil is so expensive.

 

[milehighassassin]

I don't think we should be subsidizing them but I do know they pay a $hit ton in taxes.

$40 Billion (gulp...) in PROFITS...

$30 billion (gulp) paid in TAXES.


So to their defense they pay a ton of taxes but they are making tons of money.

How pissed would you be if you made $70,000 gross and then paid out $30,000 in taxes after that?

 

[ruffryder]

I don't think we should be subsidizing them but I do know they pay a $hit ton in taxes.

$40 Billion (gulp...) in PROFITS...

$30 billion (gulp) paid in TAXES.


So to their defense they pay a ton of taxes but they are making tons of money.

How pissed would you be if you made $70,000 gross and then paid out $30,000 in taxes after that?

Shouldn't that be net 70k? Is the profits they are talking about gross or net? I assume it would be net. I would gladly pay 30K to net 70K, gross of 100K.

Or am I all screwed up here?

 

[milehighassassin]

Shouldn't that be net 70k? Is the profits they are talking about gross or net? I assume it would be net. I would gladly pay 30K to net 70K, gross of 100K.

Or am I all screwed up here?

They reported $40 billion in profit and on top of that paid $30 billion in taxes.

So after operating expenses were removed they made $70 Billion and then paid $30 billion in taxes giving them $40 billion take home.


Is that clearer?

Yes, their profits are always net. God can only imagine what they truly grossed.

 

[ruffryder]

Is that clearer?

Crystal.