A “Reasonable Profits Board” would not stop with the oil and gas industry
Really, where do these Democrats get off targeting one specific industry as evil and unreasonable since they – by some arbitrary decree – think the industry makes too much money?
Really now, please tell me. If it is constitutional for the federal government to create a board that would arbitrarily determine that the oil and gas industry have “made enough money,” and implemented a 100 percent tax on “excess” profits, what would stop them – or any state government for that matter – from doing this to any other industry?
Damn communists, all of them. From The Hill.
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 nutcase who has introduced this legislation three days ago is Dennis Kucinich (D-Ohio). The five co-sponsors are Rep. John Conyers (D-Mich.), Rep. Bob Filner (D-Calif.), Rep. Marcia Fudge (D-Ohio), Rep. James Langevin (D-R.I), and Rep. Lynn Woolsey (D-Calif.).
If you’re so inclined to read this garbage, The Hill has the PDF of the proposed legislation.
The top three (Market Cap) oil and gas companies, Exxon Mobil, Royal Dutch Shell and Chevron, have net profit margins for the past year that average 7.7 percent.
Hewlett-Packard and Dell are at 5.56 percent and 4.28 percent respectively. Apple’s net profit margin is 23.95 percent. Microsoft is at 33.1 percent.
Political. Grandstanding. Bull Feathers.
17 Comments
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As you point out, Congress does not appear to care about Apple or Microsoft’s profits. However, how about a windfall tax on the profits of movies? Would the Hollywood elite want that? Congress- ” Free the Market” or WE will have no market left.
Is there anything slightly totalitarian in the government getting to decide what is a reasonable profit?? Will the huge profits from leftist Hollywood “blockbusters” be considered excessive?? Will marginal profits profits of small struggling businesses be subject to reduced taxes?? (just to make it ‘fair’)? Why does anyone support Barack Obama?
Wait until the Democrats start issuing waivers for this law to “special” companies, union bosses and any big donor to their campaigns.
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And we all know who decides what is “reasonable”, don’t we?
Communist central planning never worked – except as a major disincentive to act aggressively in certain industries. If production goals are set for you then there is no need to excel, no need to experiment, no need to grow. (In fact there is incentive to do nothing and fake the production numbers) Do not underestimate the Machiavellian energies of The O, who would happily see America lose its energy independence completely, to be replaced by government rationing. Marx would be buffing his golf shoes……? ? ? ?
If the government is going to decide what are reasonable profits, are they also going to decide what reasonable losses are too?? And if these companies are suffering losses is the government going to subsidize them in those years?
Maybe good old Maxine is getting her wish.
:http://www.youtube.com/watch?v=PKh7uqucArk
Can you say Hugo Chavez any one?
Or for you viewing pleasure:
http://www.youtube.com/watch?v=QbAQFF6bMmo
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Here’s the problem.? Gasoline prices are on the rise once again…no new deep water drilling in the Gulf, unrest in Libya, Iran threatening to close the Straits of Hormuz,?not to mention, the death of the Keystone XL pipeline.? All of the above will drive gasoline prices higher.? But, this is an election year, and, that will never do.
Enter the “Reasonable Profits Board”.? Of course, it will never pass, but the President will campaign on it in an attempt to quell citizen unrest over?the inevitable ever increasing gasoline prices, i.e., blame someone else, in this case, the oil companies.
Soon we will hear of the “Equalization of Opportunity Bill”, the “Bureau of Economic Planning and Natural Resources”, the “Fair Price Bill”, and the “Anti Dog Eat Dog Rule”.
Atlas Shrugged anyone?
I beg to differ: deep water drilling is ongoing in the Gulf (even BP received a permit to drill even deeper than the famous disaster well), Libya is quiet, Iran will not dare to close the Straight of Hormuz (otherwise it would have acted already) and the XL pipeline is not dead (the CEO said that much on The Kudlow Report this week). Maybe gas prices will go up, but not because of the above.
Thanks, sammy.? Would you mind giving me the link to our government’s approval of a BP Gulf well after the BP oil spill so I can use it in future posts?
John Conyers and Dennis Kucinich are both nut-jobs, and I’me sure that their cosponsors are just as loony, but why don’t anti-American morons like these get their dumb butts voted out of office? ?I’d be ashamed to call one of these clowns my elected Representative. ?Of course this is only a PR stunt, but it does show us how RED some of our Congressmen really are!??
Why not a “Reasonable Taxation Board”?? The government profits more on fuel and cigarettes than the “Big Businesses” that actually make the products; but the media never demonizes “Big Government” for their greed.? Too bad Dem voters don’t see that the taxes are only passed along at the pump and are bundled into every daily purchase you make.?
The Reasonable Profits Board already exists in the health care industry.? Obamacare defines what health insurance companies are allowed to make in gross profit (after paying the providers…doctors, hospitals, etc.) and from that gross profit, the company has to pay?? for salaries, rent, electricity, telephones, unemployment insurance, workers comp, payroll taxes, benefits for its employees corporate taxes, etc.? In addition, the insurance company must pay for its computer system changes to comply with Obamacare as well as any resulting directives issues from Health and Human Services.?
And how much, you might ask, is the gross profit percentage?? Between 15-20%…much less than Microsoft and Apple’s NET profit.?
So, now the government gets to decide who wins and who loses in the “reasonable profits” game…..
Here is a link, there are more: http://www.nola.com/politics/index.ssf/2011/10/bp_wins_first_gulf_of_mexico_d.html
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I hope that ? isn’t throwing us a pre-election “bone” to gain Gulf State votes.
Pandering by the ??
The?Gas Price Spike Act,?H.R. 3784, is just another example of the Regime’s socialist agenda in action. Demonize the evil capitalist activities of one business group while ignoring others. It is merely political theater designed to draw attention away from ?bama’s dismal record of trashing the economy and his rapacious spending. (Another $1.5 billion for the debt limit!)
Look for more Dem wacky bill proposals in the coming weeks and months to give ?bama stump material.
More class envy drivel… oil company version version.? It would follow that over-regulating the revenue of any industry would have a negative effect on the supply of its commodity thereby driving up its price.? Government isn’t stupid but they are playing to the stupidity that their speeches and actions show they assume about us.? The constitutional nature of such proposals are likely beside the point as long as us pathetic sheep accept the premise of advocacy that such rhetoric is intended to establish.? Actions speak louder than words and the policies of the administration show just how little its members care about the middle class.? Cultivating outrage at “unreasonable profits” draws attention away from their record which should rightly generate outrage.? We’d care less about such things if we had full employment and a strong economy however that’s just another perfectly good crisis not to be wasted.? Who dons the villain’s costume next?
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please–let’s not be distracted by smoke and mirrors–this is not about limiting profit–it’s about diverting a proven pipeline of revenue to the federal gov’t.? once this hurdle is cleared, any business or industry is fair game as unanticipated needs and unexpected consequences arise.? every journey begins with a single step. . .
ps–while bp was issued a permit, there is no evidence of drilling–the most recent news i could find was 12/14/11–said they were going to resume, but i haven’t found confirmation–even through bp