So the government now gets to decide what a "reasonable" profit is? You seriously support this? Didn't the government try price controls and profit taxes back in the late 70's? From what I heard those did not go so well. What happened to the concept of freedom in this country? The land of opportunity where hard work can get you what you want? It is not the scope of the federal government to say one company cannot make more money for its investors and employees. That is just ridiculous.
The only thing I wish would happen would be to remove tax breaks for all companies. Oil companies do not need tax breaks, but neither do alternative energy companies. The government needs to butt out and let the companies perform on their merits.
I never thought I’d see the day ....
Yes indeedy, it is a total surprise the Grand Oil Party protects their Sugar Daddies. I'm hoping this is the straw that does it in November.
http://www.opensecrets.org/indus...stries/
mems.php
Hmm the top 13 Industries in terms of amounts given to Congress in 2008 gave more to Democrats than to Republicans. Somehow, none of these industries are posting "excessive" profits. This would include lawyers that bill their time at what $200 per hour or so?
And look how many have given the most to Mr. Obama. Wonder if he will owe any favors to his sugar daddies?
So the government now gets to decide what a "reasonable" profit is? You seriously support this?
I don't support that, actually, as I said in my Public Land, Public Resources post. But I do support the other elements of this bill: putting up more collateral in the energy futures market, investing in alternative energy and conservation, and making price gouging a crime.
And I think it's hilarious that the Republicans in the Senate are so out of touch with the American people that they are siding with ExxonMobil. They must really want to lose in November.
How would taxing Oil companies lead to a reduction in the price of gasoline? If I were the Republicans, I would be advertising that with gas at $4.00 per gallon, Democrats were voting to increase the costs to the tune of 25%. How stupid can Democrats be to vote for a tax increase as a way to lower gas prices? When TN increased the taxes on cigs, did they expect the price of a pack of cigs to go down? Increasing taxes on a business will only increase the cost of goods produced.
Now write up a bill that only removes the tax breaks for all companies and I would favor that. Tax rates should be the same for all industries and government should not be in the business of promoting certain businesses over others.
My thought is, a lot of the Senate Republicans know they are not getting re-elected in November, so they are grabbing the cash with both hands while they can.
After all, they need to work SOMEWHERE after they lose their seats. The oil companies need more lobbyists, you know!
When the demand for a product is inelastic, as is gasoline, maybe the government should do something to make the demand elastic, like teach people to take the bus. Then the profits of oil companies are not a discussion point. The auto companies were free to destroy the electric cars, even when they worked for the folks using them. That is free enterprise. India and China have been using more oil for years. Don't we have a goverment that was aware of that. I guess not. That is why we have gasoline at the current cost.
Jim,
Anyone who thinks there is true free market competition among energy comanies is a fool.
If that is the case, then why do the prices between different gas stations stay so close together? It isn't just the price they pay for the commodity. Global energy companies constitute a cartel who control price.
Furthermore, since the 1950s, oil companies recieve massive government subsidies and tax breaks above that given to other corporations. Perhaps they should just pay as much as other companies.
Oil companies aren't just a cartel, they're a monopoly. Imagine a lemonade stand where one person owns the lemon grove, the sugar plantation, the kitchen you make the lemonade in, the cups and the stand where you sell it.
There's no free market where gasoline is concerned. Conservatives like to look at everything through the simplistic lens of "supply and demand." It doesn't exist. In fact, the free market doesn't exist. It's controlled by thousands of factors, from U.S. trade policy to global commodities trading to a gazillion other things.
The world is not black and white, but people like Jim refuse to believe that, which is why they continue to vote Republican.
Casey - I agree that tax subsidies for companies is bad government. All of them should be removed for all companies. I dream of the day where my tax return is one line: income * tax rate = taxes owed.
SB - I vote Republican as the slightly lesser of two evils.
SB - I vote Republican as the slightly lesser of two evils.
I hear that a lot ... from Republicans!!! I'm sorry you can't be proud of your party. Must suck to wear that gas mask into the voting booth every election.
It is not my party - I am not registered with a party. Voting Republican is simply the best choice out of a group of bad choices. Look at how many people don't bother to vote at all. Most of them realize that it doesn't matter all that much which of the two current parties are in charge because Congress is run by the lobbyists now.
Commenting by HaloScan
