Unsurprisingly, the plan is about taking profits from companies and redistributing it
Rep. Ro Khanna and Sen. Sheldon Whitehouse are pushing a bill they say will help bring relief from high gas prices to Americans – as energy industry critics argue it would do the exact opposite.
The proposal, which comes as Russia’s war on Ukraine delivers a shock to global energy prices, is called the “Big Oil Windfall Profits Tax.” According to Khanna, D-Calif., and Whitehouse, D-R.I., the bill would levy a tax on oil barrels sold by large producers “equal to 50 percent of the difference between the current price of a barrel of oil and the pre-pandemic average price per barrel between 2015 and 2019.”
The money from that tax would be sent to consumers as a quarterly rebate, according to a description of the bill, with a cutoff for single people making $75,000 or more and families making $150,000 or more. (snip)
The tax would only affect to companies that extract over 300,000 barrels of oil per day, applying to oil extracted both domestically and worldwide, according to a press release from Khanna’s office. That threshold would exempt “[s]maller companies accounting for roughly 70 percent of the domestic production… so oil giants like Exxon Mobil and Chevron cannot simply gouge consumers further without the threat of losing market share,” it said.
“We’ve seen this script before, and we cannot allow the fossil fuel industry to once again collect a massive windfall by taking advantage of an international crisis,” Whitehouse said. A press release from Whitehouse and Khanna said the increase in gas prices, “is not justified by increases in the cost of domestic production, but is driven by international markets controlled by fossil fuel cartels.”
Tell me you don’t know how the commodities market works without telling me you don’t know how it works. Oil companies are not setting the prices. They generally make around 10 cents on the dollar. And this bill would be immediately litigated, and the 1983 Ptasynski v United States may well be revisited on the constitutionality. Don’t think the oil companies will sit there atnd take it.
Energy industry representatives, however, are pushing back against the proposal, arguing that it may have the exact opposite of its intended effect.
“Policies like a so-called windfall profits tax are misguided and would likely backfire by further driving up energy costs for American families and businesses,” American Exploration and Production Council CEO Anne Bradbury said.
Well, this is what Democrats think is wise policy, and, really, they do not care if it drives prices up, because they get to redistribute money, gaining voters who are beholden to government.
Right now there are more oil rigs drilling (650) than at any time under Trump. 2 years ago when oil was super cheap Trump asked OPEC+ for drastic oil production cuts they gave him the biggest decreases in history. Trumps last year we averaged 11.2 million bpd We currently average 11.6
Berkshireagle.com
March 12 2022
By associated press
Good job at history and economics again, John. For whatever reason Trump asked for production cuts, we were energy independent, so fuel prices hardly changed at all. However, under Brandon they’re skyrocketing…
Hairy is lying to you. Again.
He keeps up this mantra and its just not true.
In 2018 there were over 1000 oil rigs running. Under Obama at the end of his second term there were nearly 1200 oil rigs running.
Why did Trump ask for those oil production cuts?
RUSSIA and SAUDIA ARABIA started ramping up production over and over again because OIL was so cheap and BOTH RELY on OIL to Survive.
Finally, they both relented as they simply drove down the price of oil the more they produced, which in turn forced dozens if not hundreds of smaller oil companies to close down.
AGAIN HAIRY IS SIMPLY FAKE NEWS.
Facts Matter people. Hairy ignores facts because they are inconvenient.
On 8 March 2020, Saudi Arabia initiated a price war on oil with Russia, facilitating a 65% quarterly fall in the price of oil. In the first few weeks of March, US oil prices fell by 34%, crude oil fell by 26%, and Brent oil fell by 24%. The price war was triggered by a break-up in dialogue between the Organization
Raising the taxes on oil companies raises their COST of doing business. Staying in business requires businesses to set their prices higher than their costs.
So, this would be a means of raising taxes on the consumer, while keeping their anger focused on “Big Oil”, rather than “Big Government”.
Not only raising prices, it hurts the performance and distributions from the companies which adversely effects all in the US as almost everyone owns a piece of these companies in pension plans and other areas.
Then there is the fact that climate change is a hoax.
Nancy been day drinking…
Really now.
https://thepostmillennial.com/pelosi-government-spending-reducing-national-debt-not-inflationary?utm_campaign=64487
#LetsGoBrandon
#FuckJoeBiden
Bwaha! Lolgf
Never forget: The objective of every company is monopoly. This is good for profits and shareholders, but less good for consumers.
Where there is actual competition, if one company, let’s say Exxon, is forced to pay a tax that Joe’s Oil Company does not, if Exxon raises prices to cover the tax, Joe’s Oil can outcompete them. That’s the way regulated capitalism should work. To just allow a corporation, by any means necessary, to become a monopoly is not capitalism, except in its rawest form. And that serves only the wealthy (or the Donor Class or GOP).
So yes, tax major multinational corporations to help America’s working men and women. Who knows, we may able to narrow the divide between America’s Two Nations, one poor, one wealthy.
Jeff just dumped a huge turd of misinformation and his usual stupidity. If you begin exchanging comments with him he will work to say as much hateful and mean as possible. The guy really is psychotic, just ignore.
Rimjob: Never forget: The objective of every company is monopoly. This is good for profits and shareholders, but less good for consumers.
Guess the boy forgot about that with um… his company.
#LetsGoBrandon
#FuckJoeBiden
Bwaha! Lolgf
You mean the company with only one drug and no one understand stats. Yet he spends all his time here.
ShitLips is speaking out of his, um… someone’s ass.
davebot2000 is a Russian GRU bot programmed for spreading disinformation for its master, Putin. They are all over the internet now including facebook, instagram and twitter.
dOwd. “Never forget: The objective of every company is monopoly. This is good for profits and shareholders, but less good for consumers.”
So where did you get that tidbit of bullshit, Communist Economics for Dummies? The objective of every company is PROFIT. Perhaps in the twisted mind of a free market hating commie pig their objectives become “monopoly” but seldom in real life. Plus the fact that most companies who have been or functioned as a monopoly have done so because of government rules or government incursion into the market.
dOwd: “That’s the way regulated capitalism should work. To just allow a corporation, by any means necessary, to become a monopoly is not capitalism, except in its rawest form. And that serves only the wealthy (or the Donor Class or GOP).”
Ya know dOwd you’re a lot of things, but a business expert or economist are not on the list. Stating “just allow a corporation, by any means necessary, to become a monopoly” shows your ignorance. Who would be doing this “just allowing”? Government is the answer in case you’re not listening. All communist countries organize their industrial and business models as Monopolies and they are all controlled by said communist government. Monopoly is not the “rawest form” of capitalism, it’s the business model for socialism and communism specifically. You are correct in that they serve only the wealthy but you believe communism somehow will equalize everybody. How’s that workin out in NK, China, Cuba etc? BTW unless you’ve been asleep or on drugs (likely) for the last three decades you “donor class” is now fully a elite sect of the Democrat party. Oh, along with the pervert class too. There are more super rich leftists than rightists so don’t try and bull shit us.
dOwd: “So yes, tax major multinational corporations to help America’s working men and women. Who knows, we may able to narrow the divide between America’s Two Nations, one poor, one wealthy.”
In you final and failed effort to pretend you’re an economist you encourage taxes as the Great Equilizer between rich and poor. WHEN HAS THAT EVER WORKED? Name the country that taxed itself into prosperity and taxed itself out of poverty. Just one.
Taxes, you economic and ignorant fool, are considered Expenses to businesses and every dime in business taxes is part of the debit side of the ledger. Therefore, taxes cause prices TO RISE therefore HURTING NOT HELPING the poor. Taxes also ADD NO VALUE to any product or service and therefore are INFLATIONARY.
Get your head out of your ass and read a non-communist approved economics book or for the love of God turn off NPR.
Lets go Brandon, triple taxes and “fix” poverty, equity and inflation. Go ahead, Adam Smith, Freddy Hayek, Tom Sowel and I dare you.
On 20Mar2020 the US produced 13,000 bbl/day, according to the U.S. Energy Information Administration. Production started to drop as the china virus took hold and we are just now returning to production levels of November of 2018.
According to Baker-Hughes and U.S.EIA, there were 771 rotary rigs turning in March of 2020. That figure dropped to a low of 250 by August of 2020, deep in the china virus panic.
It takes time to get crews and equipment back to work, even with current crude prices.
Slight correction, it was 13,000 THOUSAND bbls/day.
missed that, sorry.
Slight correction, the production figure is 13,000 Thousand bbls/day.
Missed that, sorry.
A slight correction, the figure should be 13,000 Thousand bbl/day.