Windfall Taxes

So this is one of BO's big ideas on how to solve our energy issues... what are the good points in your eyes and bad points?

If you're talking specifically about windfall taxes on Oil Companies for 'making too much money', I think one of the downfalls of this is doesn't it ultimately come out your 401k (or whatever retirement planning you have) if you have stock options in the Oil Companies? Aren't the oil companies publicly traded? Don't they have an obligation to their share holders to make a profit? Wouldn't a tax on them have a negative impact on us? (Sorry to answer your question with questions.)

How much government subsidy does the Oil Industry receive from the government... don't tax windfall, just eliminate subsidy for this industry.

I'm talking in general.. I think the idea of a "windfall" tax is just stupid, and partially Unamerican. If you develop something and it makes millions why should you pay a higher tax just because of what it is?

Now that farmers are starting to turn profits.. shouldn't we tax them higher, after all, their profits mean our food costs will go up. It's the same idea as the windfall tax on oil, our prices increase and they make more, so let's tax them.

I like meta's idea of eliminating subsidies.. it's not like they need it. But.. on the flip side, it goes back to my stance on windfall taxes.. if you implement a tax, it's not going to lower prices, it'll raise them. If we eliminate subsidies, it'll raise prices, not lower them.

Look at it this way.. if you net $10/unit on a good you sell, and then the Gov't taxes it so people will buy less (in theory) are you going to eat the lost money, or figure out how to raise your profits back to where they were?

cardinal5150 wrote:I'm talking in general.. I think the idea of a "windfall" tax is just stupid, and partially Unamerican. If you develop something and it makes millions why should you pay a higher tax just because of what it is?

Now that farmers are starting to turn profits.. shouldn't we tax them higher, after all, their profits mean our food costs will go up. It's the same idea as the windfall tax on oil, our prices increase and they make more, so let's tax them.

I like meta's idea of eliminating subsidies.. it's not like they need it. But.. on the flip side, it goes back to my stance on windfall taxes.. if you implement a tax, it's not going to lower prices, it'll raise them. If we eliminate subsidies, it'll raise prices, not lower them.

Look at it this way.. if you net $10/unit on a good you sell, and then the Gov't taxes it so people will buy less (in theory) are you going to eat the lost money, or figure out how to raise your profits back to where they were?

I agree... implementing windfall taxes against oil companies is dumb. The Only way windfall taxes will lower gas prices is if we give that money back to oil companies in the form of subsidies.... it's a bad idea.

Almost every other business makes more profit per dollar than oil does. Tax a hedge fund or GE before you touch tax oil. Mccain should tax beer as well. This would destroy the economy.