Windfall Profit Tax on Big Oil

[Berzerker]

I'm hearing some Democrats suggest they would hit the oil companies with a tax on their profits and "return" it to us little people. And yet the US Constitution forbids both Congress and the states the power to write retro-active (ex post facto) legislation. But the courts have decided this was a prohibition on criminal legislation, not tax legislation. They made that up too, when the Constitution restricts the states on this matter it offers this warning - ex post facto laws endanger contracts. Thats about money, raising taxes after the fact endangers existing financial commitments. Damocraps : 6 degrees of separation from Chavez?

[Dinner]

What have you been smoking? There are a lot of Republicans, like Rick Santorum, who are supporting the idea plus the windfall profit tax could be entirely avoided since any money invested in exploration or developing domestic production (or increasing pay to workers) could be deducted. I do think that there is to little competition and that the industry has consolidated so much that we are seeing an oligopoly system instead of a true free market. Something needs to be done but the administration has refused to enforce anti-trust laws. That leaves the average man paying more due to lack of market competition so a mechanism to force additional production/competition seems like a good idea.

[Dinner]

BTW we're on our way to a $350 billion deficit this year (so The Economist says) yet the Republicans passed another $60 billion election year give away to the top 1%.

How about some pay roll tax reductions for the working man? Nope, couldn't do that since the campaign donors are all millionaires.

[Berzerker]

it aint allowed by the Constitution, and where are all these Repubs and what are they saying? Shame on them if true, but all I've seen are Dems making this threat.

[DanS]

Welcome back to the 70s!

[Dinner]

Originally posted by Berzerker
it aint allowed by the Constitution, and where are all these Repubs and what are they saying? Shame on them if true, but all I've seen are Dems making this threat.

I don't recall anyone asking for a retroactive tax. Cite? Instead it would only apply on future profits.

Try again.

[Dis]

I support getting money from greedy oil companies. . Seriously though, I'm a capitalist, but these guys are surpassing Walmart in profits. It's truely astonishing.

[Dinner]

Originally posted by DanS
Welcome back to the 70s!

Let's be honest. We're having an energy crunch because our politicians were to lazy and stupid (or maybe the people electing politicians were the lazy and stupid ones) to force higher building codes, higher CAFE standards, and push for sensable energy efficiencies. Europe and Japan planned for this (via pushing for higher energy efficiencies and creating alternatives like quality mass transit) so they're not being effected nearly as much as we are.

[Imran Siddiqui]

Btw, in the interests of full disclosure here, when Berz says the courts made the distinction between criminal and civil retroactive laws, it was not a recent decision (ie, not from the Warren Court through Rehnquist Court). The distinction was actually made in Calder v. Bull decided by a unanimous court in 1798. FWIW.

Not saying whether the ruling is right or wrong; just challenging any implication that it was a modern case that did so.

[Dis]

edit: delayed DP

[Imran Siddiqui]

I support getting money from greedy Dis

[Dis]

Originally posted by Imran Siddiqui
I support getting money from greedy Dis

good luck on that. I just blew a whole bunch of my money. I've gone crazy. I figure I'm goin' out happy and young. Screw this getting old crap. I still haven't tapped into my mutual funds. But my bank account is gone.

[Dinner]

Originally posted by Dis
I support getting money from greedy oil companies. . Seriously though, I'm a capitalist, but these guys are surpassing Walmart in profits. It's truely astonishing.

One would thinkthe high prices would convince them to reinvest into greater production capacity but that seems to be taking the back seat to profiteering. Some sort of mechanism to force the oil companies into either increasing production or penalizing them in the form of higher taxes seems in order. If they increase investment then they totally avoid the tax while if they don't then they get slapped with a 50% tax. That ought to convince even the most yellow backed oil baron to invest a great deal of money into increased production.

[Dinner]

Originally posted by Imran Siddiqui
I support getting money from greedy Dis

Poor Dis just bought a V-8 powered car. He'll have to get a second job just to fill the tank up.

[DanS]

We're having an energy crunch because...

False.