Obama calls for windfall tax on oil profits as gas prices soar

[XDConvert9mm]

Obama calls for windfall tax on oil profits as gas prices soar

WASHINGTON (AFP) - Democratic presidential hopeful Barack Obama called for a windfall tax on oil company profits Friday, as pump prices in the United States hit a new record high.

For the well-off in this country, high gas prices are mostly an annoyance. But to most Americans, they're a huge problem, bordering on a crisis," he told reporters at a gas station in Indiana, where he is campaigning.

According to the automobile association AAA, the average price of a gallon (3.78 liters) of gas reached a record 3.58 dollars Friday.

Obama proposes oil companies be taxed on windfall profits from oil sold at or above 80 dollars a barrel, and the revenue be used to help relieve the burden of rising prices on working people, according to his campaign.

He also wants more transparency in the way pump prices are fixed, a tax cut for the middle classes that would benefit families by up to 1,000 dollars a year, and a 150-billion-dollar investment over 10 years in clean energy.

Presumptive Republican presidential nominee John McCain has proposed cutting federal taxes on pump gas this summer to counter rising prices, but Obama rejected this idea, saying such taxes brought in needed funds for road maintenance.

"I don't want somebody to save essentially 25 bucks -- that's what the savings would yield for the average driver -- and now they're potentially driving over an unsafe bridge," he said.

"I think it's a better option for us to use the mechanism I've talked about, providing a middle-class tax cut would give people relief" for rising food and energy prices.

"And at the same time go after a windfall profit tax that would be used to provide relief to low-income folks," he said.

The Illinois senator turned his attention to McCain and to his Democratic rival, Hillary Clinton, referring to them as "the candidates with the Washington experience."

"They mean well. But they've been in Washington an awful long time and even with all the experience they talk about, nothing has happened," he said.

He noted that the United States did not raise fuel-efficiency standards for more than 30 years, adding: "What have we got for all that experience? Gas that's approaching four dollars a gallon."

Obama calls for windfall tax on oil profits as gas prices soar - Yahoo! News

Another season of high Oil prices and another Election year Democratic call for windfall profits on the Oil companies. I simply do not understand why these folks can not themselves understand that any of these taxes will be passed right along to the consumer in the form of even higher gas prices. 2+2=4. This supposed windfall tax income, IMO, would not help "low income folks" at all. It would effectively cost them more in gas prices and increased costs on all products that require fuel to get to the stores...and that includes all products.

We also have Obama now using the term "well off" for those that can still pay their bills. I wonder when he would get around to taxing those who are "well off" right in to not being able to pay them and sending them in to the lower class? We must have more equality and parity!

[Judge]

Lets see, you tax something, you get less of it....

[XDConvert9mm]

Originally Posted by Judge

Lets see, you tax something, you get less of it....

Yup, and the wheels on the bus go round and round. The only true beneficiary here, IMO, is the U.S. Government.

[AZXD]

Name one thing in the last 20-30 years that has benefitted the people over government.

[XDConvert9mm]

Originally Posted by AZXD

Name one thing in the last 20-30 years that has benefitted the people over government.

I give up. Tell me.

[FLSTFI Dave]

Originally Posted by XDConvert9mm

Another season of high Oil prices and another Election year Democratic call for windfall profits on the Oil companies. I simply do not understand why these folks can not themselves understand that any of these taxes will be passed right along to the consumer in the form of even higher gas prices. 2+2=4. This supposed windfall tax income, IMO, would not help "low income folks" at all. It would effectively cost them more in gas prices and increased costs on all products that require fuel to get to the stores...and that includes all products.

We also have Obama now using the term "well off" for those that can still pay their bills. I wonder when he would get around to taxing those who are "well off" right in to not being able to pay them and sending them in to the lower class? We must have more equality and parity!

I have a hard time understanding how college educated people can not figure our No Business pays Tax...it is always passed on to the consumer in terms of cost of the product.

I would love for one of them to explain in detail how this will help any consumer, rich, middle class or poor.

Dang, he keeps moving the definition of Wel off or Rich lower and lower....

I gues now I am well- off cause I can still pay my bills..

Originally Posted by Judge

Lets see, you tax something, you get less of it....

Usually how it works, or you pay more for the same amount.

Originally Posted by AZXD

Name one thing in the last 20-30 years that has benefitted the people over government.

I would love to see somebody answer your questions...especially when it comes to Taxation.....

[DanTheEldest]

Originally Posted by FLSTFI Dave

I have a hard time understanding how college educated people can not figure our No Business pays Tax...it is always passed on to the consumer in terms of cost of the product.

From what I know about the predominant slant in mainstream universities these days, I'd say old Barak is following his indoctrination....uh, I mean education to the letter.

[eric_t12]

watch it dan, disagreeing with the government is whining and borderline al qaeda-ish.



its not like they dont have enough taxes yet! i mean come on...

I would love for one of them to explain in detail how this will help any consumer, rich, middle class or poor.

as would i, especially since they use the tax based on not even the environment, but the high cost on the people, ie economics - money/cost is the apparent motivator for said tax. therefore, they must be thinking this will somehow reduce the cost for americans.

and i would also like to know how he defines 'middle-classes', for this tax credit.

i suppose the old go by the income decree will be in force.

[KEVWYO]

I would be interested to know how much big oil is really putting into further oil reserve identification and exploration and/or alternative fuels research.

If it could be proven that they really aren't doing much in terms of my question then perhaps a windfall profits tax would be in order to force the research.

The irony it seems to me is forcing big oil to find it's own replacement. Of course they are going to drag their feet.

[XDConvert9mm]

Originally Posted by KEVWYO

I would be interested to know how much big oil is really putting into further oil reserve identification and exploration and/or alternative fuels research.

If it could be proven that they really aren't doing much in terms of my question then perhaps a windfall profits tax would be in order to force the research.

The irony it seems to me is forcing big oil to find it's own replacement. Of course they are going to drag their feet.

It is already well known where the Oil is in this country. The Gulf, ANWR, shale, sands etc. It has all been blocked by the greenies and NIMBYs. Why force them to spend more on exploration for Oil that we aren't going to allow them to get to?

As far as alternative fuels research, get Congress to pass the tax incentives for wind, solar and biofuels and we might at least get a start on these processes.