Dems propose 'Reasonable Profits Board'...

[Mycroft]

...to regulate oil company profits

Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits.

The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.

The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding "a reasonable profit." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.

The bill would also seem to exclude industry representatives from the board, as it says members "shall have no financial interests in any of the businesses for which reasonable profits are determined by the Board."

read more at: Dems propose 'Reasonable Profits Board' to regulate oil company profits - The Hill's Floor Action

When will politicians ever learn that price controls don't work?

This sort of thing was tried by Nixon and by Carter with quite undesirable results in both cases.

Here's hoping the more sane politicians nip this one in the bud.

 

[Henrin]

Reasonable Profit Boards?

So now we are telling people how much they can earn? Well I guess to be fair this started with the bank bailouts and their CEO's pay. Funny how I was called insane for saying this would go towards telling other people what they can earn. I guess I will be called insane again here as it only telling Oil companies what they can earn. Oh yes people, it won't come around to you. These things never do! Open that history book again if you believe that.

 

[RadicalModerate]

From what this article outlines, I oppose this.

 

[1Perry]

There are many legitimate actions they could take but won't. They come up with this crap. Oil was well down until the government decided to pump Wall Street full of money.

I've never seen his position and I did a quick search and found nothing but what was Kucenich's position on QE?

 

[Harry Guerrilla]

Is this the week of dumb ass legislation?

 

[ksu_aviator]

See my signature. It predicted this very thing.

 

[tessaesque]

Other companies make a higher GP % than oil companies. I looked it up once before and I believe (it's been awhile) that oil had an 18% profit margin and Apple had 30% over a specific period of time. We only target oil companies because of the constantly fluctuating price of gas, but gas isn't even a huge profit hound for most of them. The oil companies have little control over the price of gas...speculation on oil, city/state/national taxes, and regulatory fees eat up most of what we're paying at the pump.

This is just an assinine attempt to villify and target a company because they've already successfully (and incorrectly) swayed public opinion against them.

 

[VanceMack]

So do those profit limitations include all those workers who have 401ks and are invested in oil companies? And if their concern is rising oil and gas prices, wouldnt it make sense to invest in American production of crude and not be dependent/reliant on the middle eastern oil markets, or oil markets controlled by hostile governments in Venezuala and China?

Typical government/mafia tactics. We're gonna tell you what you can earn, we are gonna take a chunk of what you earn because we can, and when you make more than what we say you can, we are going to take that from you.

 

[VanceMack]

Other companies make a higher GP % than oil companies. I looked it up once before and I believe (it's been awhile) that oil had an 18% profit margin and Apple had 30%. We only target oil companies because of the price of gas, but gas isn't even a huge profit hound for most of them. The oil companies have little control over the price of gas...speculation on oil, city/state/national taxes, and regulatory fees eat up most of what we're paying at the pump.

This is just an assinine attempt to villify and target a company because they've already successfully (and incorrectly) swayed public opinion against them.

All you have to do is read the list of authors and co-sponsors of the legislation...

 

[sawyerloggingon]

"Reasonable profits law" = long gas lines, been there done that. Some people never learn.

 

[spud_meister]

I'd like to see this on congress salaries too, if I decide they earn too much, I should be able to take it.

 

[tessaesque]

I'd like to see this on congress salaries too, if I decide they earn too much, I should be able to take it.

I think whenever they want to give themselves a raise it should require a 4/5s vote in favor by the registered voters all over the country and within our territories.

I know of no other profession outside of politics where you can say "I think we should give ourselves raises..all in favor? Awesome, it's done!"

 

[spud_meister]

****, just considering the sheer stupidity of this, giving three people arbitrary power to punish businesses at a whim. Can't see any potential for abuse at all. :roll:

 

[soccerboy22]

Is this the week of dumb ass legislation?

The are just getting it all out of the way at once.

 

[Harshaw]

How is this proposal intellectually any different from pitchforks and torches?

 

[LaMidRighter]

I propose they stop minding other people's business. Learn what real rights are, apologize for the thought and then jump off a bridge as a pennance for being so stupid and envious.

 

[StillBallin75]

When will politicians ever learn that price controls don't work?

This sort of thing was tried by Nixon and by Carter with quite undesirable results in both cases.

Here's hoping the more sane politicians nip this one in the bud.

I dunno why they even bother. This idea isn't gonna fly with everyone else. Can we work on legislation that might actually have a chance of passing, please?

 

[StillBallin75]

I'd like to see this on congress salaries too, if I decide they earn too much, I should be able to take it.

You'd have to travel halfway around the world to do it, though.

 

[soccerboy22]

I dunno why they even bother. This idea isn't gonna fly with everyone else. Can we work on legislation that might actually have a chance of passing, please?

But then Congress would be, you know, doing something useful.

 

[Harshaw]

This has no chance of passing the House, of course, so it's simply a campaign tactic. A meme to be pushed.

Of course, only Republican opposition to it -- even though as we see here, pretty much everyone will think it's a silly idea -- will be called a "wedge issue."

 

[MaggieD]

When will politicians ever learn that price controls don't work?

This sort of thing was tried by Nixon and by Carter with quite undesirable results in both cases.

Here's hoping the more sane politicians nip this one in the bud.

Sounds like what the government already does with utilities...electric, natural gas. I can't see how it would work with oil companies, though, since then the government would be in charge of how much $$ could be spent on exploration. That could be dangerous, in my opinion.

 

[LaMidRighter]

Other companies make a higher GP % than oil companies. I looked it up once before and I believe (it's been awhile) that oil had an 18% profit margin and Apple had 30% over a specific period of time. We only target oil companies because of the constantly fluctuating price of gas, but gas isn't even a huge profit hound for most of them. The oil companies have little control over the price of gas...speculation on oil, city/state/national taxes, and regulatory fees eat up most of what we're paying at the pump.

This is just an assinine attempt to villify and target a company because they've already successfully (and incorrectly) swayed public opinion against them.

The last time I looked at a profit comparison doughnuts were the highest profit item in America. It was something like .03 cents of dough could make a gross of .63c doughnuts. The margin was sick. Not that it's a big problem considering they are still an inexpensive item and good for those owners making a good profit but it puts perspective on things.

 

[VanceMack]

The last time I looked at a profit comparison doughnuts were the highest profit item in America. It was something like .03 cents of dough could make a gross of .63c doughnuts. The margin was sick. Not that it's a big problem considering they are still an inexpensive item and good for those owners making a good profit but it puts perspective on things.

I wonder how often people actually stop to think about just what is required to put that gallon of gas in your tank. Crude has to be drilled, captured, stored, transfered to tanks, loaded into tankers transported across the ocean, shipped to refineries, refined, stored, transferred to trucks, shipped to stations, stations have to be maintained, and then 40-60 cents worth of taxes are added to the final total. Expensive gas sucks. Reality is...its a bargain. If Americans knew what Europeans...hell...if they knew Middle Easterners...paid for gas they would be shocked.

 

[radcen]

This has no chance of passing the House, of course, so it's simply a campaign tactic. A meme to be pushed.

Of course, only Republican opposition to it -- even though as we see here, pretty much everyone will think it's a silly idea -- will be called a "wedge issue."

Unfortunately, I think you're right. On both counts.

 

[Renae]

I'm more worried Obama will decide this is a good idea and appoints the board while Congress is in Recess according to him... ya know like when they are at lunch or maybe after they go home for the night.