...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
All you have to do is read the list of authors and co-sponsors of the legislation...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.
I'd like to see this on congress salaries too, if I decide they earn too much, I should be able to take it.
Is this the week of dumb ass legislation?
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'd like to see this on congress salaries too, if I decide they earn too much, I should be able to take it.
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?
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.
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.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.
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.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.
Unfortunately, I think you're right. On both counts.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."
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