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Tuesday, June 10, 2008

Senate Democrats To Try and Pass Windfall Profits Tax On Oil Companies Today

Today Senate Democrats are going to try and push windfall profits tax legislation though.  Senator Dick Durbin (Senator Barack Obama’s colleague from Illinois) is describing this as an effort to show oil companies “that there is a limit on how much profit they can take in this economy.”

Because “limiting profits” is what America’s all about.  Life.  Liberty.  Government-regulated profits.

As the Senate considers this there’s one thing to keep in mind: A windfall profits tax on oil companies has been tried before.  Such legislation was passed during Jimmy Carter’s term in office, and what did that legislation result in?  Less domestic production of oil and more dependence on foreign oil.

Is that really what we want as America struggles to become less dependent on foreign oil?

North Dakotans, in particular, should have an interest in this legislation.  Senator Byron Dorgan from our state has been a particularly ardent supporter of a windfall profits tax, but as oil companies pour money into North Dakota to explore and exploit the Bakken oil reserves is a punishing new tax on those oil companies - something that would confiscate vast swaths of the same money they’re investing in our state right now - really a good idea?

It isn’t.  A windfall profits tax would be bad for North Dakota in that it would slow investment in domestic production of oil and thus oil production in North Dakota.

Watch carefully how Senators Dorgan and Kent Conrad vote, North Dakotans.  Will they vote for what’s best for North Dakota or will they side with their national party?

Comments

How about a tax on shysters like Durbin and Obama?

Kevin on June 10, 2008 at 08:51 am

It seems to me tha when Dorgan was talking about his before he claimed that if they spent so much on exploration and development it wouldn’t apply.  I find that amusing in that Dorgan’s done what he could to restrict them from doing so in ANWR and off the coasts.  I also think (but not sure) that he’s been against oil shale as well.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on June 10, 2008 at 09:57 am

Dorgan and Conrad both voted to invoke cloture, which means they at least supported more debate and probably supported the full bill. Cloture failed, 51-43,not the 60 votes necessary.

And they also voted for the $1.6 billion tax breaks for lawyers.

Great representation for North Dakota.

Pomerdorgrad on June 10, 2008 at 10:10 am
Avatar for Rob B.

If the bill passes, I’ll predict a 3 dollar jump on the price of oil. I’m just saying.

Rob B. on June 10, 2008 at 10:11 am
Avatar for Bruce

Johnny Depp made $92 million last year. How come we never hear these socialists in Congress decry the “excess profits” of Hollywood movie stars?

No one needs to be paid more that $500,000 to make a movie. Where’s the regulatory legislation for this? Think of all the homeless children they could cloths and feed by taxing excess movie profits.

Bruce on June 10, 2008 at 10:13 am

Bruce,

Just to make your comparison clearer, Mr. Depp made just about 50 times more than the $1.6 million salary earned by Mr. David O’Reilly, Chairman and CEO of Chevron, and over 17 times the $5.1 million in total compensation earned by Rex Tillerson, head of Exxon-Mobil.

Odd, we don’t see idiots like Dick Durbin and Bernie Sanders, or simple minded partisan hacks like Dorgan and Schumer screaming about Mr. Depp’s enormous pay package.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on June 10, 2008 at 10:50 am
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