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View Diary: Profits soar as oil companies victimized again by high gas prices (111 comments)

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  •  Windfall profits tax... (1+ / 0-)
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    noladerf a stupid and punitive idea. Tax a company for being successful: that's good government practice (not).

    Yeah, I'm in favor of removing oil and gas subsidies, but is there evidence that these industries are actually subsidized (in ways that other industries are not)? I'm agnostic toward this question, but I'm not sure I've ever seen evidence that this is really happening. Can someone point out evidence of "special" subsidies for oil and gas?

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Thu Apr 28, 2011 at 09:28:22 AM PDT

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    •  it's time for a windfall profits tax. (1+ / 0-)
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      witness the GOPranos...rethugs....Paul Wolfowitz: "If they fuck with me or Shaha, I have enough on them to fuck them too."

      by change the Be on Thu Apr 28, 2011 at 09:57:25 AM PDT

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    •  you mean like oil depreciation allowances (1+ / 0-)
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      As Robert Bryce pointed out in his book, Cronies: Oil, the Bushes, and the Rise of Texas, America's Superstate: "Numerous studies showed that the oilmen were getting a tax break that was unprecedented in American business. While other businessmen had to pay taxes on their income regardless of what they sold, the oilmen got special treatment."

      Bryce gives an example in his book how the oil depreciation allowance works. "An oilman drills a well that costs $100,000. He finds a reservoir containing $10,000,000 worth of oil. The well produces $1 million worth of oil per year for ten years. In the very first year, thanks to the depletion allowance, the oilman could deduct 27.5 per cent, or $275,000, of that $1 million in income from his taxable income. Thus, in just one year, he's deducted nearly three times his initial investment. But the depletion allowance continues to pay off. For each of the next nine years, he gets to continue taking the $275,000 depletion deduction. By the end of the tenth year, the oilman has deducted $2.75 million from his taxable income, even though his initial investment was only $100,000."

    •  windfall profits tax is NOT a tax (1+ / 0-)
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      for being "successful" unless by "successful" you mean monopolizing or manipulating markets to inflate profits.

      Nice right wing talking points.  As others have pointed out your canard about "subsidies" is bogus.

      •  If anyone has a monopoly it's SA ... (0+ / 0-)

        they (allegedly) have the only significant spare capacity. It's certainly not the IOC's. Refining margins are small and gasoline pricing is highly competitive.

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