This is classic. The Democrats, the same crew that prohibited oil exploration in the Arctic, now are proposing to levy a penalty in the form of a profit tax against large oil companies effectively penalizing one specific industry from making too much money. For being successful. Cut back on oil profits and the oil companies will just cut back on R&D and exploration expenses. The result, less domestic production and an even greater dependence on foreign sources. Pelosi, Reid and their ilk are absolutely nuts. Fortunately this bill has next to no chance of making it past a presidential veto.
Quote:
WASHINGTON (AP) — Senate Democrats on Wednesday called for a windfall profits tax on oil companies and a rollback of $17 billion in oil industry tax breaks as part of an energy package. The proposal also would impose federal penalties on energy price gouging and calls for stopping oil deliveries into the government's emergency reserve.
Senate Republicans strongly oppose any additional oil industry taxes, which are widely viewed as having little chance of being enacted. Even then, they would almost certainly prompt a veto by President Bush.
The proposed 25 percent profits tax would apply only to windfall oil company earnings above what would be considered "reasonable" and only if those profits are not reinvested in refinery capacity expansion or renewable energy sources, according to a summary of the proposals.
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The Associated Press: Senate Democrats seek to tax oil companies