We all remember July of 2008 when the price per barrel of oil approached $150 and the price per gallon of unleaded gas passed $4.10. Many proposals came up. Republicans suggested removing the federal gas tax for the summer. Democrats disagreed. They suggested a "windfall profits tax" on oil and gas companies. The Republicans, obviously, hated that. So, should we tax big oil? How should we do it? When?
Here's what I think:
1. Use Kucinich's proposal as a basis. Have a board (bipartisan but any member may not have any connection to oil companies) that determines a "reasonable profit margin." Set-up a plan to tax them based on the R.P.M.
2. Create incentives: self-control, reduced taxes for companies that make a profit below R.P.M.; workers pay and jobs, similar to Obama's plan of $3,000 in tax breaks for each well-paying job that companies create for Americans; and last but not least - philanthropist incentives, giving money away to good causes like education, entertainment, environmentalism, etc.
3. When? It should be based on profits at certain times of the year. Winter - low tax; Summer - higher tax
4. Oil companies in trouble: If the oil companies need a bailout, the money will be given in several ten-thousand-dollar sums and remain accountable for that money.
It is important to keep oil companies under control - no one wants a repeat of last summer. not to mention that people do need cars and do need oil and gas. A demand curve (a graph showing consumer demand vs. price) will reflect this by staying above the x-axis (price).
What are your thoughts on this issue?
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Point 4 is irrelevant. Demand curve mention is used to express an opinion that the oil companies may have purposely exploited the consumer by self controlling supply and demand trends.
ReplyDeleteFor commenting specifically on the oil spill, use my new blog: http://www.bpgulfoilspill.blogspot.com/
ReplyDelete1: Board can be any size (2-12) but no:
ReplyDeletea. ...more dems than repubs. and vice versa (independents encouraged).
b. ...members accepting $6k in or campaign finances from oil companies per election year.
c. ...members who have worked for big oil in an executive position for more than 28 business days.
D: NO GRANDFATHER CLAUSE until after RPM is set.
They can rely on testimony from big oil reps, avg. consumers, politicians who fall under the above constraints, economic experts, etc. to set the RPM (no pun intended). Adjustments for inflation and time-of-year supply & demand trends required.
2: Incentives: there should be a cap on how much the oil companies can be exempt for each incentive set.
Money taken are to be invested in areas needed such as renewable energy research, public transit, bridge & highway repair, etc. Some can go back into the bailout fund set in 4.