Oil company profits tax

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flaja

New member
The Democrats are pushing a new tax on the high profits that oil companies are making by selling gas for $3 a gallon. The Democrats want to use this tax revenue to support research into alternative energy sources.

Republican are opposed to the tax, claiming that the oil companies can do the research themselves.

Far be it from me to ever support higher taxes, but aren’t the Republicans completely out of it on this issue? A gallon of gas has on average has 113500 BTUs and consumers are willing to buy energy at $0.000026 per BTU for this form of energy. So as long as the oil companies can make huge profits by selling energy at $0.000026 per BTU what incentive will they have to research alternatives? And if they do research alternatives, what will keep them from selling the resulting energy at the current market price of $0.000026 per BTU? So just how do the Republicans think the oil companies are ever going to market alternative energy sources, much less lower consumer costs in the process?
 
Oil company profits are about 8% of sales, which is pretty much in line with most industries. Why are you singling them out?

BTW, the Fed govt imposes a $.36/gal tax on every gallon of gasoline. That amounts to around 14% of sales... and the Fed didn't have to do anything to produce the gasoline! If you're trying to find out whose "profit level" is doing the most to raise gasoline prices, it appears you've been looking in the wrong place.

I'll believe this "it's fair to take the oil company's profits" scheme when some congresscritter introduces a bill to take 20% of their profits when they make profits... and to send the oil companies 20% in cash when they incur losses. THAT will be a "fair" scheme.
 
Little-Acorn said:
Oil company profits are about 8% of sales, which is pretty much in line with most industries. Why are you singling them out?
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You are not looking at the whole picture.

Most of the retail price of a gallon of gas (that does not go to taxes) goes to the companies that own pipelines and oil refineries. But who owns the pipelines and refineries if not the oil companies that sell the gas?

http://en.wikipedia.org/wiki/List_of_oil_refineries#United_States

Just in the U.S. Shell Oil owns 5 refineries; BP owns 6; Conoco/Phillips owns 13; Chevron owns 6 and Exxon owns 7.

Using the average 8 cents per gallon retail profit to compute oil companies profits is misleading. The gas pump isn’t the only place that oil companies make their profit.

Furthermore, your 8% profit margin isn’t always accurate.

http://www.businessweek.com/magazine/content/05_21/b3934114.htm

“Oil prices hanging above $50 per barrel and the world's insatiable appetite for energy pushed the profit margin for that industry up to 9.1%, from 7.5% for the first quarter of 2004. Total earnings surged 50% over the period.”
 
Socialist are just plain nuts.....

Oh yeah add more tax to the cost of fuel...the oil companies will just pass it on to the consumer...anyone who votes for a liberal or socialist is out of their minds...and just who will receive the tax money and what will they really research(R&D)... just another form of 'Pork Barrel'...
 
Yes, let's increase the costs to the oil company so they can pass these costs onto us, the consumer! Have you ever even opened up an economics text book?
 
flaja said:
The Democrats are pushing a new tax on the high profits that oil companies are making by selling gas for $3 a gallon. The Democrats want to use this tax revenue to support research into alternative energy sources.

Republican are opposed to the tax, claiming that the oil companies can do the research themselves.

Far be it from me to ever support higher taxes, but aren’t the Republicans completely out of it on this issue? A gallon of gas has on average has 113500 BTUs and consumers are willing to buy energy at $0.000026 per BTU for this form of energy. So as long as the oil companies can make huge profits by selling energy at $0.000026 per BTU what incentive will they have to research alternatives? And if they do research alternatives, what will keep them from selling the resulting energy at the current market price of $0.000026 per BTU? So just how do the Republicans think the oil companies are ever going to market alternative energy sources, much less lower consumer costs in the process?
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can you say bull shit ?
they are doing away with tax breaks the oil companies get.
Not adding a tax I think.
Anyone making the profits the oil companies are do not need any tax breaks.
 
flaja said:
You are not looking at the whole picture.

Most of the retail price of a gallon of gas (that does not go to taxes) goes to the companies that own pipelines and oil refineries. But who owns the pipelines and refineries if not the oil companies that sell the gas?

http://en.wikipedia.org/wiki/List_of_oil_refineries#United_States

Just in the U.S. Shell Oil owns 5 refineries; BP owns 6; Conoco/Phillips owns 13; Chevron owns 6 and Exxon owns 7.

Using the average 8 cents per gallon retail profit to compute oil companies profits is misleading. The gas pump isn’t the only place that oil companies make their profit.

Furthermore, your 8% profit margin isn’t always accurate.

http://www.businessweek.com/magazine/content/05_21/b3934114.htm

“Oil prices hanging above $50 per barrel and the world's insatiable appetite for energy pushed the profit margin for that industry up to 9.1%, from 7.5% for the first quarter of 2004. Total earnings surged 50% over the period.”
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Then too the ships that transport the oil are another profit area.
 
Battleborne said:
Oh yeah add more tax to the cost of fuel...the oil companies will just pass it on to the consumer...anyone who votes for a liberal or socialist is out of their minds...and just who will receive the tax money and what will they really research(R&D)... just another form of 'Pork Barrel'...
Click to expand...

Maybe more tax passed on to the consumer in the form of higher gas prices will finally make Americans understand the need for alternative fuels.

My understanding is that the extra revenue will go to non-oil company entities whom are already doing R&D for alternative fuels.
 
flaja said:
Who owns the ships if not the oil companies? Remember the Exxon Valdez?
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Yep and then there was the one named the Condileza (sp?) Rice, but they renamed it :)
A bit to blatant I suppose.

I figure next year there will be the supertanker "Dick Cheny"
 
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There definitlely should be a huge tax on oil profits. The major cost of business for them, intimidating opec nations, is taken care of by the american military, and the blood of children.
 
it will get a swift and proper veto if morons like you guys are loud enough to get it passed. Any of you anti oil dorks have any college economics.
 
Yeah boy lets add that tax on to the end of my 3dollar gas cause I want to pay 3.60. Hell lets tax'em at 50 percent so we can all pay 5 dollars a gallon. Then we can raise the minimum wage to 45.75 per hour so that everyone has enough money to buy gas. But then a simple cheeseburger at McD's will run us about 4 bucks and a value meal will be a great value at 12.50, 13.00 even if you want it large. Do dems NOT THINK before they suggest these taxes. Keep this up and McCain will have a Republican congress to support his presidency.
 
flaja said:
The Democrats are pushing a new tax on the high profits that oil companies are making by selling gas for $3 a gallon. The Democrats want to use this tax revenue to support research into alternative energy sources.

......
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Why not put a tax on imported oil, and at the same time give an equivalent amount of tax breaks for exploitation of domestic energy projects, including oil and gas?
 
Southern Man said:
Why not put a tax on imported oil, and at the same time give an equivalent amount of tax breaks for exploitation of domestic energy projects, including oil and gas?
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Same reason we can't drill in anwar. Foreign oil dependance and the need to subjugate those nations is a huge justification the military industrial complex can use to control society.
 
Southern Man said:
Why not put a tax on imported oil, and at the same time give an equivalent amount of tax breaks for exploitation of domestic energy projects, including oil and gas?
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I think that is pretty much what this is all about, since around 70% ? of our oil is
imported.
But I thought it was about doing away with oil co specific tax breaks, not adding a new tax. Or am I cornfused ?
 
uscitizen said:
I think that is pretty much what this is all about, since around 70% ? of our oil is
imported.
But I thought it was about doing away with oil co specific tax breaks, not adding a new tax. Or am I cornfused ?
Click to expand...


You are correct. The proposal is to do away with tax breaks for oil companies and to provide those tax breaks to renewable energy sources.
 
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