Question:

Exactly how will a windfall profits tax on the oil companies lead to increased energy supplies?

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I'm trying to figure out the logic, if any.

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  1. I don't think it would.  Just the threat of windfall profit taxes would drive investors away from the oil industry.  The net effect would be to divert money away from oil exploration to be wasted on ineffective and pointless government research.

    I don't even believe that it will increase government revenue.  The general impact of tax rate increases is less government revenue, as higher taxes drives the business away and reduces net government revenue.

    To be fair to Obama he is not interested in increasing the energy supply or government revenue.  The purpose of his tax is "fairness" or punishing success so we'll have less of it I guess.


  2. The windfall tax is just the liberals trying to squezze votes out of this energy crisis.  They try to demonize Big Oil for high gas prices,  Exxon is making 8 and a half percent of the sale price { before their profit tax}  thats no more than any other sales industry. They are making record profits because of a increase in demand, not because of some unfair price hike,  gas is so expensive because of the high cost of oil which has nothing to do with Exxon .  the liberals will try to make you think big oil is the bad guy when in fact it is the, Ban on offshore drilling, the fact no one is allowed to build new refineries, and that oil companys have to make 30 different grades of gasoline to comply with state carbon emition laws all of these laws were put into place by Democrats in Washington, and now they are passing the blame.

  3. not sure where you saw that it would lead to "increased energy supplies" but i'd like to read that!

    essentially it would lead to more government revenue.

    now....if such a tax WERE to be implemented but then waived IF an oil company met certain criteria (spend so much on new refineries, drilling, alternative energy, etc) then THAT might lead to increased supplies.

    send me a link to your source, will ya? thanks.

  4. That was Obama's idea. There is no logic, just the opposite will happen, oil companies pay more taxes and production slows because they can't afford to keep the refineries running so the price of gas goes way up. We'll be thinking $4.00 a gallon is cheap, the good ol' days.

  5. you would think that the government would learn from past mistakes.   this was tried under jimmy carters administration and it failed miserable.     supplies actually feel instead of increasing.   now the government wants to do it again.   will they ever learn.     mr  doodles

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