Oil companies are OWNED by consumers, by taxing them more, dont you just wipe money from your portfolio?

Question

http://susan-lynn.blogspot.com/2007/09/who-owns-big-oil-anyway.html

API hired Robert Shapiro, noted economist and former Undersecretary of Commerce under President Clinton to find out who owns the stock in America's oil and natural gas industry and just who is profiting from high profits.

The study revealed that:

Almost 43 percent of oil and natural gas company shares are owned by mutual funds and asset management companies that have mutual funds. Mutual funds manage accounts for 55 million U.S. households with a median income of $68,700.

Twenty seven percent of shares are owned by other institutional investors like pension funds. In 2004, more than 2,600 pension funds run by federal, state and local governments held almost $64 billion in shares of U.S. oil and natural gas companies. These funds represent the major retirement security for the nation’s current and retired soldiers, teachers, and police and fire personnel at every level of government.

Answer 1

well... yeah!

If they (Obambi et al) raise taxes onthe evil oil companies, they will only be stealing money from peoples retirement.

Oil compnies are publicly held, they are owned by stock holders, these stock holders are a diverse group, some can be the "rich", more often it is owned by groups, funds, and these funds are owned by retirement funds.

To raise the tax on the oil company and since corporations do not pay taxes, taxes are passed on to the stock holders and the customer, the only gain will be to harm the average citizen that has to buy oil/gas and those that invested in the company.

Answer 2

Yep, WE are the speculators we fear.

Taxing profits will ALSO increase prices, for two reasons.

First, the incrased cost will be passed along to consumers, just as it always is in every product.

Secondly, less profits means less money for new exploration and drilling in hard-to-drill places.  The Russians and Mexicans are learning this - they tax profits, and their production and exploration has shrunk as a result, because the cost of drilling has gone up while the level of taxes stayed the same - one of the reasons supply is low right now.

But hey, if they could do math, they'd be in the wrong political party.

Answer 3

To h**l with the facts let's tax them.  Their profit margins are also relatively low compared to other businesses.