And by ‘rich’, I mean the oil companies. It seems those wacky
socialists Democrats are at it again.
The Gas Price Spike Act would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding “a reasonable profit.”
Ah, but who determines what is ‘reasonable’? Why, an unelected board of 3 presidential nominees!!!
According to the bill:
“…a windfall tax of 50 percent would be applied when the sale of oil or gas leads to a profit of between 100 percent and 102 percent of a reasonable profit. The windfall tax would jump to 75 percent when the profit is between 102 and 105 percent of a reasonable profit, and above that, the windfall tax would be 100 percent. The bill also specifies that the oil-and-gas companies, as the seller, would have to pay this tax.”
Where would this revenue go?
Kucinich said these tax revenues would be used to fund alternative transportation programs when oil-and-gas prices spike.
“Gas prices continue to rise, creating a hardship for the American people,” he said. “At the same time, oil companies are making record profits gouging their customers. This bill would tax only the excess profits and create forward-thinking transportation alternatives.”
Specifically, he said the money would be used to fund a tax credit on the purchase of fuel-efficient cars and set up a grant program for mass transit programs when oil-and-gas prices are high.
Once again, the lawyers in Congress, who have not held a real job in the private sector, are acting to correct a problem that they have helped create. Gas prices have gone up in part due to increased demand from consumers in other countries such as China and India. Another reason for the increase in the price of gas is that the U.S. government has restricted offshore drilling since the Deepwater Horizon platform blew up.
If Congress was really serious about getting the price of gas to fall, they would pass a “Offshore Oil Drilling and Refining” Act. Once passed, this act would repeal all bans on offshore drilling in the U.S. It would also mandate an increase in the number of oil refineries in the U.S. This would increase the supply of gasoline, which would reduce its price.
But then again, Representative Kucinich et al wouldn’t be able to crow about how they are improving your future by saving the environment when they campaign for re-election.