Obama May Levy $15 Billion Tax on Oil Company Profit

[Frank Booth]

May 1 (Bloomberg) -- Democratic presidential candidate Barack Obama's proposal for a windfall profits tax on oil companies could cost $15 billion a year at last year's profit levels, a campaign adviser said.

The plan would target profit from the biggest oil companies by taxing each barrel of oil costing more than $80, according to a fact sheet on the proposal. The tax would help pay for a $1,000 tax cut for working families, an expansion of the earned- income tax credit and assistance for people who can't afford their energy bills.

``The profits right now are so remarkable that one could trim them 10 percent or so, which would turn out to be somewhere in the $15 billion range,'' said Jason Grumet, an adviser to the Obama campaign.

More

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aP_1wrIyt1Nc


It's ideas like this that explain why the MSM is trying to torpedo Obama's campaign. And it's also why Democrats should be supporting him, rather than trying to tear him down.

[Kittycat]

1. Wow, look at a that... A REAL Solution.

One that targets the oil companies, and helps working families.

[NanceGreggs]

2. Hmmm ...

I think a summer "tax holiday" at the pump more than adequately addresses the ongoing situation.

(Just in case it's necessary: :sarcasm:)

[KittyWampus]

5. hmmm, maybe what Obama needs to do to catch a news cycle is a policy proposalm

something new, that would put Hillary on the spot.

[Frank Booth]

18. I agree. His campaign has done a horrible job the past couple months of shaping the stories in this

election. Some of the blame is Obama's, but most of it is Plouffe's and Axelrod's.

It looks (hopefully) like they did enough to get past Hillary, but it won't cut it against McCain.

Obama's campaign has to learn to manipulate the media like Hillary and McCain have. Of course it's easy when you're the media's chosen candidate, but that's no excuse for not trying.

The Obama campaign should be running with this proposal. It shouldn't be too hard to explain that this will do more good for the average American than Hillary's con job gas tax proposal.

[Turn CO Blue]

7. I was going to post a similar response!

"Thanks, but no thanks, Senator Obama! Senators Clinton and McCain more than have this issue covered! w00t!" /sarcasm

[dana_b]

3. this is real news and a good idea.

I'd imagine Exxon, Shell, etc. will be spending even more money lobbying McCain.

[Veruca Salt]

4. An awesome solution FTW!

I really like the sound of this, and I wouldn't have to worry about money that should be going to the upkeep of the roads and bridges.

[Yurovsky]

6. Agree 100% ...

and welcome to DU.

BTW, loved your namesakes's work in the first Willy Wonka movie. The 2nd not so much.

[Veruca Salt]

12. Thanks for the welcome Yurovsky!

:hi: I'm very glad to finally be posting. It took a while to pick a user id and someone on the board mentioned Veruca, and since I love both the band and character it was a perfect fit! And I totally agree with you on the Willy Wonka movies... I prefer the original and always will.

[FrenchieCat]

20. I agree!

[Coexist]

8. thank you for posting this.

[bighart]

9. let's all remember that this will take an act of congress

and I doubt they have the guts to make it happen. After all most of them are on the payroll of the oil companies via campaign contributions

[Barack_America]

19. And let's all remember that Obama is the candidate with coattails...

So if any real solutions like this are going to pass in Congress, it will be due to the strength he provides downticket.

Clinton? Not so much. She's a godsend to the Republicans downticket hopes, however. Ergo, why they're propping up her campaign.

[unblock]

10. something is seriously f*cked up when a PURE COMMODITY business is so hugely profitable

commodity businesses are supposed to get the standard, boring rate of return that comes from doing a standard, boring business. the bigger profits are supposed to come from innovation and risk-taking. building a business when it's not clear there's a market for your product. that's risk-taking that should be rewarded.

there's no risk in delivering a commodity to market. people need oil. duh.

yes, there is price risk, but this can be hedged and shifted.

they get their profit because there's insuffient competition and believe it or not, they actually get subsidies from the government. that's right. the richest companies on the planet, with the biggest, record-shattering profits, are on welfare.

[Frank Booth]

17. Yep. And another commodity industry is learning from big oil. Big ag.

[Veruca Salt]

23. Bullshit! You're not kidding are you??

they get their profit because there's insuffient competition and believe it or not, they actually get subsidies from the government. that's right. the richest companies on the planet, with the biggest, record-shattering profits, are on welfare.

Wow... I just learned something new today. It made me throw up a little in my mouth too. :puke:

[Triana]

11. *gasp!* NOOOOOOOOO! ONLY the oil companies, who've been raking in tax-free record profits

would take issue with that.

HOW LONG will it take them to hire someone ELSE to smear Obama - to keep him from being elected - so this doesn't happen - even though it's a REAL solution for the rest of us (to the oil companies, THEY are the only ones who matter, just ask bu$hco).

BYTHEWAY, Jason Grumet is SHARP. Saw him recently right next to Dan Utech, Hillary's Envriron wonk, and Grumet cleaned up - had the answers, presented Obama's energy/environmental plans very well, engaged the audience. Utech, though a nice guy, mostly sat there and agreed with Grumet.

PEE-ESS: CLINTON IS NOT A DEMOCRAT! And by proxy, neither is anyone who supports her. THEY DIDN'T LIKE IT when Republicans used her tactics in 2000 and 2004, but oh they're A-OK with Hillary using them NOW.

GOT INTEGRITY?

Guess not.

[writes3000]

13. Who was it that complained that Obama had no solutions? Brilliant idea, Obama! n/t

[FrenchieCat]

14. Would this mean I don't get my extra $8.00+ per month savings on Gas???

Oh NOES!

:sarcasm:

[quantass]

15. .

[FrenchieCat]

16. Ooh shit.........The media is gonna globber him now!

[NatBurner]

21. now THAT'S news. God bless rich people

and tax them while you're at it

[indepat]

22. Jesus, there somebody goes suggesting an income tax to eat up four-months of profits of one

big oil company: that is such a bleeding-heart commie-pinko idea from a tax and spend Democrat! :D