Do you think Obama will REALLY tax big oil companies? That seems kinda stupid to me
If they're paying higher taxes that just means we'll be paying higher prices at the pump (and for anything else that depends on oil).nnThoughts?
Answers
2083 points
alanj answered one year ago …
He said he would, but fortunitly the Dem's don't have a super majority in either the House or Senate. This means that the Rep's can block any attempt to do so. Unless, the Dem's can convince enough Rep's to join them to give the Dem's a 60% override of the Rep's block attempt.
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435 points
larryat36 answered one year ago …
None ever should assume that if something is stupid, that it will not be done anyway. Congress is still looking for a fall guy for all the ills of the ecomomy. God forbid that they take any blame.
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991 points
rvilmur answered one year ago …
Politicians and stupidity go together and when they have a Robin Hood attitude they will tax where the money is. It doesn't matter to them that the big oil companies have high profits only because they are not adequately replacing their depleting reserves. This will cost all of us dearly in the future with much higher oil prices.
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2224 points
readytoretire answered one year ago …
As you noted, the oil companies have a low return on their money. They attract attention because they go through so much that the profit total is large. The CongressPresident is never shy about about quick fixes for the camera, even though it is the wrong answer long term. As we voters have a very short memory, they can get away with short term fixes. Couple a tax increase with a tax cut for the lower middle class, and it would sail through Congress. Even if the net result was no change.
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freedatlast answered one year ago …
First, if anything it will be a windfall profits tax and will depend on how the bill defines windfall profits this time around. Second, don't assume that every Demo is going to vote for it, especially in the Senate. And don't assume that Obama is going to rubberstamp every bill that Pelosi shoves through -- he's smarter than that. When Obama talked about energy throughout his campaign he emphasized the reduction/elimination of dependence on foreign oil for obvious economic & political reasons. He also spoke iin favor of increasing domestic production, but I think his policy may ratchet back offshore drilling areas . And if the "big oil" companies are smart (and they usually are) they will start thinking of themselves as energy companies, not oil companies and go after the alternative energy sector and the huge tax breaks and incentives I believe will be available for Alt-E companies. They need to do what the railroads had to do when the auto industry developed - think of themselves as transportation companies, not railroads. Those that did, survived, the rest...not so much.
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jester112358 answered one year ago …
Yes, I think he will. Which will result in higher oil prices and less oil exploration. So investing in USO, DBE and other oil commodity based ETFs will be a good move.
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BoxCar answered one year ago …
With the rapid retreat in Oil prices and subsequent fall in fuel prices, I suspect we'll see
a tax hike on FUELS instead of Oil because so many other products come from Oil it'd
have a larger impact on economy if they hit Oil alone with tax hikes. Also a FUEL TAX
hike would serve to force fuel EFFICIENCY upon us while promoting alternative fuels.
