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Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits.
The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.
The Gas Price Spike Act, H.R. 3784, 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." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.
The bill would also seem to exclude industry representatives from the board, as it says members "shall have no financial interests in any of the businesses for which reasonable profits are determined by the Board."
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.
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.
The bill does not estimate the size of these grants or the amount of money that might be collected through the tax.
Co-sponsoring the bill are five other Democrats: Reps. John Conyers Jr. (Mich.), Bob Filner (Calif.), Marcia Fudge (Ohio), Jim Langevin (R.I.), and Lynn Woolsey (Calif.).
From the reader's responses, my favorite quote:
"This is great- now we need a "Reasonable Spending Board" to monitor our Congress. We need a "Reasonable Ethics Board" to punish members of Congress who use their office to enrich themselves. A "Reasonable Taxation Board" to prevent the government from taking too much of our money.
We can have a "Reasonable Earnings Board" to take money from actors and musicians who make too much money on their movies and records. A "Reasonable Athlete Salary Board" to make sure athletes don't make too much money. A "Reasonable Executive Compensation Board" to make sure people like Franklin Raines don't make hundreds of millions while bankrupting taxpayer funded companies.
We have truly entered the twilight zone and Orwell must be spinning in his grave. The day the government gets to decide what a "reasonable profit" is for private companies we have allowed our politicians and federal government to become far too powerful.
Going after oil and gas companies is all about politics. They are not the preferred industries so their profits can be attacked. Why not go after Apple's profits or Microsoft? Their profit margins are higher.
The American people cannot allow our government to engage in this type of abject tyranny. It's the most un-American thing I can imagine. What's next- the government forcing all citizens to buy products and services from private companies?
The America of our founders and forefathers is disappearing before our eyes."
Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits.
The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.
The Gas Price Spike Act, H.R. 3784, 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." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.
The bill would also seem to exclude industry representatives from the board, as it says members "shall have no financial interests in any of the businesses for which reasonable profits are determined by the Board."
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.
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.
The bill does not estimate the size of these grants or the amount of money that might be collected through the tax.
Co-sponsoring the bill are five other Democrats: Reps. John Conyers Jr. (Mich.), Bob Filner (Calif.), Marcia Fudge (Ohio), Jim Langevin (R.I.), and Lynn Woolsey (Calif.).
From the reader's responses, my favorite quote:
"This is great- now we need a "Reasonable Spending Board" to monitor our Congress. We need a "Reasonable Ethics Board" to punish members of Congress who use their office to enrich themselves. A "Reasonable Taxation Board" to prevent the government from taking too much of our money.
We can have a "Reasonable Earnings Board" to take money from actors and musicians who make too much money on their movies and records. A "Reasonable Athlete Salary Board" to make sure athletes don't make too much money. A "Reasonable Executive Compensation Board" to make sure people like Franklin Raines don't make hundreds of millions while bankrupting taxpayer funded companies.
We have truly entered the twilight zone and Orwell must be spinning in his grave. The day the government gets to decide what a "reasonable profit" is for private companies we have allowed our politicians and federal government to become far too powerful.
Going after oil and gas companies is all about politics. They are not the preferred industries so their profits can be attacked. Why not go after Apple's profits or Microsoft? Their profit margins are higher.
The American people cannot allow our government to engage in this type of abject tyranny. It's the most un-American thing I can imagine. What's next- the government forcing all citizens to buy products and services from private companies?
The America of our founders and forefathers is disappearing before our eyes."
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