Why did the Republicans block Democrats’ attempt to impose windfall profits tax on oil companies?

Posted on March 24th, 2011 by admin1 in republican marketing company

With gasoline prices topping $4 a gallon, Senate Democrats wanted the government to grab some of the billions of dollars in profits being taken in by the major oil companies.

Senate Republicans blocked a proposal Tuesday to tax the windfall profits of the largest oil companies, despite pleas by Democratic leaders to use the measure to address America’s anger over $4 a gallon gasoline.

The Democratic energy package would have imposed a tax on any "unreasonable" profits of the five largest U.S. oil companies and given the federal government more power to address oil market speculation that the bill’s supporters argue has added to the crude oil price surge.

Because they are in bed with the oil companies and their lobbyists.

31 Comments on “Why did the Republicans block Democrats’ attempt to impose windfall profits tax on oil companies?”

  1. hatescreenames

    Because those extra taxes would have ended up being paid out of our pockets, economics 101References :

  2. unsure_one

    Because they are in bed with the oil companies and their lobbyists.References :

  3. Batman

    because it was the right thing to do!

    Increasing taxes on oil companies will only increase the price of gas.References :

  4. tp4me4

    It wouldnt lower oil prices so who cares.References :

  5. Curtis

    How does taxing oil company profits lower the price of gas to you?

    Corporations do not pay tax, you pay the tax.References :

  6. Harbinger H

    Taxes get passed on to consumers. The Democrats know this but do not care. They are more interested in visuals and sound bites. The republicans had the courage to vote against a bill that would raise gas prices even more.References :

  7. Here and Now

    A windfall tax is not the answer. No I am not a Republican, however they were correct on this one. The problems with high gas has to do with supply and demand, mideast politics and speculative trading on the oil markets. A windfall tax will result in increase gas prices just like a gas tax holiday will result in increased gas prices.References :

  8. ddd

    because they don’t want Americans to have to pay $12 a gallon !!!References :

  9. Krytox1a

    because kid then problem is NOT the oil companies!!

    jess……

    the problem is the idiotic liberals NOT letting us drill here since the 70’s, NOT letting us build new refineries, etc

    blame the liberals, THEY are the ones that have us bend over a barrel of middle eastern oil and we are taking it in the behind from OPEC!

    "drill here, drill now….drill here, drill now….!References :

  10. ss_brakey

    Republicans always take care of corporations first. Always have, always will.References :

  11. curious

    Maybe, because they know that the big oil companies will just keep raising their prices to make up for the loss, nothing gained by it, no solution.References :

  12. greyzone2

    what is, they are paid by oil lobby? different priorities.

    "The windfall profits bill would have imposed a 25 percent tax on profits over what would be determined "reasonable" when compared to profits several years ago. The oil companies could have avoided the tax if they invested the money in alternative energy projects or refinery expansion. It also would have rescinded oil company tax breaks — worth $17 billion over the next 10 years — with the revenue to be used for tax incentives to producers of wind, solar and other alternative energy sources as well as for energy conservation."

    I guess stimulating renewables is not their priority , I wonder how did McCain vote ?

    Actually neither McCain nor Obama voted …References : http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00146

  13. u_bin_called

    a) since when is creating laws out of "anger" a good thing?

    b) why should the State be allowed to determine what an "unreasonable" profit is…..what if your parent or employer were subject to the same law?….there’s a lot of "anger" to go around, you know.

    c) how can you accept this penalty as an "energy" plan? learn to look beyond the pretty words and think about what is actually being forced down your throat.

    d) the dems knew they didn’t have the support to pass this…so write it of as another meaningless attempt to make the republicans look bad….References :

  14. Apu Nahasapeemapetilon

    Dems stop it themselves!References :

  15. snickers

    OH MY GOSH! Where are you learning these lies from! Congress is to blame ! Man they are evil! You need to find some other source, cause this is BS! McCain is the one who said he wanted to cut the tax on gas. Democratic Congress is OWNED by the oil companies and that is the one and only reason they cannot support drilling in America. Man so many naive people on this site! Politicians are DIRTY remember.References :

  16. mike m

    Penalize companies for achieving the American dream of success, real smart. What incentive is there to become successful if you will be penalized when you do so?? Kinda reminds me of that plan put out there to help health care, where you regulate a doctors salary, great idea. Then all of the brightest minds out there will forego medical school, and instead become go into a field where they can make money.

    And this coming from someone who wants to lead the country…..References :

  17. Philip McCrevice

    Oil companies make 7-9% profit. That is a normal profit margin. Government makes about 14% on the price of gas. Why hasn’t the government lowered their "profit margin?"

    It’s not the oil companies’ fault OPEC refuses to increase production and Democrats refuse to let them drill in America.

    Supply is flat. Demand is skyrocketing thanks to China and india.

    You do the math.

    But don’t blame the oil companies.References :

  18. Final Frontier

    It goes against the free market principles on which this country was founded. Where would it stop? If Democrats can go after oil companies, they can go after any company. Before you know it, they’ll try to push for more control over insurance companies, money lenders, and hospitals. Oh, that’s right, they are trying to do this.References :

  19. George D

    What is an "unreasonable" profit?

    And even if I were to accept such a nonsensical concept there is nothing to prevent such taxes being passed right on to the consumer.

    How about increased drilling, exploration, and refining? Why do they oppose those at every turn?

    Why are they proposing 50 cent per gallon additional taxes?

    How about tabling the wasteful, expensive global warming legislation until later, especially when you consider that this has been the coolest year in the last 20 and global average temperature has been decreasing since 1997?

    The fault for the gas price belongs in one place – the democrat congress.References :

  20. G-gal

    Do we really want congress deciding how much profit is to much? What is to keep them from going after McDonald’s, or Wal Mart for making to much money, or from my small staffing company. Who gives them the right to determine what is "unreasonable"? The reasons for gallon being over $4.00 an hour has more to do with things congress actually has over site over, they are trying to switch the blame. Congress needs to allow drilling and ease up standards to allow new refineries to be added. That would make a world of difference.References :

  21. Michael S

    The United States is a capitalist nation. The government is not supposed to determine what is reasonable profits and not. Their profit is based on volume, use less oil and their profit lowers. Even if the tax passed – how would it benefit you? It would raise the prices of gas even furtherif they taxed them further. I don’t want the government dtermine my profit margin for me – thats what you are openning the door to with this.References :

  22. Doug S

    Uh, do you even know what you are defending the democrats for? Let me explain. Oil companies are only making 7% of what we pay at the pump when the government is already making 15%-20% in taxes of what we pay at the pump. The government does nothing but take money while the oil companies are the ones who have to extract the crude oil, turn it into gasoline, and then pay their trucks to deliver it to the gas station. They do all the work, why take money from them when the government doesn’t do a thing but take money from the profit? Tell your democratic Congress to start allowing us to drill in ANWR, off the coast of Florida, off the coast of California, or in the midwest where they have found oil so we can be oil independent for a while and lower the cost of gas.References :

  23. Andy G

    Because the Dems wanted to drink that Oil MILKSHAKE! By taxing it.References :

  24. geonomad2000

    The Government does not "grab" profits made by corporations. That would be highly illegal and completely Anti-American.

    Who the hell is the Congress to determine what is a reasonable profit?

    What is wrong with people in this country to even consider something like this. This is getting ridiculous.References :

  25. dadvice1

    Because it’s a bad idea.

    Why not a windfall profit tax on Microsoft or Kraft foods?References :

  26. bubbles

    republicians are always for the big businesses and will not do anything against themReferences : some also have investments in some of the businesses as well

  27. McCainocrat

    Because Jimmy Carter already tryed that, it failed miserable. Jimmy Carter………Barack Obama, the merry go round continues.References : McCain’08
    http://mccainocrats.blogspot.com/

  28. His Divine Shadow

    Probably because they realized that even now, the government gets a higher percentage of oil revenue than the oil companies do. Oil companies keep about 7% of total revenue that they earn by exploring, extracting, refining, and delivering a product to the people – the government gets more than twice as much of the revenue from oil sales for doing nothing.

    Taxing the oil companies reduced their incentives for performing value based activities like additional exploration, building of refineries, extraction and delivery, which can only hurt supply even more. It would only worsen an already bad situation. Besides, oil companies don’t pay taxes, they push them on to the consumer. This policy would RAISE prices, not push them down.

    Bottom line, windfall profit taxes punish success. It is always a bad policy and is even more so now. The people pushing this legislation clearly have a very limited understanding of the economic impact it would have.References :

  29. Another

    They are being paid off one way or the other.

    Nothing new here.

    Why do you think the value of the dollar has dropped so low? So that American COMPANIES can sell their goods overseas. This was engineered. Course Americans can’t go on vacation …that’s OK for the COMPANIES …they can stay home and buy more crap HERE.

    Why do you think the cost of oil is so high? Because our dollar is worth so little.

    In the meantime, other COMPANIES are ravaging America, like the Banks and Mortgage companies who have sold lame deal loans …when those loans tank …instead of gong bust (the banks for their bad biz) the government steps in with OUR tax dollars, and bails them out.

    The excuse for your question is that they need that money to "expand" their exploration efforts.
    The REAL reason, is so that they can make more PROFITS at the expense of the American people.

    This is all compliments of GWB administration. They set this up. Though I will say, the issue of oil as we are having it now, should have been dealth with 30 years ago.

    Problem with Democracy is that it’s life span is Day to Day.
    Why plan and be voted out for your trouble today …when you can let the cart tip and then rush around looking like a savior

    …and be the hero of the day?References :

  30. discombobulated

    Why should a company have to forfeit its profits to you. That’s the whole point to having a business is to make profits. This is why as a liberal minded person I will never call myself a Democrat they just make no sense. Unless you can prove they’ve done something illegal then they have a right to those profits.References :

  31. Richard L C

    Because Democrats *believe* in your stupidity. They’ve got you believing the price of oil is somehow the oil companies fault and that more taxes will somehow punish them and make your life better.

    Any tax increase will come directly out of your pocket, how can you not understand that? If congress put a 50 cents a gallon increase on gas, gas will go up by 50 cents a gallon. Your lack of understanding of basic economics beclowns you. :)References :

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