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| Windfall Tax on Big Oil Fails Again |
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| Written by Miranda Marquit | |
| Tuesday, 10 June 2008 | |
Photo: Misterbisson, Creative Commons, Flickr Senate Democrats once again tried to push through a bill to create a windfall tax on Big Oil profits. And, again, it failed. In order for a debate on the bill to even be opened, 60 votes are needed. Those votes were absent, and so the windfall tax on Big Oil profits dies another day -- probably to be resurrected again in the relatively near future. Exxon Mobil (XOM), a company that Barack Obama mentioned by name in a speech taking aim at Big Oil profits, insists that more taxes will not alleviate the problems that many American families have, due to high energy costs. MarketWatch looks at what both sides of the debate over a windfall tax on Big Oil are saying:
Raising taxes won't help lift the U.S. out of its economic slowdown, [Euler Hermes economist Daniel] North said. ... Schumer and Sen. Richard Durbin, D-Ill., are proposing $10 billion to $12 billion for immediate relief to consumers this year.Exxon, and other Big Oil companies insist that if they are allowed more leeway for exploration and drilling, the energy crisis could be solved. However, I remain skeptical of such solutions. Taxing Big Oil into oblivion (although the companies could do without their government subsidies) isn't the solution -- even if some of that money would go to helping consumers. Companies would likely just raise prices to compensate anyway. Instead, incentives should be offered to encourage Big Oil companies -- and other energy companies -- in efforts to develop alternative fuels and invest in renewable energy. Eventually we will have to move away from fossil fuels altogether, and we have reached a critical juncture. Instead of clambering for the government to do something to Big Oil, the public needs to demand that the government start looking into sustainable alternatives, and creating reasons for Big Oil, as well as other energy and technology companies, to move away from the status quo and start innovating. Disclosure: I do not own XOM. Site disclaimer. 2008 Elections 
Alternative Energy 
Big Oil 
Government 
Miranda Marquit 
XOM 
Comments
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written by David Neubert , June 12, 2008
Let's start with removing oil company subsidies. Windfall profits taxes only encourage more congressional lobbying and increase the unpredictibility of extractive businesses. However, a carbon tax based on removing carbon based products from the earth would not be a bad idea. And business could adjust accordingly. Heck, you could even use the carbon tax to offset corporate income tax if you really want to.
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written by Miranda , June 12, 2008
I agree completely. We should start by getting rid of subsidies (something that was in the failed bill) and creating incentives (also something in the bill). Extra "windfall" taxes won't help anyone.
I do like the carbon tax idea, though. Tag it:           | |
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