I'm just curious to see your take on the WPT,
I'm highly against them. When factories in New York do well, they are not taxed extra, and the profits from them would certainly not end up in the southwest, so I see it basically as stealing for the federals to tax one industry that's doing well.
While I do like the government to keep a keen eye out for anyone breaking anti-trust laws, unfair business practices, etc, windfall profit taxes are wrong.


Windfall Profit Taxes Fuel America's Addiction to Foreign Oil

March 31, 2006 — By National Center For Policy Analysis

DALLAS, TX. — As compared to other industries, profits in the oil industry are not unusual, despite claims to the contrary by proponents of a so-called "Windfall Profits Tax" (WPT) aimed at our nation's energy companies. Further, according to a new report released by the National Center for Policy Analysis (NCPA), such a tax is more likely to increase the United States' dependence on foreign oil rather than reduce it. The report can be accessed online at - http://www.ncpa.org/pub/ba/ba549/.

"There is no evidence that the oil industry has colluded to keep retail gasoline prices high," said NCPA Senior Fellow H. Sterling Burnett, who co-authored the report. "The Energy Information Agency (EIA) found that approximately 85 percent of the changes in gasoline prices in the aftermath of Hurricane Katrina were due to changes in the market price of crude oil."

While oil companies have recently enjoyed record profits, their profit margins have historically been below the market average. Between 1970 and 2003, the return on oil companies' investments averaged less than the rest of the economy. Even with recent increases in profits, they are still near the national average, according to data compiled by Standard and Poor's Compustat.

For instance, oil and gas industry profits were 8.2 percent of sales in the third quarter of 2005, 21 percent higher than the national average of 6.8 percent. By contrast:

* Household and personal-product industries, with an 11.4 percent profit, were 68 percent above the national average;
* The semiconductor industry, with a 14.1 percent profit, was 107 percent higher than the national average;
* The banking industry, with an 18 percent profit, was 165 percent higher than the national average.
* Furthermore, oil and refining company profits per gallon of gasoline sold were lower than the 23 percent average federal and state tax per gallon.

Most Americans consider our current reliance on foreign oil as too much. Yale University conducted a survey which revealed that 93 percent of Americans believe the country's foreign oil dependency is a "serious" problem; 63 percent consider it a "very serious" problem. Yet a WPT would only increase those concerns. According to the Congressional Research Service, the last time a WPT was imposed it reduced domestic oil production between 3 and 6 percent and increased oil imports between 8 and 16 percent.

Burnett concluded, "Before casting aspersions on the oil and gas industry for profiting from the recent rise in prices, Congress should note their own contributions to the current high prices of gasoline and natural gas."
- http://enn.com/aff.html?id=1203



Renzi seeks investigation into gas price hikes:
Arizona Congressman Rick Renzi wants federal hearings and investigations to look into skyrocketing gasoline prices, as well as a large severance package for retiring Exxon Mobil Corp. Chairman Lee Raymond.

Gasoline prices in Arizona, California and nationally are fast approaching $3 per gallon.


Renzi, a Republican who represents most of rural Arizona, wants Congress and the federal government to look at high prices, record oil-company profits and "swelling executive salaries."

Renzi and others are upset that Raymond is getting a mammoth $400 million retirement package.

Exxon Mobil turned a record $36 billion annual profit last year.

"Rising oil prices threaten to hobble America's economy," said Renzi, in a statement. "And if terrorist concerns and other world events were not troubling enough, now we see the outgoing chairman of Exxon fleecing our great nation. Enough is enough. This obscene retirement package makes a mockery of Americans who are forced to pay exorbitant gas prices just to get to work."

Exxon officials were not immediately available to comment on criticisms of high gasoline prices, corporate profits and Raymond's package.

The Texas-based giant is the biggest of the big oil companies and passed Wal-Mart Stores Inc. (NYSE: WMT) as the largest company on the Fortune 500. Chevron Corp. (NYSE: CVX) placed fourth on that list, ConocoPhillips (NYSE: COP) sixth.

Exxon Mobil (NYSE: XOM) posted a whopping $340 billion in revenue last year and Chevron $190 million, according to Fortune.

Renzi has been the most aggressive Arizona federal lawmaker on the gas price front, pressuring the industry during last year's price spikes.

The industry blames high global demand, international tensions (including Iran, Nigeria and Iraq) and tight U.S. production inventory and limited infrastructure for the gas price gains.

Critics, including a number of Democrats, favor anti-price-gouging laws, antitrust investigations and windfall profit taxes on the oil industry.

Democratic Gov. Janet Napolitano has been critical of the Bush administration for not addressing fuel price run-ups in the past.
- http://phoenix.bizjournals.com/phoen...17/daily7.html


Here is a bill:
Kucinich’s bill, HR 2070, will:

· Institute a windfall profit tax on gasoline and diesel. Such a tax is to be imposed on all industry profits that are above a reasonable profit level. This proposal would not increase the cost of gasoline because this proposal does not tax the price of gasoline. It only taxes excessive profits of refineries and distributors. Any attempt to increase prices to recover the lost revenue in taxes is simply taxed at 100% making the price increase worthless.

· Transfer the revenue from the windfall profits tax to Americans who would buy ultra efficient cars, made in America, with a tax credit. These will be made directly available to the purchaser of a car that traveled over 65 miles on a single gallon of gas. Today average cars get less than 30 miles per gallon.

· Establishes a broad based, far reaching program to promote mass rail transit inter- an intra- city. The bill makes funding available to regional transit authorities to offset significantly reduced mass transit fares during times of gas price spikes.
- http://www.commondreams.org/news2006/0412-03.htm
Supporting fuel efficient cars and searching for alternatives is great, but not by taxing a specific industry, and as insult to injury, the one it seeks to kill.