Republicans Bail Out Big Oil
Jun 11, 11:56 AM CST
Republicans in the Senate successfully filibustered a bill that would have levied a tax on the record-breaking windfall profits flowing into Big Oil’s coffers. The bill also would have given the US an avenue for legal action against OPEC.
“We’re not afraid, on this side, to go after Big Oil when they are not doing the right thing,” said Sen. Charles Schumer, D-New York. “And we are not afraid to go after OPEC because they are a cartel that squeezes us.
“We’re not afraid to do some strong tough things that will—some in the short run, some in the longer run—that will bring down the price, the all too high price, of gasoline.”
The country’s largest oil companies collected about $36 billion in profits in the first quarter this year. That’s an increase of 17% from last quarter.
“Windfall profits” are extra profits gained due to an unexpected change in the market – in this case, rapidly rising prices – that were not factored into the firm’s production decisions. Therefore, taxing those profits does not create an incentive for the firm to produce less, because the firm did not plan on making those profits anyway.
Senator Ben Nelson voted with the Democrats to end the filibuster.
– by Eric Van Horn | Send this to a friend
— Robert Smith Jun 11, 07:00 PM CST #