Bush rejects tax on oil companies' windfall profits

[liberal N proud]

President expects companies to invest in alternative fuels

WASHINGTON (CNN) -- President Bush on Friday rejected calls to tax oil companies' record profits fueled by high oil prices but said he expects those companies to re-invest those profits into alternative fuels and new energy technologies.

"My attitude is that the oil companies need to be mindful that the American people expect them to reinvest their cash flows in such a way that it enhances our energy security," Bush said, which includes investment in new pipelines, expansion of refineries and more exploration and investment in renewable sources of energy.

"They also expect to be treated fairly at the pump," The president said.

"These oil prices are a wake-up call," the president said, and re-enforces the need to develop alternatives to gasoline such as ethanol.

http://www.cnn.com/2006/POLITICS/04/28/congress.oil/index.html

[electron_blue]

1. yes, please be "mindful". Crap, he sounds like Bush the Buddhist

[Left Coast Lynn]

2. I'm shocked.

Shocked, I say.

[saigon68]

12. Shocked

[radfringe]

19. shocked and AWED I Am

gee and it only took, what? a week? to make that decision?

but seriously, no surprise he would be against anything that would hold his oil buddies accountable

as a side note -- anyone else notice that since the uproar over gas prices, congress giving the appearance of doing something about it - that the gas prices went down a few cents?

Locally they went from 2.95 to 2.89/gal today

[saigon68]

20. They are still making--well ---- Billions

[Beaverhausen]

3. And down, down , down goes his approval rating

how low can he go?????

[rodeodance]

4. NOW he talks of alt. fuel needs and has not asked for conservation.

[Call me Deacon Blues]

5. Worst. President. Ever.

How can 30% of America be so f*cking stupid??

[DancingBear]

6. Exactly HOW much $$ is Archer Daniels Midland "contributing"

to the Bush/Cheney back pocket (er, I mean Republican Party) in this election cycle??

Bush wouldn't know ethanol if it bit him in the ass. Someone probably told him it can be distilled, so he's waiting for a couple of quarts to be left out by the back door. Laura can bring 'em in after she finishes the Marlboro Light.

[Fredda Weinberg]

7. If the $$$ were re-invested they wouldn't be profits n/t

[Jansen]

21. My

"If the $$$ were re-invested they wouldn't be profits n/t"

I was thinking the same thing when I heard similar commentary on the radio. Wouldn't R&D money spent be classifed as an expense and therefore not in the profit column?

I think the argument that the money is needed to re-invest is a red herring to throw off people who are too busy to think it through. Unless the amount of R&D money spent is in relation to the % of profit i.e. if you cut their profits they will reduce research money.

[Fredda Weinberg]

23. You get the kewpie doll n/t

[toopers]

44. one years profits (positive cash flow)

can be invested into R&D to drive future cash flows.

[aquart]

8. Surprise.

[DemoTex]

9. Here is a translation of the Bu$h message to the American people:

[Initech]

10. Then why is Exxon/Mobil's CEO making $400 million?

And is making out like a bandit thanks to Bush's tax cuts for the super-rich? Explain that, Dumbya!

[Sequoia]

11. He's the wake-up call.

[Roland99]

13. Obviously they'll invest in new capital and that will create new jobs

:sarcasm:

[high density]

14. They "re-invest" the profits...

into dividend payments to shareholders and bonuses for the CEOs. The oil companies don't give a shit about R&D unless it's another way to keep us using a lot of oil.

[phusion]

15. BREAKING: Bush to leave moon landing task up to Boeing & Lockheed n/t

[trogdor]

16. Yeah, we should TRUST Big Oil.

That's it. Don't worry about three dollar gas; it's helping pave the way to our bright, shiny future! Shaaa, as if.

[pinniped]

17. Well, color me surprised.

.

[genieroze]

18. expects those companies to re-invest those profits into alternative fuels?

Crap in one hand and and wish in another and see which one gets filled first.

[BootinUp]

22. Jaw Bone economics.

That'll work dubya! You got em worried now!

[truth2power]

24. The dictator speaks....

"Bush called on Congress to give him the authority to set the standards for passenger cars sold in the United States as a means of reducing the nation's demand for gasoline."

"I encourage them to give me that authority," Bush told reporters during a visit to a service station in Biloxi, Mississippi. "It's an authority I used for light trucks, and I intend to use it wisely if Congress will give me that authority."



I didn't know it was the President who set the standards. I thought Congress did that. Is he channeling his dictator mode again?

[saberjet22]

47. Bush wants more authority

"I encourage them to give me that authority," Bush told reporters during a visit to a service station in Biloxi, Mississippi. "It's an authority I used for light trucks, and I intend to use it wisely if Congress will give me that authority."
Bush is too stupid to use anything wisely. He is not capable of it. Give him authority over anything and he'll screw it up worse than it ever was. The man is an incompetent idiot.

[Haole Girl]

25. Bush Rejects Calls for Tax on Oil Profits

Bush Rejects Calls for Tax on Oil Profits

By JENNIFER LOVEN, Associated Press Writer
1 hour, 52 minutes ago

WASHINGTON - President Bush said Friday that taxing enormous oil industry profits is not the way to calm Americans' anxieties about pain at the gas pump, and that his "inclination and instincts" are that major oil companies are not intentionally overcharging drivers...

Some Democrats have viewed this week's announcement by major oil companies of huge first-quarter profits as a chance to renew their push for a windfall profits tax. But though a few Republicans, including Sen. Arlen Specter (news, bio, voting record) of Pennsylvania, have said the idea ought to be examined, Bush and most GOP lawmakers strongly oppose it.

"The temptation in Washington is to tax everything," the president said in a wide-ranging news conference...

[Haole Girl]

26. Here is the link:

http://news.yahoo.com/s/ap/20060429/ap_on_go_pr_wh/bush;_ylt=ArKMZhblIRs7QfjzEJH_HA2s0NUE;_ylu=X3oDMTA2Z2szazkxBHNlYwN0bQ--

[Bluebear]

27. Quelle surprise. nt

[bluem]

28. I made a post yesterday

about how my republican step-father thought that it was because we were taxing them so much that prices are so high...

[spag68]

30. Federal gas tax 18 cents is too much!!!!!!!!!

[Spider Jerusalem]

32. Eighteen cents is TOO MUCH?

When state taxes are even higher?

And those eighteen cents are used for maintenance of the federal highway system. You LIKE having the Interstates to drive on, yes? Would you like it if they suddenly stopped any maintenance and upkeep for lack of revenues? Somehow I don't really think so.

[lostinacause]

34. Given the externalities associated with consumption, the tax is likely

too low.

Also "them" likely refers to the oil companies.

[rusty charly]

29. conversely

"The temptation with Republicans is to tax-cut everything,"

[Erika]

31. Bush and Cheney have made a fortune

from their oil profits since Iraq. You think they were oilmen, for oilmen, and by oilmen? They've pretty well screwed our country but they are some heckovarich guy group. You think this might have been planned from 2000?

[lostinacause]

33. Bush is likely right on this one.

Windfall taxes send strange incentives to those thinking about investing in risky sectors especially those that have bad reputations. Given the costs of implementing a windfall taxes program (as oil companies will understandably fight this proposal) and the losses due to adjusting the incentives this type of plan is likely not worth it in the end.

There are a number of way to get money from oil companies that are currently not being used by the Bush administration. The two most important steps that should be taken are removing the tax breaks that Bush gave the oil companies when the price of oil was high as there is absolutely no reason to give them the tax break and implement the proper royalty system of federal lands. The federal government should be managing those resources on behalf of the people.

[Haole Girl]

35. good post. will YOU run for office....please? n/t

[lostinacause]

36. Probably not. I lack the charisma and don't like to compromise my ideals.

It is very difficult to get elected with these traits especially not being willing to do the wrong thing to gain support.

Many of my views don't appeal to a wide group of the population. I care too much about equality for the typical conservative to vote for me and too much about efficiency for the typical liberal to vote for me.

It's possible, and perhaps likely, that some of my ideas will spillover into the political realm in one way or another.

[Haole Girl]

37. not being willing to do the wrong thing

Not being willing to do the wrong thing to gain support is a rare quality these days, no doubt.

[lostinacause]

38. It's not that rare of a quality in people. It is just difficult to advance

yourself without compromising you beliefs. Many people here would not be willing to compromise their beliefs though it is unlikely that they would get elected. Those who are electable are so in spite, rather then because of their beliefs.

[Haole Girl]

39. I know what you mean

in spite of...for sure. ;-)

[lostinacause]

40. Unfortunately there is little that can be done about this problem.

It's present in all democracy and unless people devote excessive amounts of time to getting the knowledge base necessary to properly monitor the government the problem will continue to exist.

[Thor_MN]

43. Please don't sell yourself short.

Lately, I find that it is the rare person who has logical, well thought out beliefs in the first place, much less someone unwilling to compromise them.

[Haole Girl]

41. Another silly Bush quote:

With gasoline topping $3 a gallon in some areas, Mr. Bush said energy companies should use their increased cash flows to build more natural gas pipeline, expand refineries, explore "in environmentally friendly ways," and invest in renewable sources of energy.

http://www.cbsnews.com/stories/2006/04/28/business/main1556306.shtml

[Bluebear]

42. .

.

[leesa]

45. And the foolish Bushbots will swallow it whole...

[zann725]

46. 'Rejects tax on oil companies?' NO...say it ain't so?!!

And his gratuitous words that he's seriously seeking "alternative" fuels should make his nose grow like Pinnochio. Pleeeese!

[Godhumor]

48. Speaking as a history teacher

*'s attitude on this whole gas crisis reminds me a lot of Hoover's negligent response to the Great Depression, and his idea of companies voluntarily cooperating to keep jobs secure and prices reasonable. Of course, that didn't turn out well (There are many other comparisons that can be made between * and Hoover, as well--none of which are good for us.).

If history truly does repeat itself, I dread to think what the next two years will bring as far as economic relief. Of course, if history really does repeat itself, we're talking a pretty secure advantage for the good guys in the next presidential election.

[Media_Lies_Daily]

49. Gee...that's a real surprise.