Kucinich:Only 1 Way To Stop Gouging At The Pump: 100% Excess Profits Tax

[Tanyah]

WASHINGTON - April 26 - Congressman Dennis J. Kucinich (D-OH), author of HR 2070, a bill to place a 100% excess profit tax on the oil companies, gave the following speech today on the House floor on the rising cost of gasoline:

“Congress must break the hold that the oil companies have on the politics of our country. The American people are demanding action. The price of gasoline has climbed to over $3 a gallon, heading towards $4 a gallon and maybe $5.

“Since 2001, the five largest oil companies have made over $280 billion in profits. Exxon Mobil alone made $36 billion in profits in the last year.

“There is only one way to stop the oil and gas companies from an endless series of increases in the price of gasoline.

“Almost fifty Members of Congress have now signed onto my bill, HR 2070, for a 100% excess profits tax on oil companies’ profiteering.

“This act does not tax the price of gasoline, so it will not increase the cost. However, by taxing excessive profits, it puts the brakes on price gouging and will lower the price of gasoline.

“Congress can not stand by while the oil companies are stealing from the American people.”

http://www.commondreams.org/news2006/0426-06.htm

[mconvente]

1. alright! go dennis!

Who knows if we'll get any repuke support (doubt it) but it shows the people of America that Democrats are the ones leading on this issue. Welcome to DU! :hi:

[Karmadillo]

2. An Opposition Party that was tired of being the Opposition Party

would get behind this in a big way.

[uppityperson]

3. Good idea, kick for a good idea.

[TheFarseer]

4. This is too socialist for me

Who's to say what "excess profits" are? I'm all for a tax on oil company windfall profits based on some kind of percentage but this is a bit overboard. If this goes through (not like I think it will), they have no incentive to keep down costs like $400 million dollar retirement packages and 2 million dollar parties with caviar and ice sculptures. Might as well waste as much money as possible since you can only have so much profit.

[unblock]

5. too easy to corrupt. the president appoints all 3 board members

and the board determines what is a reasonable profit.

so shrub appoints mr. and mrs. lay to the board and a token democrat and by 2-1, the reasonable profit for a gallon of gas is $10.00, which means that shrub can sign this into law with much fanfare and it never does a damn thing.

NO TEETH!

[NewJeffCT]

6. How do you determine excess profits?

First, I want to say that I think there should be some sort of excess profits tax...

But, how do you do it?

ExxonMobil made $36 billion last year. However, their revenues were around $360 billion in total, meaning their net was 10 cents on the dollar

By contrast, Pfizer made a "mere" $8.1 billion last year, on revenues of "only" $51 billion. However, they made over 15 cents on the dollar, a much higher rate of profit than ExxonMobil.

On the other side, Wal-Mart also had over $300 billion in revenues, but their profits were a fraction of ExxonMobil's at

Do you tax anybody over a certain dollar amount of profit? Do you tax them over a certain revenue threshold & profit rate? Do you then worry about big corps playing more accounting tricks to avoid paying the excess tax?

[Karmadillo]

7. Morning kick for DK

nt