DEMAND Windfall Subsidy Profits Tax!

[Earth_First]

Last year's high oil prices not only helped Exxon Mobil report $US36 billion in profit - the most ever for any corporation - they also allowed Lee Raymond to retire in style as chairman of Exxon Mobil.

Mr Raymond received a compensation package worth about $US140 million last year, including cash, stock, options and a pension plan. He is also still entitled to stock, options and long-term compensation worth at least another $US258 million, according to a proxy statement filed by Exxon with the Securities and Exchange Commission.

The total sum for Mr Raymond's golden years comes to at least $US398 million ($545 million). The compensation is among the richest known and is certain to provoke criticism of profiteering from oil prices - though oil companies say fluctuations in prices are outside their control.

http://www.smh.com.au/news/business/exxon-chairman-walks-away-with-545m/2006/04/13/1144521461216.html

Does this sound like an industry that needs a government windfall subsidy?

I am so ANGRY!

[SlipperySlope]

1. Would you give them the taxes back in years when they lose money?

That only seems fair. Take the money from the bastards when they make too much, but give it back to them if oil prices fall and they can't make a profit.

[Earth_First]

3. Absolutely not!

They can piss up a rope for all I care.

[SlipperySlope]

5. That just sounds anti-capitalist and anti-business.

N/T

[thethinker]

6. Windfall profit tax

was designed to limit profits and keep corporations from robbing the public.

There is a real difference between normal profits from regular business and profits from things like gasoline and home heating that people have to buy.

Capitalism has to be regulated. Otherwise, corporations turn into robber barons. They have done this in the past and the country had to regulate them. This type of thing caused the last depression.

Large corporations have congress in their pockets. They have bought and sold our congressmen - both Democrats and republicans. They own them. Otherwise, there would have put Windfall Profit tax on oil several years back.

The oil companies robbed California before Bush was president. They were practicing to do the same thing to all Americans. Electric has gone up 80% in two years in Houston. In Houston people have to air condition their homes or they would die. There was a older lady on TV they other night. Her heating bill was $800 for one month. She is on social security and does not get much more than that a month to live on. What is she going to do this summer?

Oil companies have a right to normal profits. They have no right to rob the public. If we had a Windfall Profit tax on oil, you would see the price oil go right back down.

[SlipperySlope]

7. Windfall taxes

Windfall taxes wouldn't do squat to the price of oil.

Oil is an international commodity. There are larger forces at play here then the profits of Exxon or other American companies.

We are several years into a bull market for ALL industrial commodities, not just oil. Here, look at the graph of the price of oil over the past few years:



Now look at some other commodities:



It isn't odd at all, or a sign of manipulation, that Oil is sky-high. What WOULD be odd would be if oil was flat while all the other commodities took off.

[jsamuel]

8. too bad gas prices don't match that, look at that "20 year low"

Gas prices have been higher and higher... I understand the point you are trying to make, but...

Gas prices when gas is $65 a barrel NOW ---> 2.89
Gas prices when gas was $65 a barrel ---> 1.99 a few months ago
Gas prices during the "20 year low" ---> 1.59
Gas prices 7 years ago ---> 1.09
(where I live)

It is bunk.

[SlipperySlope]

9. Point taken...

Gas prices move somewhat separately than oil prices.

Oil is pretty standardized and all nations are competing for the same commodity.

Gas is a local product - U.S. Gas is refined to different standards than other countries.

It would be possible to have a glut of oil, but a shortage of gas, if we didn't have enough refining capability.

I concede the point that gasoline is much more subject to price manipulation than oil prices.

[unblock]

4. that's why wall street invented derivatives

so companies that are all about one product don't have to bet the farm each quarter on the price of their commodity.

they are supposed to sell away these outsized profits in exchage for protection when the market moves against them.

the fact that they DIDN'T hedge away outsized profits strongly suggests that they knew enough to bet the farm on gas prices staying high.

[unblock]

2. now now, i'm sure he made some very tough executive decisions

like, say, continuing to pump oil.

"let's sell some gasoline today". "damn you're good mr. raymond, brilliant decision!"

or

"let's raise gas prices some more". "is there no end to your genius, mr. raymond?"

or

"let's give money to politicians who destabilize our competitors and who would never dream of imposing a windfall profits tax." "greedy AND evil, mr. raymond! give yourself another raise!"