Political Punch

Paul Gallagher, you are really confused. The oil companies --- the ones that Obama is targeting --- profits are made from crude oil not from gasoline sales. With oil <$50/barrel there is a big problem in that industry

It's worth noting that "windfall" profits (i.e., profits on private goods with relatively inelastic demand)can occur even when crude oil prices are low. In fact, oil companies are probably collecting bigger windfall profits now than they were last spring. That's because prices for gasoline and other refined products are falling at a slower rate than their crude-oil costs.

What's sad about this episode is that the Obama team chose not to announce its change in strategy on the tax, but only remove it from the website and wait for someone to call them about it. That's Bush-league communications. Obama needs to be reminded that we expect better of him.

How can you put a tax on a business specifically designed to prevent or discourage them from making a large profit, and then claim that it will not harm the industry?

Now is exactly the right time to put in a windfall profits tax. If you wait until the next time energy goes through the roof, it will be too late. Kind of like shutting the barn door after the cows leave. Put the law in place now. Who cares if you don't see a penny for a couple of years! What does it cost to enact such a law? ZERO, but what does it cost if we don't enact it now before its too late?

Sirota's approach doesn't make any sense. Pass legislation and then don't use it if there are no windfall profits? If there are no windfall profits, why pass legislation to begin with?

Did Obama just break his first campaign promise?

No. Like Bush he broke his first campaign promise early in the primaries.

Maybe you whiners would rather have Alfred E. Bush for a third term?

Would some brilliant liberal please explain to me the logic of a windfall tax anyway? How do you tax a public company? It ALL get's passed on. The first corporate responsibility is to increase shareholder value. Profits made go into stockholder value, in turn improving the values of 401K, mutual funds and share holders around the world. Anyone who holds a mutual fund has probably been an owner in "evil Exxon" at some point. You punish Exxon, you punish honest, hard working people. I'm sure many of you Exxon haters were jumping for joy during the bull market from the last 6 years (2001 to 2007). You're probably the same ones who are griping about Exxon now. Exxon DOES NOT set the price of oil. Plus, service stations are just as culpable at pushing the price of gas upward. If you really think companies like Exxon just "use", then you're just as much a "user" if you drive a car or use. Why don't you put your money where your mouth is and ride a bike everywhere? Otherwise you're a hypocrites...

Ha Ha Ha its only the beginning LOL LMAO

I meant "why should there be" in my post

The oil companies are not making windfall profits anymore. The recession is hurting them too, just like everyone else. So what should there be a windfall tax on the oil companies if they are not making windfall profits?

"I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills."

Ummm, the critics seem to forget that there are no longer windfall profits and energy costs are groundrocketing. Sheesh. I'm a Republican and I have to defend him against his own wingnuts.

Let's stop blaming the people at the top.

The truth is that a windfall profits tax won't do much to solve the foreign oil dependence problem.

Every State has the power to increase the sales tax it charges on petroleum products. Stop whining and write your state assemblyman, senator or governor and insist on an increase in that tax.

After all, taxes are going to have to be increased on SOMETHING OR SOMEONE to pay for the schools. Also, in the case of businesses, the state taxes paid may be deductible on federal taxes :)

I still think we need the tax to be IN PLACE so when the prices do go BACK UP and you know they will the statue will be there. Further I do not care what the price of oil is, I care what is the amount of outlandish profit that they (the olil companies) are making.

geecee: 'He cannot make the recession worse by making rash decisions, even if he "promised" to do something.'

But...but...but he made rash PROMISES! And I do like the way "promises" was qualified. Just kiddin', didn't really mean...

I'm just enchanted by the feeding frenzy, and some of his followers are right there with teeth bared...this is delicious!

"I think we need to only implement taxing them when they raise those prices again."

Exactly. Because the oil companies won't pass those higher taxes onto the customer and increase gas prices even higher!

Brilliant!

I'm sorry I voted for Obama. Not one day in office yet and he's proving to be as big and nasty a liar as GWBush was. Sigh. Who stole my lovely America from me for so long now?

Well he's starting to look just like all the other lying scum bag politicians. Once you get elected who cares. He also has changed his mind on the war and the Bush tax breaks for the rich. All that and he hasn't even taken office yet. I wonder what else he won't do. The only thing the guy was interested in was becoming the first black president. He could care less what happens to the rest of us, his family will live in the history books for ever.

Good Lord people! Isn't there something constructive to add?! He has not taken office yet. One day the stock market gains over 500 points the next day it's a freefall of 680 points. Things are good overseas and then Mumbai hits. He is trying to set up the best cabinet to deal with what might happen after he takes office. If he has to modify based on actual events AFTER he takes office, he will. That is not "breaking promises",that is just good management. If you are concerned with what is happening now, President Bush is still in office. Otherwise, remember patience is a virtue and wait until after January 20, 2009.

Yea yea yea...some we'll always find words to justify Obamas flops.

That can go on for a while. The fact the guy is bringing all those power houses in his cabinet is to control them well and learn from them at the same time. It will be very hard from them to go out and criticize him afterward, . I have to give credit to Obama as a politician. Who knows what will come up out of his government, no one can predict since the guy has not record at all.
Let's try to be optimist but cautious and treat the guy fair but demand real change and to fulfill his promises otherwise he will pay a big prize.