Gasoline prices - PA Gov Rendell calls for windfall tax

redchief wrote: Gasoline prices are continuing to skyrocket. Fuel companies are leaving gas stations, especially in the mid-Atlantic states, dry. They claim it isn't a shortage of ethanol based gasoline so much as it's a problem of delivery. Most economic forecasters agree that gasoline will be $4.00 a gallon by this summer.

Regardless of how you feel about the upward price spiral of gas, there is no doubt that the big oil companies are cleaning up. There have been claims of price fixing by the oil companies, there have been more of playing shell games in order for us to believe that there really is a shortage. PA governor Ed Rendell went on record today calling for a windfall profit tax on the oil companies. In 1999 the oil companies made an average 23 cents on each gallon of gasoline sold. Right now they're making nearly a dollar on each gallon and this promises to go up as prices increase.

Do you think a windfall tax is justifiable, or do you think that the oil companies have a right to make as much money on the sale of fuel as they can?

holley79 replied: I'm not really on the up and up on what a "windfall" tax is. I am guessing that is where there is a "cap" on how much tax there can be? Ed, if you could explain to me then maybe I can give a better answer.

I personally am just beside myself with these gas prices. I drive 25 miles one way to work daily. I have a 2000 Dodge Ram that is not economical where gas is concerned. Nothing like dumping 81.00 into a tank full. Something has got to give.

redchief replied:
A windfall profit tax is a punitive tax imposed upon a company or group by either a federal or state government when it is determined that company or group has made unfair profits on the backs of the citizens.

holley79 replied:
Well then I my opinion is they are making WAY too much profit. lol

punkeemunkee'smom replied: Incredibly good question Ed! Even though it hurts me (really, truly, literally hurts me ) to say this I believe they have the right to make as much money as they can...Free enterprise dictates this to be so. Of course the opposing arguement can be made that we are forced to pay whatever price they set and therefore it is unfair of them to be able to up prices in a seemingly limitless way. It is rather like starbucks coffee-same beans as the local 7-11 but they can charge $5 a pop because it is gormuet the lines are out the door everymorning and people complain about the prices yet they continue to buy it so why would Starbucks out of the goodness of their hearts lower their prices? Believe me when I tell you that nobody is more concerned about fuel prices than us. Our ENTIRE livelyhood depends on the ability to keep an 18-wheeler loaded and rolling and mileage is going to skyrocket (the market is not great right now anyway) and buyers are not going to pay $4.00 a mile but they are fixin to have to. I am all for the government stepping in and saying enough is enough if we were to quit buying oil at these prices they would come down but so far I don't think the outcry is great enough Maybe when it hits $4.25 a gallon or more across the nation people will ban together and hit them back where they have been hitting us-in their pockets until then I don't see a windfall tax doing much of anything except causing them to keep the price increasing to keep those outrageous profit margins up!

C&K*s Mommie replied: Well said Abbie. Generally what I was thinking, but a far better explanation. The big oil companies can make as much money as they deem so, and they have so far.

But I in my limited understanding of this term (it is new to me, as it was for Holley) I do not understand this and how it could possibly backfire. My (limited) understanding is that the tax would mean a digging into their profits. With higher oil prices, totalling higher profit margins and thus higher taxes, how could that backfire against the windfall tax, and still increase their bottom line?? I am not trying to argue, but I am slightly confused.

punkeemunkee'smom replied:

I am sorry Nichole I was being flippant! I simply was meaning if the prices are not capped in some way- a higher tax-(the windfall tax) unless I have missed something-which is entirely possible as I had an extra kiddo here today - means they would be taxed on excessive profits. But to my thinking at this point if the government says they will be taxed at 10% for anything over $0.75 a gallon profit...
Their profit will then become $0.67.5 a gallon-If they want to get back to $0.75 a gallon again then all they do is up the prices again until what they are paying in windfall tax is just basically absorbed by us. Like I said I have not taken very much time to examine the news today-two 4 year olds don't leave much time for progressive thought-so I may be way off I was , again, saying something off the cuff

luvmykids replied: I agree that free enterprise basically guarantees that a company can make unlimited profits by right, but do think when it is a necessity there should be a cap or windfall tax. At some point I think it's not about turning a nice profit but pure greed, but I have to buy it. Really chaps me.

MamaJAM replied: I definately think a tax is justified. They know that gas is really a 'fact of life' in this day and age and are milking the general public for their own gain. Of course - they'll just keep upping the gas prices to cover their taxes - and we'll suffer even more.
I think a cap on gas prices would be better.....or to somehow force the companies to put the new taxes they would be paying back into relief for the consumer.

C&K*s Mommie replied: Okay I understand now, Abbie. Thanks! And I sympathize with you on having your mind elsewhere with two children in the house.

Monica, & Judy I understand your points too. Thanks for the clarifications everyone.

I would agree to a cap on the prices, there has to be a limit. But then again, as they say "the pig gets the slop, and the hog gets slau**tered" (not sure if I could use the unedited word with a disclaimer) Their day will come when it will backfire on them.

jcc64 replied:

If there was ever a situation that embodies this concept- it is this one. You all know how I feel on this subject- I've posted several links about the record profits posted by big oil this year- it's positively obscene. I know this sounds ridiculously delusional at this point in history, but I thought the gov't was supposed to represent the interests of all of its citizens- not just the ones that can buy friends in high places. And it's lovely to defend the theory of the free market economy, but we're not talking about tupperware- this is oil, the lynchpin of our society, and if it in fact winds up at $4/gallon- we're all (in the middle class and below, anyway) gonna be in serious trouble. Jobs will be lost, businesses will sink. At those prices,my monthly heating bills in the winter will top $700- and I keep my thermostat at 62 degrees! The economy will most definitely suffer- and personally, I'd rather the money come out of their disgustingly well padded pockets than ours.
For a little perspective on this, consider the following:
The now retired chairman and CEO of Exxon personally earned $686 million from 1993-2005. In his final year with the company, he made $400 million. In order to better understand just how much this is, he was making $144,573 A DAY! I'm sorry, I don't care how hard he worked, how much money he made the company- no one on this planet deserves or needs that kind of money. He couldn't possibly spend all of it, even if he wiped his behind with $100 bills every day for the rest of his life. When our brothers and sisters in New Orleans are still living in trailers, if they're lucky, and our farmers and truckers and everyone else can't pay their bills or go to the dr when they're sick, I'm sorry, I have a HUGE problem with that. And I can't understand why more people don't.
I'm certain this windfall tax wouldn't be happening if midterm elections weren't looming in the minds of many nervous Congressmen. But whatever the reason, I'm with you all the way, Ed! Can you believe it- we're on the same side?????? What's happening to you?

My2Beauties replied:
Again and I've said this before - are you sure you aren't 25 and born on October 11, 1980 and that we were seperated at birth? We have the same brain!

jcc64 replied: I only wish I was 25, and as cute as you are!

My2Beauties replied:
Thanks. But um....you are as cute as I am, I have seen pictures and you are a doll!

MyBrownEyedBoy replied:

I have said this to Aaron numerous times. And he shares the same opinion as I do. I for one am sick and tired of big business running the country. The government we elected has basically sat back and allowed the oil industry to wring us all dry. And now we're going to get hung out.

jcc64 replied:

Sing it!!!!!!!
Hey, btw, I totally love the pic in your siggy. Did you do that in Photoshop or something?

redchief replied: Jeanne, guess what? I think you should be sure you're sitting down for this one.

I completely and totally agree with you.

JAYMESMOM replied: I agree they should be taxed. Unfortunately for most of us we dont live in an area where we can choose to walk or ride a bike to work to save $. We don't have everything right at our fingertips and chose to drive for the leisure of it. We are forced to pay the gas prices because we need a job to support our family. But it is going to get to a point where we can't afford the gas, thus not being able to work, lose our jobs, and then what. We go on governement assistance that is not going to be there.

While the big companies and politicians sit high on the hog.


Unfortunately Starbucks cofee and gas are not comparable.

You don't NEED coffee (you may think you do but you dont to survive) where as the majority of people need gas to get to work. Or at least gas goes in the bus that they may take etc.

The same with heating a house. My gas bill was almost double this year from last. With one income we couldnt afford it so we are behind to the gas company. But my opinion unfortunately is OH WELL. They will get it when they get it. They can't get blood from a turnip. And as long as I send something every month they don't complain.

And yes it is sad when people are making millions a year for a job and doing nothing to help those that are living beyond poverty in America.

MyBrownEyedBoy replied:
Thank you, my friend who took the pictures also edited them and made some b&w and others she colored. I love this one, too. You can see his big brown eyes.

jcc64 replied: Can you ask her how she did that?

MyBrownEyedBoy replied: Sure, I'll try to remember to call her tonight. It may be tomorrow before I post about it. I'll title the post something like "color edits in photos"

redchief replied:
There's are programs that do that... Basically you take a color photo and it can strip out all but a color range(s) you specify, leaving some of the colors but grayscaling the rest. One of the graphic programs I used to have was able to do it, but I don't think anything I have on my machine right now can.

jcc64 replied: I have Photoshop, I guess I'll just try to mess around with it and see if I can do it. Love that look.