RSS“Reasonable Profits Board” Unreasonable
CAGW | February 2, 2012
The Council for Citizens Against Government Waste (CCAGW) this month denounced a measure proposed by six House Democrats to create a federally-run board that would levy enormous tax rates on oil companies whenever gas prices jump. If the measure, H.R. 3784 (“The Gas Price Spike Act of 2012”), passes, it would “impose a windfall profits tax on oil and natural gas” whenever energy companies record “windfall profits,” defined as any profits above an amount to be determined by a “Reasonable Profits Board.” According to Rep. Dennis Kucinich (D-Ohio), one of the legislation’s six co-sponsors, the new revenue generated would fund “forward-thinking transportation alternatives.” CCAGW President Tom Schatz commented, “Gas prices, like all others, are determined by supply and demand. The idea that they can be lowered by imposing exorbitant, arbitrary taxes on the companies that provide consumers with gasoline and natural gas reveals an unflattering degree of economic ignorance among these members…Nor is it possible to define ‘reasonable’ profits in any objective manner. The notion that such a threshold should be decided by the political class is frightening, to say the least.” Read more about the unreasonable “Reasonable Profits Board.”
Contributor's website: http://cagw.org
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