[SIZE=11pt]Thank goodness this bill did not pass.
[SIZE=11pt]The threat to our economy is energy prices but taxing energy producers is about the worst thing we could do.[SIZE=11pt] What signal does that send to anyone attempting to come up with a new way to deliver needed energy to this country.  Work hard and have the government step in and demand their share if you happen to come up with a workable plan.
[SIZE=11pt]This is the best example of socialism that the Democrats have made publicly known in awhile, not withstanding the national health care agenda.
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[SIZE=11pt]"The oil companies need to know that there is a limit on how much profit they can take in this economy," said Sen. Richard Durbin of Illinois, the Senate's No. 2 Democrat, warning that if energy prices are not reined in "we're going to find ourselves in a deep recession."
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[SIZE=11pt]A limit! What is that? How much is that?
[SIZE=11pt]The Lemonade Company
[SIZE=11pt]Lets make a quart of lemonade.  
[SIZE=11pt]It takes 7 lemons, cost $.70
[SIZE=11pt]4 cups of water cost $0.10
[SIZE=11pt]1 cup of sugar cost $0.25.
[SIZE=11pt]1 quart container with label, cost $0.05
[SIZE=11pt]Raw product $1.10 to make a quart.
[SIZE=11pt]Cost of squeezing lemons, pumping water, measuring the sugar, mixing the ingredients, filling the container, applying the label, delivering the lemonade to distribution center, mandatory safety inspections, insurance coverage and equipment maintenance and repairs, nutritional studies, etc. cost 1.09
[SIZE=11pt]Total cost to make one quart $2.19
[SIZE=11pt]+ 27% markup (Profit Margin= difference between cost of product and what product will sell for)
[SIZE=11pt]You sell this quart to the Liquids for Thirsty People Company for $2.78 each.
[SIZE=11pt]Profit $0.59 on each quart.
[SIZE=11pt]You sold 100 quarts in 2007. It cost you $219.00 to make it and you made after all expenses $59.00
[SIZE=11pt]You sold 1000 quarts in 2008. It cost you $2190.00 to make it and you made after all expenses $590.00.
[SIZE=11pt]You made $531 more this year than last year. You also spent 1971.00 more this year than last year.  
[SIZE=11pt]Windfall profits?  No, you just sold more.  The Thirsty People Company bought more from you. That’s what companies go in business to do
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[SIZE=11pt]The Senate proposal would impose a 25 percent tax on profits over what would be determined "reasonable" and would allow oil companies to avoid paying the tax if they invest the money in alternative energy projects or refinery expansion.
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[SIZE=11pt]The Democrats want to impose an additional 25% tax on your $590.00 that you made in 2008. Remember, part of your $2.19 operational expenses already included the taxes that the government collects. The additional cost to the Lemonade Company $147.50.
[SIZE=11pt]You still need to maintain that 27% margin to make it worth continuing to make lemonade. What do you do? How would you make up that $147.50 loss.
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Oh, that’s right, you could give that $147.50 to the Garlic Tea Company in the next town. They still haven’t been able to find a way to make garlic tea that anyone wants to buy because it doesn’t taste good.

[SIZE=11pt]Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are hurting from the high-energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem."
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[SIZE=11pt]Most Senate Republicans have a different approach to dealing with the growing energy crisis — pump more oil and gas.
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[SIZE=11pt]At least Senator McConnell gets it. I haven’t heard too many others stand up yet. Free Market works. It has always worked. Will they please just get government out of the way and let it work.
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[SIZE=11pt]Now lets get something done and start the drilling.  Just stopping another stupid bill will not reduce energy costs. More usable energy will reduce energy costs. Until we come up with a workable solution to replace oil, oil is what we already have. Go get it!
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[SIZE=11pt]Democrats' Oil Windfall Tax Plan Fails in Senate Vote
[SIZE=9pt]Tuesday, June 10, 2008
[SIZE=9pt]Fox News[SIZE=11pt]

Windfall Profit Tax.  What about the Windfall tax the Government has received on the increased price of gas?  Perhaps we should give the taxers a windfall profit tax.

Dick Durbin and Obama are two of the most liberal Senators in the country.  Given that all of IL except Chicago is fairly conservative, this amazes me (Durbin is from Central IL).  Both have some of the worst ideas ever.

Ultimately, spot market supply and demand will determine prices in commoditized markets such as oil. The only means of reducing oil prices is to enact structural changes that reduce the demand for oil while concurrently investing in additional supply. While alternative energy sources may possess long term promise, the degree of research and development as well as infrastructure required to support these new technologies ensures that widespread integration is decades away. It would be much more prudent for Congress to avoid meaningless witch hunts and hearings about “excess profits” and instead learn from their prior mistakes by crafting a meaningful energy policy for America.

That means Drill here and Drill now is the only immediate solution.  http://www.beyondthemargin.net/2008/06/do-speculators-cause-oil-price.html

I would like to know why the dems are telling oil companies they need to be looking into developing other forms of energy. I heard someone say,  I believe it was Pelosi, they need to be investing their profits into other sources of energy. If there is already a thread somewhere on this, please let me know.

What part of "Oil & Gas" company do they not understand? There are renewable energy companies everywhere now, that's an entirely different ball game as opposed to oil and gas. Does that statement sound ridiculous to any of you, or is it just me?
  
To me it's like telling GM or Ford to spend their profits developing a new walking shoe.

Missyb wrote:I would like to know why the dems are telling oil companies they need to be looking into developing other forms of energy. I heard someone say,  I believe it was Pelosi, they need to be investing their profits into other sources of energy. If there is already a thread somewhere on this, please let me know.

What part of "Oil & Gas" company do they not understand? There are renewable energy companies everywhere now, that's an entirely different ball game as opposed to oil and gas. Does that statement sound ridiculous to any of you, or is it just me?
  
To me it's like telling GM or Ford to spend their profits developing a new walking shoe.

The Oil Companies are actually diversifying themselves.  They are becoming energy companies, albeit only a small part of their business.  BP for one has invested a gazillion dollars in alternative energies.  It does seem like a strange thing but it is happening already and it's not because Congress has mandated it.  It is because the Oil Companies are in business to make money.

I know that many are doing that by choice and wisely so. I've just heard so much talk from dems saying the oil & gas companies "aren't doing enough" to find other energy sources. When was it ever their responsibility to find new sources of energy other than oil & gas?

Missyb wrote:I know that many are doing that by choice and wisely so. I've just heard so much talk from dems saying the oil & gas companies "aren't doing enough" to find other energy sources. When was it ever their responsibility to find new sources of energy other than oil & gas?

It never was just like it isn't a requirement for the oil companies to drill on their leased land where there is no product to harvest.  The Communist Party DNC majority in Congress is just looking to put the blame on someone else.

It costs multiple millions to drill new wells.  I just heard on the news today that all available rigs are in action in California as the few oil producing areas left in the state have people working to extract as much as possible.  It sure would make more sense to drill other areas as well creating many new jobs and generating income domestically.

http://www.beyondthemargin.net/2008/06/demand-for-drilling.html