How about Congress establishes the"Reasonable Deficits Board" and gets that to work first?
-- "Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits. The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.
The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding "a reasonable profit." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress."
Here's how the bill starts
: "To amend the Internal Revenue Code of 1986 to impose a windfall profit tax on oil and natural gas (and products thereof) and to allow an income tax credit for purchases of fuel-efficient passenger vehicles, and to allow grants for mass transit."
MP: Just wondering, now that natural gas prices have spiked so low (see chart above) that some producers aren't even covering their costs of production, shouldn't there be a "windfall losses subsidy" for the natural gas producers that are losing money as part of the "Gas Spike Act." That is, market prices "spike" in both directions, up and down, so shouldn't there be some provision for downward spikes?
HT: Bob Wright
According to the most recent rankings from YahooFinance!
, the average profit margin for the 215 different American industries is 7.8% for the most recent quarter, and the profit margin for the "Major Integrated Oil and Gas industry" (includes ExxonMobil, Shell, BP, etc.) is right about average at 7.9%, and it ranks #90 out of 215 industries. So if the profits of the major oil companies are "unreasonable," what about the other 89 industries that are even more profitable, like publishing (53% profit margin), silver (41%), gold (25%), cigarettes (22.5%), etc.?
HT: Morganovich (see comments)
Update from some responses to me on Twitter
"How about they get the "Reasonable Deficits Board" to work first?"
"I'll accept a "Reasonable Profits Board" when they accept a "Reasonable Income Board" for all public employees."