A group of eight “freshman” Democratic senators have introduced legislation that would impose a windfall profits tax on oil companies as well as revoking some government subsidies.
The legislation, proposed by Senator Robert Casey, D-Pa., would impose a 50 percent tax on profits after oil prices rise above $50 a barrel. It also repeals tax “loopholes and breaks” from legislation signed into law in 2005.
Oil company “profits are way up,” Casey said, citing Exxon Mobil recent announcement of first quarter profits of $9.28 billion. “Prices at the pump are going way up for families across America.”
Not surprisingly Big Oil disagrees. “It’s not the right thing for the economy, or to support a reliable, affordable supply of energy,” said Kenneth Cohen, Exxon Mobil’s vice president of public affairs.
“The oil and natural gas industry’s earnings are typically in line with other industries,” the spokesman for the American Petroleum Institute added with a big grin on his face, before heading off for a three hour lunch ….
Only joking about the lunch, it was two hours..