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Reply #25: Windfall Profit Taxes were removed for one major reason: OIL WAS $10 a BARREL [View All]

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yellowdogintexas Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Aug-06-08 02:45 PM
Response to Reply #1
25. Windfall Profit Taxes were removed for one major reason: OIL WAS $10 a BARREL
in 1988. I know this because when we got married in 1983 it was $40 approx. That was a nice amount to make oil & gas exploration reasonably profitable in a strict income vs expenses kind of way. We got nice little checks every month on the wells my husband had developed for his clients as a geologist, and we had to fill out the little tax forms showing our shares of expenses on the wells and all to reduce the amount we actually claimed as income.

It started dropping gradually but at $20 it was still do-able and we still made money and he still had work.

At $12, he had to change careers and we no longer had side income from the residuals/overrides/working interests. The Wells were taken out of production, essentially

It actually bottomed out around $8 a barrel but for all those years of cheap fuel, the market was flooded with oil from everywhere and domestic oil production was a money pit.

So the Windfall Profit tax was removed to help domestic production, supposedly. It didn't.

The tax was not a tax on profit either. It was an excise tax, actually.
You can go out to read the long deal in Wiki which is here:

http://en.wikipedia.org/wiki/Windfall_profits_tax
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