You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

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

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU
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:
Printer Friendly | Permalink |  | Top
  -Why isn't anyone mention that domestic offshore drilling doesn't guarantee that oil stays in the US? zulchzulu  Aug-06-08 12:26 PM   #0 
  - Yes, I want them to mention that also  ellacott   Aug-06-08 12:32 PM   #1 
  - There's nothing like throwing the "socialist" tag back at a Repig  zulchzulu   Aug-06-08 12:36 PM   #3 
  - Very true  ellacott   Aug-06-08 12:39 PM   #4 
  - Yes, you're 100% correct... it would require some "socialist" measures to keep the oil in the US.  Puzzler   Aug-06-08 01:50 PM   #22 
  - i like! n/t  CitizenPatriot   Aug-06-08 10:49 PM   #30 
  - I don't know if the numbers are right but I read somewhere  Heather MC   Aug-06-08 12:42 PM   #6 
  - Windfall Profit Taxes were removed for one major reason: OIL WAS $10 a BARREL  yellowdogintexas   Aug-06-08 02:45 PM   #25 
  - good post. I hope Obama will give this air time soon  Whisp   Aug-06-08 12:35 PM   #2 
  - I think Kerry and Biden have both mentioned it - I wish Obama would emphasize it. nt  JoeIsOneOfUs   Aug-06-08 12:42 PM   #5 
  - The framing has to be very simple and volatile...  zulchzulu   Aug-06-08 12:48 PM   #9 
     - Giving a lease to a private company doesn't mean oil in the hands of Americans. nt  JoeIsOneOfUs   Aug-06-08 01:03 PM   #11 
        - Yes, that's the point to make  Canuckistanian   Aug-06-08 01:51 PM   #24 
  - If we are exporting it instead of using it domestically there are most likely two  yellowdogintexas   Aug-06-08 12:44 PM   #7 
  - I think it's weird that the Oil Major's pet political project has now become...  cottonseed   Aug-06-08 12:45 PM   #8 
  - The gimmick should be exposed completely - little oil, big risks, long timeline, sold on world mkt.  polichick   Aug-06-08 12:50 PM   #10 
  - I would hope Obama surrogates have this understood...  zulchzulu   Aug-06-08 01:45 PM   #20 
  - Congress should move to close that loophole  Nick at Noon   Aug-06-08 01:11 PM   #12 
  - Just nationalize the domestic oil industry now!  whistle   Aug-06-08 01:12 PM   #13 
  - Thank you! This is what I have been thinking for the past week.  Nikki Stone1   Aug-06-08 01:24 PM   #14 
  - Oh, and please vote this to greatest page if you can  Nikki Stone1   Aug-06-08 01:25 PM   #15 
  - OK it needs one more  Nikki Stone1   Aug-06-08 01:31 PM   #16 
  - "Drill here, drill now, ship it overseas" - McCain's new slogan!!  Major Hogwash   Aug-06-08 01:35 PM   #17 
  - Could you recommend the thread?  Nikki Stone1   Aug-06-08 01:42 PM   #18 
  - Oil is fungible. A barrel shipped to China is the same as a barrel shipped to Milwaukee.  Occam Bandage   Aug-06-08 01:44 PM   #19 
  - Lol...McCain doesn't give a shit where the oil goes.  Evoman   Aug-06-08 01:48 PM   #21 
  - Oil independence is a somewhat odd concept--it is more expensive  Kurt_and_Hunter   Aug-06-08 01:50 PM   #23 
  - I try to bring that fact up on every thread on this subject!  bullwinkle428   Aug-06-08 02:50 PM   #26 
  - An ad needs to be done that plays on that notion  zulchzulu   Aug-06-08 04:03 PM   #27 
  - K&R"US oil companies are shipping record amounts of gasoline and diesel fuel to other countries. "  DianaForRussFeingold   Aug-06-08 05:25 PM   #28 
     - Still the MSM remains silent. They are complicit in keeping this a secret n/t  zulchzulu   Aug-06-08 10:43 PM   #29 

Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC