Question about the Windfall Profit Tax Act of about 1980

[texastoast]

What were the main details of that act? It seems like it applied to domestically-produced crude.

Is now the time to impose such a tax based on all the "record" profits we are hearing about the oil companies making? Seems like it would make sense to use such tax revenue to invest in long-term, visionary energy solutions.

What say ye?

[shraby]

1. I wonder about that tax...my folks have

and oil well that started up back then and there were all kinds of deductions out of their checks from the oil company. I personally think that a windfall profits tax was taken out of their check instead of the company paying it. They weren't able to find a lawyer who was capable of checking the situation.

[stopbush]

2. Started by Nixon. Do a search. There's plenty out there.

[Village Idiot]

3. Main Points:

Imposes a 50-percent excise tax on the windfall profits earned by major integrated U.S. oil companies on the sale of all barrels of crude oil derived from existing wells. For this purpose, windfall profits means the amount that a barrel of oil sold exceeds $40 per barrel.

Windfall profits would be exempted from the tax if they were used for investments in the exploration and development of new sources of oil and gas, for investments in the production of renewable fuels or to increase their domestic refinery capacity. Under the bill, any windfall profits taxes paid would be considered a cost of doing business and allowed as a deductible expense for purposes of determining a paying company’s income tax liability.

[texastoast]

4. Well, that answer is just pretty much

exactly what I needed. Thank you!