Why not a windfall profits tax on gasoline?

[kentuck]

ON anything over 3.00 per gallon?

How much money could they raise to pay down the deficit?

[harun]

1. Just nationalise them.

[Spider Jerusalem]

3. And then what?

Nationalise the oil companies and...? The price of fuel would still ultimately be set by world market prices for oil. The US imports over half of all the oil it consumes.

[harun]

8. I don't buy oil I buy gas. And the profit incentive wouldn't be there

hence my gas would be cheaper and if there were profits they would go to the citizens.

Mind you I wouldn't waste my time trying to nationalize them. The effort would be better spent on better electric cars and moving to electrics. That is a solution that is doable.

[Spider Jerusalem]

9. What do you think gasoline is made from?

It wouldn't be any cheaper. Not unless you find a way to make America use no more oil than it consumes.

[Name removed]

10. Deleted message

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[randr]

6. This is what every nation not owned by the Military/Petro Industrial Complex has done

and it seems to have worked fine for them. At least the citizens of America would have an interest over their own resources.

[Shagbark Hickory]

2. Because then they'd have to charge even more to make the same amount of profits.

Just like the oil spill that we eventually all paid for.

[muriel_volestrangler]

4. Are you saying they are making over $3 profit per gallon?

Or are you asking for a sales tax on gasoline over $3 per gallon?

[obxhead]

5. Campaign donations are needed by all. nt

[Marblehead]

7. nationalize the oil companies

it is a matter of national security..

[MineralMan]

11. Uh, you're going to pay any tax levied on gasoline, you know.

Who did you think would pay that tax in the end?

[Liberal In Texas]

12. I'd rather see the subsidies ended. And I'd like to see the mega-oil companies

broken up to create some competition.

The oil companies are going to retaliate by raising prices no matter what happens as punishment for ending the gravy train.

[alc]

13. could raise $15 billion/year.

profit on $4 gas is 30-40 cents. the profit on the amount over $3 is only 8-10 cents. taxes are already 30-55 cents on that $4 depending on your state so the extra tax on the 8-10 cent profit is probably not a significant increase.

If your windfall profit tax takes the entire 10 cents it could raise about $15 billion a year. If the tax is 100% of profits, they can't make it back by increasing the price but my guess is they'd find something else to do if their gas profits are cut too much (e.g. use the crude for something else in the US or concentrate on foreign operations). If the tax is less than 100% of profits, the cost of gas will likely go up to try to recover some of it.