Free Markets, Free People

windfall tax


The latest from your central planning overlords

As bad as the GOP field is, it is nice, every now and then to be reminded of  what constitutes the alternative:

Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits.

The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.

The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding "a reasonable profit."

Good lord.  Remember, this guy was a presidential candidate on the other side of the political fence.

Kucinich said these tax revenues would be used to fund alternative transportation programs when oil-and-gas prices spike.

"Gas prices continue to rise, creating a hardship for the American people," he said. "At the same time, oil companies are making record profits gouging their customers. This bill would tax only the excess profits and create forward-thinking transportation alternatives."

Specifically, he said the money would be used to fund a tax credit on the purchase of fuel-efficient cars and set up a grant program for mass transit programs when oil-and-gas prices are high.

Yeah, because these guys are so good at picking winners and losers and directing markets, huh?

By the way:

[T]he Integrated Oil and Gas industry made an average profit of 6.2 cents per dollar of sales, which ranks #114 out of 215 industries by profit margin, and puts oil companies right in the middle of industries by profitability.

In fact, it is apparently the periodical publishing sector that the Kucinich cabal should be after – they’re obviously gouging their customers, making a windfall profit of 51.7% for heaven sake.  Down with Newsweek!  Down with TIME!  Down with Ladies Home Journal!

Question: if this were to, heaven forbid, pass, who would end up paying the tax?

Anyone?

The fact that this fool thinks this is a good idea and has managed to get 5 other crack-pots to sign on is simply another in a long line of signs of how poorly we are served by our political class.

But as one commenter to the piece said upon surveying this nonsense, perhaps there could be a silver lining:

This is great- now we need a "Reasonable Spending Board" to monitor our Congress.  We need a "Reasonable Ethics Board" to punish members of Congress who use their office to enrich themselves.  A "Reasonable Taxation Board" to prevent the government from taking too much of our money.

Etc.  Yeah, it’s a joke, but you get the point.  Supposedly all that was contained in the Constitution – but we’ve all seen how that’s worked, haven’t we?

~McQ

Twitter: @McQandO