Obama Drops Windfall Profits Tax for Oil and Gas Industry

President-elect Barack Obama has removed any reference of his promise to implement a windfall profits tax on the oil and gas industry from the Obama-Biden Transition Team website, www.change.gov.

During the course of the 2008 presidential election, the Obama campaign called for a windfall profits tax on the oil industry as a means of subsidizing a $1,000 "emergency" rebate for consumers struggling with surging gas prices. However www.change.gov, which houses the Obama-Biden transition agenda, was recently cleansed of any mention of such a tax.

The promise was displayed prominently at the top of the "economy" section of Obama's campaign website. That same information was transferred to Obama's transition website, www.change.gov, when it was launched on Thursday, November 6th. However, the language regarding the windfall profits tax was removed on Saturday, November 8th in an unceremonious and abrupt manner. (pre-change, http://www.asbl.com/documents/Economy_Change.pdf ; post-change, http://change.gov/agenda/economy_agenda/ )

While on the campaign trail, Obama made provocative statements regarding the cost of energy and its respective negative impact on American families. On May 6, 2008, Obama stated, "It isn't right that oil companies are making record profits at a time when ordinary Americans are going into debt trying to pay rising energy costs. That's why we'll put a windfall profits tax on oil companies and use it to help Indiana families pay their heating and cooling bills and reduce energy costs."

With the election behind him, President-elect Obama has failed to justify the removal of the windfall profits tax from his tax plan. The subtle and unexplained elimination of this issue from the Obama-Biden agenda should concern Americans from every background. The American Small Business League (ASBL) questions whether the sudden elimination of this issue is a further indication that large corporations are already demonstrating their ability to influence the Obama administration.

This is not the only campaign promise the Obama-Biden Transition Team has removed from change.gov; I believe that President-elect Obama owes the American people an explanation as to why these campaign promises have been pulled from his agenda. With that in mind, someone from the mainstream media needs to ask President-elect Obama why these policies have been dropped.

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Comments

[DuganS1]

Why wasn't there a windfall profits tax on the financial companies over the last several years before the bust? Or a windfall profits tax for the healthcare companies? Or for the technology companies like Microsoft and Intel that make a fortune? Or how about the retail stores that make a bundle- Walmart, Target, JCPenney, Nordstrom, Tiffany's, etc? Why not excess profits tax on the home building companies during the home construction boom? How about the mining companies that made a pile of cash in the last several years? Or the heavy machinery companies like Caterpillar, Terex, and Deere? Why not just put in a windfall profits tax on every business when they're doing really well?

[kae]

http://onlinejournal.com/artman/publish/printer_3406.shtml

Bush/McCain's gas price scam is an Enron rerun
By Harvey Wasserman
Online Journal Guest Writer

-----------------------------------------
The Federal Trade Commission is the nation's consumer protection agency. The FTC's Bureau of Consumer Protection works For The Consumer to prevent fraud, deception, and unfair business practices in the marketplace. The Bureau:

* Enhances consumer confidence by enforcing federal laws that protect consumers
* Empowers consumers with free information to help them exercise their rights and spot and avoid fraud and deception
* Wants to hear from consumers who want to get information or file a complaint about fraud or identity theft
http://www.ftc.gov/bcp/index.shtml

[kae]

If you need me to be an optimist - maybe we're just waiting for Obama's FTC-crew to take charge? Please remember though, for many Americans that live paycheck to paycheck---$75+ for a tank of gas was kinda robbery.

[wendynyc]

We need to raise the tax on oil consumption - and use the money raised to fund alternate sources of energy for our autos and other energy needs.

[Badbone]

I can't believe I saw this on HuffPo. Questioning His Holiness?

Aside from that, the author does make a good point. What kind of presidency are we going to have if every time the president breaks a promise, a million people rush to excuse it?

That was precisely the problem with the press and the Bush administration. They didn't exercise even a little critical thinking, never judged him, never asked the hard questions. And look what it got us.

Is America a constituency, or a fan club?

[Sumocat]

A tax on windfall profits is a lastline defense, not a frontline tactic. Remember, those record-setting profits all occurred under the oil-friendly Bush administration amid record-setting gas and oil prices. Those conditions no longer exist. Even without Obama's still planned rollback of oil subsidies and "use it or lose it" policy on oil field leases, I think it's premature to assume there will be a windfall to tax.

[MinniePearlJam]

So, let's take a look at all this CHANGE going on. The Bush tax cuts WILL NOT be repealed. There WILL NOT be any tax increase on people earning over $250,000 per year. The cabinet WILL be made up of ex-Clinton flunkies. The transition team IS made up of lobbyists. Robert Gates WILL continue on as Secretary of Defense. Don't-Ask-Don't-Tell WILL NOT be repealed. Troops WILL NOT be home in 16 months. There WILL NOT be a windfalls profit tax on oil companies. OH by the way, the CEO of Exxon just got a 10% pay increase this morning.

How long do you think it will take the Left to figure out that they've been had?

[Sumocat]

A CEO pay increase cuts into the bottom line, decreasing profit. In other words, it's a step toward trimming their profit to bring it below the "windfall" mark (where ever that is). I suspect they'll continue by investing money in other companies, like those owned by major shareholders. Avoiding a tax on windfall profits is as easy as spending money.

[jpditri]

Man, no kidding.

It's almost like he isn't President yet, or the tanking economy is commanding his attention.

[follyeoa]

I think the biggest problem with windfall taxes is determining what constitutes a windfall. We often see astounding dollar figures in the oil and gas industry profit numbers, but if this sum represents a small percentage of their investment then there is no true windfall.

[ImpressedByHonesty]

And Campbell Brown is worried about some silly statement made during the campaign.

[topgunna]

It would seem that in order to impose a tax on windfall profits, that windfall profits must exist.

[ORSunshine]

I agree with fearuncertaintydoubt, with oil in the "tank" there's not a lot of basis to impose the tax... I am confident that if the oil companies again begin making ridiculous profits that the Dems in congress will pass a windfall profits tax and that Obama will sign it.

[fearuncertaintydoubt]

Gas is less than $2 a gallon. Oil is under $50/barrel and still declining. The opportunity to implement the windfall taxes is rapidly receding and will probably be gone by the time Obama has a chance to do so.

[Parducci]

As you point out, this is just one more in a string of campaign promises that President-Elect Obama has broken. Is it too early to talk about impeachment?

[Zeje]

Obama will be a one-term president. He won't keep any of his promises.

[proudem]

Can we at least give him a chance before we judge?