A local candidate for the senate (Dem) talks about high gas prices on his ad. He says he will work to repeal the tax cuts for "big oil". Isn't this hypocritical? Won't repealing those tax cuts drive the price of gas HIGHER?
by 
BigDaddyBS
ANSWERS: 4
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Yes, if the oil companies are going to try to hang on to their record 9-10 BILLION dollar a year profits. PROFITS I SAID. The problem here is that since these are public companies, they are required by law to put the value of their stock above any other priority, including the price of their product. If they lose their tax breaks, I think one of two things will happen. 1. Their profits will shrink, which actually wouldn't be too bad for anyone. It would just be 9 billion dollars a year that won't go in a bunch of rich guys' pockets. Downside of this is that their shareholders will be pissed. 2. Everything else stays the same (profits, stock price) and the price of gas skyrockets. Then, consumers will be pissed. Likely it will provoke research and movement toward alternative fuels, which would eventually hurt the company financially as well. Seems like a tradeoff for the corporations as a whole. The real bad guys here are the executives who are walking away from all of this with hundreds of millions of dollars of our money in their pockets when they retire.
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Absolutely true, if you look closely at a lot of democrat politicians, they are full of hypocricy.
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I agree completely with Penal Colony's answer. I just want to add that the $18 billion in revenues arising from the repeal of the tax credit is targetted to be used for research on other sources of energy. I think it was Penal Colony who also provided a very good explanation on another question on shareholder regulations regarding oil companies. http://money.cnn.com/2008/02/26/news/economy/oil_veto/index.htm The revenues from oil companies would be used to pay for tax incentives for wind, solar and other renewable energy sources, including for ethanol produced from feedstock other than corn, and tax breaks for energy-efficiency programs. In the very long run there may be some benefit to the consumer but not anytime soon. The President said he will veto the bill in it's current form because it singles out an industry for taxing that other industries don't have. Also because it will hurt the American consumer severely.
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absolutely true...they will just pass along the costs. most "big oil" are public companies own by millions of US. worldwide. most of the profits are reinvested into new drilling and projects. most big oils, own agricultural companies, solar and wind and hydro electric projects. energy is the name , energy is the game and they want a big piece of the big pie. energy companies are the solution not the problem..hopefully they will get better and more enviromentaly friendly. they have.. all of us have grown up learning to save the enviroment from childhood..who do you think works for big oil..us.
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