fxtrader07

Does Big Oil's Apathy Justify Proposals to Tax Windfall Profits?

big oil had zero incentive to explore for new oil until very recently because oil was absurdly cheap. the cure for high prices is high prices - not higher taxation of those who are bringing the stuff out of the ground and into the economy. the result will be that big oil will pump even less - look no further than russia where they are doing the opposite - slashing the excessively high tax rates becuase production is declining rapidly. Nor should you force oil companies to invest in alternative energy. I have high sympathy for subsidising research and development of alternative energy sources - but why should any particular company be forced to do it??
Once you start with that kind of 'windfall crap' you will never stop. It will dampen investment in many areas because companies will simply not take on risks only to get later excessively taxed once the money starts flowing. it's very similiar with mining.
but then again, govts are alsways very quick when it comes to collecting money on any grounds. but framing a well-thought energy policy and SPENDING something on it will surely come only very much later.
the price will be paid by the people and by the oil companies which already contribute a mammoth share of tax revenues. what about windfall taxes for farmers who get rich on the ethanol idiocy?