Wednesday, May 16, 2007

Eight Democratic senators propose oil windfall tax

That's the Houston Chronicle headline from April 27.
Senator Amy Klobuchar (D-MN) said: "Oil companies have been ripping us off over and over and over again, and this is going to stop."

The legislation, proposed by Sen. Robert Casey, D-Pa., would impose a 50 percent tax on profits after oil prices rise above $50 a barrel. Here's some of the text:

"...(1) the amount equal to 50 percent of the windfall profit from all barrels of taxable crude oil removed from the property during each taxable year"; "(c) Adjusted Base Price Defined-
      `(1) IN GENERAL- For purposes of this chapter, the term `adjusted base price' means $50 for each barrel of taxable crude oil plus an amount equal to--
        `(A) such base price, multiplied by
        `(B) the inflation adjustment for the calendar year in which the taxable crude oil is removed from the property.
      The amount determined under the preceding sentence shall be rounded to the nearest cent...."

      I'll have more in the next post.