Obama calls for $1,000 consumer energy rebates
Finding it tough to come up with the cash to keep your tank full? You are most definitely not alone. To offset the rising cost of gas in the country, Democratic Presidential candidate Barack Obama has called for a new $1,000 consumer energy rebate, which he says, "will be enough to offset the increased cost of gas for a working family over the next four months." From what we can gather, the actual rebate amount would be $500 for an individual or $1000 for a married couple.
Wondering where the money would come from to? According to the plan (.pdf link here), "The rebates would be fully paid for with five years of a windfall profits tax on record oil company profits." The report further says that Obama recognizes that the oil companies are being well managed, but that much of their record profits are coming solely due to the rising cost of oil. Similar windfall taxes are apparently being considered in the U.K.
[Source: Associated Press via Yahoo News]
Reader Comments (Page 1 of 2)
meme 4:20PM (8/01/2008)
I like.
A windfall profit tax on oil companies is basically a gas tax, just made more politically palatable. Gas taxes help the environment and promote the development of alternatives and the advancement of technology, but they're regressive; they hurt the poor the most. A flat rebate, however, is progressive, and should directly counter the gas price.
I hope that there's some money left over for the renewable energy incentives, however.
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axiom 6:22PM (8/01/2008)
"A windfall profit tax on oil companies is basically a gas tax, just made more politically palatable."
Wrong. It would be tax on a PERCENTAGE of net profits. Any amount the oil companies attempted to artificially raise prices by would be offset by a proportional increase in the amount paid into the windfall tax. A resulting investigation showing artificial price manipulation would also expose the oil companies to further regulation, in addition to criminal penalties, fines, and potentially being ordered to issue rebates to consumers (probably in the form of taxes on a greater proportion of profits) equal to the amount they jacked prices up.
tankd0g 12:17AM (8/02/2008)
Although he is full of shit, he's saying all the right things to get elected.
tankd0g 12:17AM (8/02/2008)
Investigation into price manipulation by oil companies...yeah I must have missed the part where Obama outlines a plan to phase shift America into another dimension.
Luke 4:29PM (8/01/2008)
Yet another attempt to buy votes.
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meme 5:26PM (8/01/2008)
Okay, let's weigh this against the alternative proposal, a gas tax holiday. Defend the alternative.
This is a far more sound proposal; it actually will help alternatives instead of hurting and won't defund our transportation system.
Luke 8:25PM (8/01/2008)
Your argument appears to be that two stupid ideas make a good one. Frankly, we could take away all the profits of all companies with higher profit margins than Exxon's and give it to us. Then you wouldn't have to pay for any of your gas.
Peter 7:15PM (8/01/2008)
Terrible Idea, subsidize wind, solar and storage, do something that will actually help people, a $1000 check will help in the short run ten times less than that amount investing in clean energy.
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floorman56 11:02AM (8/04/2008)
Terrible Idea, subsidize wind, solar and storage, do something that will actually help people
Can you tell me how this will make the price of gas go down?
I have been to a lot of wind farms ... I never saw a gas pump hooked to one
The problem is GAS!!!!! Do all the solar and wind you want but don't tell me this is going to reduce the cost of gas.
Amtoro 1:07PM (8/07/2008)
I could use those $1000 to upgrade my EV to better batteries.... or the government could use it to subsidize better energy storage solutions.
You have seen how the barrel of oil has gone down due to lower demand; the thing is, the lower demand won't last because there is always more vehicles on the roads. Electric vehicles, plug-in hybrids, LPG, NGV, bycicles, all that will help lower demand for oil and keep prices down. With lower fuel prices, food will not continue going up.
why not the LS2LS7? 5:07PM (8/01/2008)
Bread and circuses.
Please, lets stop this crap. Let's try to fix things instead of repeating the mistakes that got us here.
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retro77 5:11PM (8/01/2008)
He hasn't bribed me.
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Michael 5:19PM (8/01/2008)
Wow. I really can't stand this guy. He's all about short term happiness, and buying votes. I am very scared about the future of this country.
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meme 5:52PM (8/01/2008)
"He's all about short term happiness..."
Remind me again, which candidate had the $300 million "battery" cleantech plan and which candidate had the $300 billion cleantech plan?
"...and buying votes."
Remind me again, which candidate was it who was trying to lure voters with a "gas tax holiday" that would defund our transportation system?
Michael 11:16PM (8/01/2008)
Where did I say I was a supporter of /anyone/?
tankd0g 12:23AM (8/02/2008)
McCain is about long term misery.
Luke 4:56AM (8/02/2008)
"Remind me again, which candidate was it who was trying to lure voters with a "gas tax holiday" that would defund our transportation system?"
Again, two bad ideas don't make a good idea. The issue here is that Obama believes that for $1,000 you will agree to permanently had over an industry to him so that he can double their taxes. This is unlike the absurd idea of a temporary tax holiday, which would be over in the blink of an eye.
Basically what will happen is that these tiny oil companies (yes, Exxon is tiny by comparison to the nationally-owned companies. It only produces less than 5% of the world's oil) will move overseas. Exxon's profit margin is a little over 8%, whereas Toyota's is a little over 9%. So you tell me,.......how many companies are we going to need to replace the tax revenue of the private oil companies when they move to Canada, Mexico, or anywhere else? With a little paperwork and a few million dollars in moving expenses, they will be gone. No one can stop them, and the move will be permanent.
Economics 101. You've been skooled.
Paul 5:26PM (8/01/2008)
More socialist schemes from the Democrats. I'm sure Hugo Chavez is smiling.
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tankd0g 12:23AM (8/02/2008)
It was Bush that did this last IIRC. What did you do with your tax rebate for keeping your mouth shut about the huge losses in Iraq?
Mik_Cal 12:53AM (8/02/2008)
Actually socialism would be Nationalizing the oil companies....taxing them is good old capitalism...unless you believe that capitalism = no taxes...