Windfall Profit tax

Discussion in 'Economy' started by Skull Pilot, Nov 14, 2008.

  1. Skull Pilot
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    Skull Pilot Platinum Member

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    We all know BHO does not like it when a company makes money at the expense of the people. He prposes a windfall tax on oil companies who post an 8-10% profit margin because he thinks they make too much money.

    What about other companies that post near 10% profit in an economic downturn; aren't these companies getting rich on the backs of the people as well? Shouldn't these greedy exploitative companies be subject to a wind fall tax? After all how dare they show a profit in the worst economy since the depression? How dare these companies NOT ask for government bail out money?

    Wal-Mart Flourishes as Economy Turns Sour - WSJ.com

    On Thursday, after a week of bad news from retailers such as Best Buy Co. and Starbucks Corp., Wal-Mart said earnings for the third quarter rose 9.8% while sales rose 7.5%. At stores open at least a year, sales rose 3%, twice as much as a year before, and far better than nearly every other U.S. retailer.



    Indeed, the downturn is increasing Wal-Mart's clout...

    Even with unemployment rising, Wal-Mart said that it had hired 33,000 new employees in the 12 months prior to October. Its U.S. work force now stands at 1.45 million, making it an economic driver for millions of other jobs dependent on Wal-Mart.


    It's obvious that Walmart is taking advantage of an economic crisis to boost its profits and Walmart has the absolute gall to hire people when unemployment is rising.

    This is obviously worthy of a windfall tax.
     
  2. editec
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    editec Mr. Forgot-it-All

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    I wasn't aware that Obama was calling for a windfall profits tax.

    Can you lead me to data that supports the original premise of your post?
     
  3. Skull Pilot
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    Skull Pilot Platinum Member

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    Bloomberg.com: News

    Obama says he would impose oil windfall profits tax | Reuters

    Barack Obama and Joe Biden: The Change We Need | Economy

    Yes BHO doesn't like "excessive profit" by oil companies even though the margin of profit is only 8-10%

    If oil companies can have "excessive profits" can't all companies have excessive profits as well?

    Surely Wal-Mart's boon in the hard economic times is uncalled for and there should be a windfall tax on Wal-Mart to fund a retail stimulus check similar to the $1000 energy stimulus BHO wants to tax oil companies to fund.
     
  4. xsited1
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    xsited1 Agent P

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    This is so silly. Bill O'Reilly, a major critic of oil profiteering, works for a company that regularly posts bigger profit margins than oil companies. The US already has one of the highest corporate tax rates, so we already have a windfall profits tax in place for all corporations. Now the Democrats want to divide corporations based on what they earn in the same way they divide people into neat little categories. Americans need to wake up.
     
  5. RetiredGySgt
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    RetiredGySgt Platinum Member

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    And you claim you knew what Obama stood for?
     
  6. editec
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    editec Mr. Forgot-it-All

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    Thank you Skull.

    Windfall profits taxes are bad idea in my opinion.

    Oil companies have to plan decades in advance to bring oil to market.

    They need to have cash on hand to make that happen.

    I'm guessing if the oil companies had their way, they'd elect for reasonable prices consistently over time. But sicne that isn't our world or thiers, they need to make money in good times to carry them thorough lean times

    Plus the oil companies, as I understand it, don't really control the price of oil world wide.
     
  7. NOBama
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    NOBama Senior Member

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    That would be impossible since Obama doesn’t even know what he stands for. I seem to remember the pundits reporting (not too long ago) that he had called his campaign advisors to instruct them to devise a new and improved economic plan to yak about on the campaign trail.

    That left me with the sense that Obama won’t really be running the country, rather the people he surrounds himself will be. He’ll just be a figurehead reporting those decisions after the fact. That’s probably not a bad thing in this case, given his overall lack of experience.
     
  8. Care4all
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    Care4all Warrior Princess Supporting Member

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    fyi!
    walmart net profit margin runs around 3.4%, last year it was running around 3.2%....they are NOT EVEN CLOSE to earning a 10% or above net profit margin....

    the 3 corporations that i worked for over the years had a goal of achieving anywhere from 4%-6% in profit margin, in the retail/whole sale shoe industry.

    Walmart earns less...3.4% because it is a 'discounter''....
     
  9. NOBama
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    NOBama Senior Member

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    Perpetual and aggressive expansion has kept Wal-Mart from reaching Net Profit margins of 10% or more, not discounting. For example, over 3 of the past 5 years their Net Income has been near or above 10%. If they would stop expanding and pay down their debt, I think it would be a good thing for everybody, especially the small town economies they continue to decimate.

    Wal-Mart financials
     
  10. Care4all
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    Care4all Warrior Princess Supporting Member

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    you have to have an additive product or a necessity/commodity or a monopoly or duopoly or oligopoly, in order to make over a 10% profit margin imho....other than an occaisional anomaly...(had a leather ballet slipper flat with a bow once, that was cheap, 19.99, became hotter than a fired pistol and this single ballet flat, (in multiple colors) on its own, made my profitability for an entire year, even though i had at least another 150 different styles of shoes that i had also bought and had in stock to sell...and didn't make my profitability on....this one item, the ballet flat, made my planned profit margin figures for me....a fluke, a FAD....where something is selling so quickly, where you get your money for it from the customers buying it, before your payment is even due to the vendor/the manufacturer who you bought it from yet)

    True capitalism with competition in the free market SHOULD keep profit margins at a reasonable level and not at windfall levels...in general...in my opinion.
     

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