- Record prices for gas have been accompanies by record profits for the oil companies, punishing the
little guy instead of billionaires.
- Rich oil executives are making millions in options and bonuses, even if their companies aren't
- Money brought in could be put into an energy trust fund or alternative fuel research; it also could be put
into other areas where we need funds such as defense, education,
social security, etc.
- It ensures there won't be price gouging since unreasonable profits are taken.
- It provides a disincentive to the use of oil as an energy source, which may be a good thing since there are
more environmentally-friendly sources, and you have less chance of problems such as the BP oil spill in 2010.
- Gas prices will likely increase since oil companies will factor the tax into their prices.
- Less potential for large profit means less incentive to invest in exploration, drilling, and refinery development;
thus, it will lead to supply problems and greater foreign oil dependence.
- Companies shouldn't be punished just because they are successful.
- Oil stocks, which are owned by many Americans in 401(k)'s and other critical investment portfolios, would likely
plunge in value.
- Since almost all companies have transportation-related costs or purchase items that have to be transported, the tax
would increase inflation, leading to higher prices on items unrelated to oil.
- Corporate profits of non-oil-related companies would tax a hit; thus, the decrease in corporate tax revenues
would offset the money brought in by oil taxes.