How about a windfall profit tax

[BigDaddy44]

On Google.

Google's profit margins are 25%. The profit margin for the S&P energy sector is only about 10%. The reason the net profit numbers for the oil companies is so high is due to their size. From a profit margin perspective, their profit margins are actually not particularly large. And the capital expenditures they require to look for and drill for oil are massive.

An interesting article http://money.cnn.com/2008/05/06/news/economy/oil_profits_tax/index.htm?postversion=2008050612

[Narkos]

1. Those taxes will be passed on to the consumer.

Just get rid of their subsidies, and let the "free market" work its magic!

[Selatius]

2. You can't pass on an income tax to the consumer. Not possible without driving customers away.

Try it. Say you made 100 dollars last year, but Uncle Sam takes away one percent, so you end up with 99. Well, in order to make up for the lost dollar, you raise your prices up a little more, so you end up with 101 the next year. Well, Uncle Sam still takes away one percent, regardless of how much you charge customers. I do agree with you about yanking their tax credits, though. That needs to be done without question.

[Narkos]

6. You're probably right, but since when do oil companies care

about driving customers away?

[TahitiNut]

7. It amazes me when people claim a tax on PROFITS is passed on by price increases.

Stunning accounting illiteracy. I've heard some claim that an increased tax on profits leads to layoffs! (The reverse is actually more likely.)

[Hidey]

3. Well, then we'd have 14B for investment in alternative energy!

And all in just one quarter!

Just keep doing it till they get the message!

[ColbertWatcher]

4. Yes!

So far, the message they're getting isn't helping their customers.

[greenvpi]

5. Just tax both

I don't understand the problem.