Gov. Newsom will call special legislative session to impose windfall tax on oil companies

[hookaleft]

"It's time to get serious, I'm sick of this," Newsom said on Friday. "This is one of the greatest fleecings for consumers in world history."

The governor has requested the Legislature approve a measure that would require oil companies to pay back excessive profits to consumers through a new tax. The Legislature finished policymaking for the year on Aug. 31 and can’t begin action on proposals until January, unless the governor calls the special legislative session.

Newsom said Friday he chose Dec. 5 because that is when the Legislature was already scheduled to reconvene briefly to swear-in new state lawmakers after the election. He said his office wants time to make sure the proposal is on solid, legal ground in anticipation of lawsuits from the oil industry.

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https://www.kcra.com/article/gov-newsom-to-call-special-legislative-session-to-impose-windfall-tax-on-oil-companies/41560952

[Bayard]

1. Admirable

But, these companies will probably just pass that cost onto consumers again. That's the problem. They have us over a barrel (so to speak), and pretty much do what they want.

What pisses me off quite hugely is that they are still getting government subsidies. It makes no sense, and that money could definitely be used elsewhere.

[usonian]

2. K&R for taking a stand, and at the very least, getting numbers out in the open.

Would be interesting if California Brainiacs can figure a way for it not to just get passed along.

Simpler than rocket science?

[NullTuples]

3. Tie the tax to their profits. There will only be one crossover point & the state decides where

[tirebiter]

4. The problem that needs to be solved is the California refineries

were used to turn out product for the world market when Russian supply was cut back. Then the price rose in California to a buck/gal more than the rest of the states. We’re all going to be paying those prices when the Saudis cut back in November and onwards. I’m fixing my bicycle

[Hekate]

5. YES! GO GAVIN!

Just sitting here in the dark during a planned outage that I forgot to put on the calendar…
Good night 💤

[MichMan]

6. What amount of profit is defined as a windfall?

[newdayneeded]

8. That's would be part of the debate,

but would be established. Nobody red or blue doesn't want oil companies to make a profit, but these excessive bullshit profits need to stop.

oil trading now a days around 80 a barrel, gas averaging $3.90 a gallon. a year ago oil was trading at the same barrel price and gas was a buck lower a gallon.

[leftstreet]

7. Wouldn't it be easier to just nationalize energy sector?

Not sure I trust politicians to determine how much is "too much" profit, who gets the excess and how it's distributed.

Take the profit out of it, problem solved

[Zeitghost]

9. How the cost of a tax

is distributed is directly linked the the relative price elasticity of the product being taxed. Being one of the most price inelastic products we have, any gas tax will be almost entirely passed on to the consumer.

This is a horrible idea and will make some of the most expensive gas in the country even more expensive.

[WarGamer]

10. Useless...

The Corporation can do 100 things to reduce "profits".

Pay more bonuses, buy more infrastructure, buy companies, buy back stock...