WHEREAS gasoline prices are almost at record highs, and are expected to break new ground this summer,
WHEREAS the economy is just beginning to pull out of the recession.
WHEREAS international turmoil has driven up fears over the amount and cost of barrels of oil this summer.
WHEREAS government of the United States of America has full right to apply any tax on items it chooses, during periods of national emergencies, as it did during WWII,
SO BE IT RESOLVED, that as long as gasoline prices are over $3.00 a gallon, a provision will be placed in the IRS code that taxes on all capital gains emanating from profits gained through hedge funds or all parts of hedge funds earning their income off of oil, at a rate if 95%.
Synopsis: This bill takes out all incentive of artificially driving up the price of oil, by taxing the capital gains made from doing so at 95%. It does not affect the hedging by American businesses, who seek to stabilize their energy costs over time, and actually receive and use the products they buy. The escalation of the price of oil, costs America tremendous amounts of money. This bill seeks to recapture the portion based on speculation, using that amount to assist in the emergency funding of the extra expense that higher gasoline prices exert on the day to day running of our government. ….
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March 9, 2011 at 4:28 pm
Duffy
Is that 3.00 before taxes or after? What if the cost is over 3.00 in some areas but below in others?
Hedge funds are not the sum total of speculators. There are a great number of banks that speculate on oil.
Further, all you’re going to do is push those hedge funds offshore where you can’t touch them.
March 10, 2011 at 2:54 am
kavips
Good points.
On which level the tax begins, … doesn’t matter. The point is to make the running up of prices, unprofitable.
Banks speculate where ever there is money. Banks speculating in oil, use the same pre-existing hedge funds. They are purchasers of stock, just like you or I would be.
Lastly for this bill to work, it matters not where the hedge funds are located. We can only tax Americans who profit from hedge fund investment. If an American invests in an offshore fund,and that profit if not reported on his tax form, he lands in jail (if caught).
The problem is not with hedge funds per se. The problem is that people manipulate events, by dropping press releases, by saying inflammatory statements, causing panic in the markets, and only Americans really have the power to accomplish that.
I don’t think the Grand Cayman Islands could threaten to bomb Libya…. if they want to see the price of gas rise higher…..
March 10, 2011 at 3:07 pm
john kowalko
One simple answer to artificial inflation of gas prices and food prices.
Reimpose “position limits” on the commodities market that currently allows Wall street speculation to artificially drive up wheat and crude oil prices without regard to supply (currently more) and demand (stable). The current commission tasked with doing that (effective this past January) has been at impasse with one Democrat member refusing to sign off. he is retiring shortly and Pres. Obama must nominate someone who will reimpose these restriction to halt the unfettered speculation driven artificial inflation of gas prices. This was long a bi-partisan issue and the President cannot abdicate his responsibility to nominate and force confirmation of an individual willing to make this change. If he chooses to compromise a weaker, questionable choice under the guise of needing confirmation votes he will lose whatever remaining support I was willing to give him.
John Kowalko
March 12, 2011 at 10:47 am
john kowalko
If the President would release a significant amount from the strategic reserves now, although in no way justified by supply shortfalls or inordinate demand, he could undercut the futures speculators, scare the bejeebers out of them and maybe cause some of them to fail on margins. This could temporarily ease the crisis and send a much needed message to the greed feed on Wall St.
John Kowalko
March 12, 2011 at 10:26 pm
kavips
Yes, he could….
But my guess is that his chatter is a bluster meant to modify any future speculation…. Better if he puts it this way…
“As president of the United States, I have the right and privilege to release the Petroleum Reserves when I see fit… Our primary goal, upon it’s release, is to cost those speculators who are responsible for 60 cents of every gallon you now pay, a very pretty penny…..
We hope this will … 1) lower your prices, and … 2) teach them a lesson that this president and vice president, are not harbingers of an “oil” administration. Make no mistake about it: WE are a “people administration”…..”