jjseth said:
Ask Sarah Palin about that and the Alaskan people. ;)
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That particular tax only works because you can write off state taxes when paying federal taxes.
Those oil companies aren't actually paying anymore in taxes then they normally would. It's just going to the people in Alaska.
Compare the oil companies profit margins vs the average companys and you'll see that they really aren't "raking in the cash" but actually performing fairly normally.
The problem with a windfall tax of any kind is that it limits the amount of profit one kind of company can make... making people less likely to invest there.
Why ingest in Oil if a law makes it so you can only make an 11% growth without it being reduced drastically afterwords, when most companies actually have a much higher output in general?
