E.U. Rebukes Windfall Profit Tax on Big Oil: California Legislature Remains in Suspense
The California state legislature has once again shown itself to be to the left of Europe. Last Friday the International Herald Tribune (what, you DON’T read it?) reported, “European Union finance ministers on Friday rejected a proposal to impose a windfall profit tax on oil companies benefiting from record prices that are cutting consumers’ purchasing power.”
Now, the EU’s reasoning for rejecting the tax is a little twisted, but that’s to be expected.
Said one EU minister from the Netherlands, “We already tax oil. If you tax companies when they make high profits, what do you do when they make low profits? You would then be giving them a subsidy when the oil price is low.”
This is exactly the sort of “it’s-our-money-not-yours-we’re-just-letting-you-borrow-it” logic you’d expect from the EU. Regardless, they did the right thing albeit for the wrong reason.
It remains to be seen if the California legislature will follow suit.
On Sunday, Assemblyman Johan Klehs (D-San Leandro) attended a candidate forum where he promoted his windfall profit tax legislation that,… Read More