Senator Barack Obama (D-Ill.) on Friday announced an “Emergency Economic Plan” that would give families a stimulus check of $1,000 each, funded in part by what his presidential campaign calls “windfall profits from big oil.”
Details are in this six-page policy paper.
The first part of Obama’s plan is an emergency energy rebate ($500 to individual workers, $1,000 to families) as soon as this fall.
“This rebate will be enough to offset the increased cost of gas for a working family over the next 4 months,” Obama said. “Or, if you live in a state where it gets very cold in the winter, it will be enough to cover the entire increase in your heating bills. Or you could use the rebate for any of your other bills or even to pay down debt
Oil giant makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007.
“This rebate will be enough to offset the increased cost of gas for a working family over the next four months,” Obama said. “Or, if you live in a state where it gets very cold in the winter, it will be enough to cover the entire increase in your heating bills. Or you could use the rebate for any of your other bills or even to pay down debt
Separately, Obama’s plan includes a $50 billion stimulus package that his campaign claims would save more than 1 million jobs.
Among the top companies recently sold were Anheuser-Busch for $52 billion and Genentech for $43.7 billion. With the sale, all patents, revenue and many jobs go overseas.
Abu Dhabi has recently shown its fondness for iconic American real estate by purchasing the Chrysler and GM Buildings in the past months. Now, Abu Dhabi is showing interest in forming a joint venture with General Electric to become a top-shareholder and perhaps begin a takeover.
General Motors announced it will cut salaried positions by 15 percent, nearly 5,000 workers and eliminate health-care benefits for salaried retirees according to CNN Money.com
NAFTA and other free trade agreements encourages domestic companies to outsource jobs to Mexico and South American countries with substantially lower environmental and working standards.
American companies created 9,000 jobs in July after eliminating 77,000 jobs in June, 17,000 more losses than the forecasted 60,000 cuts, according to Bloomberg.com. The addition of 9,000 jobs caused the dollar to reach a one-month high against the euro.
Originally posted by BlueTriangle
One negative thing though...this does kind of strike me as "buying votes". It's basically Obama saying "Here's $1000. Oh by the way, I'm running for President...vote for me."
Originally posted by marg6043
Obama plan may sound good, but it will not work, because it's not taking care of the real issues facing this nation, outsourcing, the nation killing NAFTA and the sell out of our industries to foreigners that many happens to be from rich oil countries is what needs to be addressed.
Sorry Obama but that is not going to fix the nation's and its down fall economic problems.
]The future president of the U.S. will inherit the worst budget deficit ever recorded, a negative balance of $490 billion, $83 billion more than the forecasted $407 billion deficit for this current year
Generating fiscal revenues have not been on the agenda of the current administration. The trade deficit hit a staggering record of $268.7 billion throughout the first nine months of this year, while foreign debt held among Japan, China and the U.K. totaled $1,347.7 billion as of May 2008.
To offset declining production, Exxon Mobil stepped up its investment in new exploration and development. The company spent $7 billion looking for more oil, up 38 percent from the second quarter of 2007.
Originally posted by Andrew E. Wiggin
Is obama trying to get you to vote for him?
Yes- why the hell wouldn't he?
Promising a $1000 dollar stimulus check at the expense of the most corrupt and profitable business in this country is no different than McCain promising a $5,000 dollar tax CREDIT (not refund!) to "create" a UHC plan.
You offer things to buy votes.
Originally posted by Andrew E. Wiggin
Because if you didnt - then you'd be relying on people strictly to vote for you because they belong to your party.
And no doubt there will be renewed calls to punish energy companies with windfall profits taxes and special legislation that prohibits them from tax credits that others may take. The problematic truth is that these responses will always hurt more than help because they ignore basic economics. Businesses don't pay corporate taxes any more than a plot of land pays property taxes. Ultimately, people have to pay.
While they were recording record profits last year, they were also writing checks to Uncle Sam to the tune of $100.7 billion -- two and a half times what they made in net profit. In fact, previous Tax Foundation research found that from 1977 to 2004, federal and state governments extracted $397 billion by taxing the profits of the largest oil companies and an additional $1.1 trillion in taxes at the pump. In today's dollars, that's $2.2 trillion.
Over the last three years, Exxon Mobil has paid an average of $27 billion annually in taxes. That's $27,000,000,000 per year, a number so large it's hard to comprehend. Here's one way to put Exxon's taxes into perspective.
According to IRS data for 2004, the most recent year available:
Total number of tax returns: 130 million
Number of Tax Returns for the Bottom 50%: 65 million
Adjusted Gross Income for the Bottom 50%: $922 billion
Total Income Tax Paid by the Bottom 50%: $27.4 billion
Conclusion: In other words, just one corporation (Exxon Mobil) pays as much in taxes ($27 billion) annually as the entire bottom 50% of individual taxpayers, which is 65,000,000 people! Further, the tax rate for the bottom 50% is only 3% of adjusted gross income ($27.4 billion / $922 billion), and the tax rate for Exxon was 41% in 2006 ($67.4 billion in taxable income, $27.9 billion in taxes).
Oil is skyrocketing… and Chevron and Exxon should be making outrageous profit margins. So let's tax those "windfall" profits! But… hold on a minute…
From March 2007 to March 2008, Exxon's profit margin was just 10%. Meanwhile, its income tax rate was about 43%.
Compare this with Microsoft: Microsoft's profit margin was over 28%. And Microsoft's tax rate was under 30%.