Diary

No More Windfall Profits Tax

Good on the President-elect for this decision:

President-elect Barack Obama is not planning to implement a windfall profit tax on oil companies because prices have dropped below $80 a barrel, an aide said on Tuesday.

“President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel,” an aide on Obama’s transition team said. “They are currently below that now and expected to stay below that.”

Oil prices have fallen from a record $147 a barrel in July to under $50 this week.

Of course, no matter what the price of oil, a windfall profits tax is a terrible idea so the President-elect should not have waited until the price of oil fell before making the decision to ditch the tax. Additionally, it would have been nice if the President-elect had taken a stance against the windfall profits tax irrespective of the price of oil during the campaign. But I suppose that was not possible; the “reality-based community” would have objected if Barack Obama was actually reality-based when it came to this issue.