A Windfall Profit Tax Isn’t the Answer NO NEW TAXES

“I’m not sure I understand the argument for a windfall profits tax on energy companies. If you reduce profitability, you will discourage investment, which is the opposite of our objectives.” – Lawrence H. Summers, former US Secretary of the Treasury; former chairman, National Economic Council

“We ignore this issue entirely until there’s a big price spike. And then everybody runs around yelling about how outrageous this is, instead of actually having a serious policy discussion of what’s the right way to deal with this. … We’ve got to make longer-run plans and not just wait until the crisis is upon us. … A windfall tax isn’t likely to raise or lower gas prices, but it would be very difficult to actually implement.” – Severin Borenstein, director, University of California at Berkeley Energy Institute

“Do I have the new infrastructure fast enough before I retire the old infrastructure, and what happens if you’re in the middle? … The way we’re doing it now is you just let the fuel costs go up and then we leave poor people with no ability to get anywhere. And then [politicians] grandstand against the oil companies – that’s not a solution.” – Amy Myers Jaffe, former executive director, energy and sustainability, University of California at Davis

“The Legislature has put forward policy for the past 15 years focused entirely on reducing carbon emissions, to the neglect of reliability and prices.” – Shon Hiatt, associate professor of business, University of Southern California

"The only three purposes I see for a windfall profit tax is as transfer income, punishment (for oil companies) or political attention. What it does not do is reduce gasoline prices. If you tax the producers of gasoline that does not reduce the price of gasoline." – James Sweeney, professor of management science and engineering, Stanford University

Common Ground is part of a joint labor management committee between the State Building and Construction Trades Council of California and the Western State’s Petroleum Association.
[email protected]

Privacy Policy