Thursday, December 04, 2008

Obama Drops Big Oil Tax as Prices Plunge

From Business

President-elect Barack Obama won't pursue a windfall-profit tax on oil companies because crude prices have dropped below $80 a barrel. The pledge to pursue taxes on Big Oil—a key constituency and benefactor of the Bush Administration—was a potent campaign issue for many left-leaning Obama supporters and a key point of populist rhetoric as gasoline prices surged above $4 per gallon this summer. But that was then. Oil has since sunk below $50 per barrel, and with the country facing a deep recession, the incoming Administration has put new taxes on the back burner.

The Obama camp won't discuss the issue directly, with an aide on the transition team acknowledging the adjustment on Dec. 3, but speaking only on the condition of anonymity. Some liberal publications have already begun criticizing Obama for false advertising during the campaign. On Dec. 2, Mother Jones posted an online blog entry: "Obama's First Policy Retreat?" And The Huffington Post ran "Mandate Watch: Obama Backs Off Promise to Pass Windfall Profits Tax on Big Oil,", arguing that Obama is giving the industry a free pass on profiteering.

Blog Archive