Good News For Oil Companies: No Windfall Profits Tax

There’s an upside to not having windfall profits: You can’t get slapped with a windfall profits tax. Now that oil is trading below $50, Barack Obama has apparently abondoned such a plan, an aide tells Reuters: “President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel… They are currently below that now and expected to stay below that.”

We’re curious how he came up with the $80 number in the first place as a level at which point energy prices were deemed excessive.

 

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