Douglas, Sanders agree that windfall profits tax on oil companies should be debated

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(Host) Governor Jim Douglas says the rising cost of energy is the biggest economic issue facing Vermont. He thinks Congress should consider imposing a windfall profits tax on the nation’s major oil companies.

Douglas says he’s disappointed that Senate  Republican leaders blocked a vote on and energy bill that included the tax.

VPR’s Bob Kinzel reports.

(Kinzel) It’s not often that Independent Senator Bernie Sanders and Republican Governor Jim Douglas agree on national tax policies. But that’s the case with this bill.

The legislation being filibustered by Senate Republicans imposes a windfall profits tax on the oil companies, it rescinds billions of dollars in tax breaks to these companies and it places new restrictions on the trading of energy futures by Wall Street hedge funds.

Senator Bernie Sanders is a strong supporter of the bill.

(Sanders) “It is literally beyond comprehension that they refused to even allow debate on the issue that is on everybody’s mind in America, and that’s the outrageous high price of oil and gas. And not only that, they blocked another bill, which would provide tax benefits for sustainable energy so that we can encourage individuals and companies to go forward in wind, solar, geothermal, biomass etc. It is, in fact, almost impossible to understand."

(Kinzel) Sanders says the anti-speculation provisions of the bill could have a big impact on lowering energy prices.

(Sanders) “You have oil company greed and then you have Wall Street greed combined. There are a number of energy economists who are suggesting that up to 25 to 50 percent of the cost of a barrel of oil today is not supply and demand. It is not the cost of production. It is not the decline in the dollar. All of those factors are important. But it has to do with speculation on the part of hedge funds and financial institutions.”

(Kinzel) Douglas says rising fuel prices are a major issue and he thinks Senate GOP leaders are making a mistake in blocking debate over this bill.

(Douglas) “I am disappointed. I think all these ideas have to be fully debated and the Congress given the opportunity to see what will make the biggest difference in terms of providing immediate relief and lower cost to our working families."

(Kinzel) Douglas says the energy situation is so serious that a windfall profits tax on the oil companies needs to be considered.

(Douglas) “I’m not in favor, generally, of raising taxes on anybody or anything. But we have to focus on lowering costs. So I think it’s important to get all the ideas on the table to have a complete debate about what will move us in that direction. And that includes this proposal along with all the others."

(Kinzel) Douglas says he supports a suspension of the federal gas tax for the summer to help lower prices. But he says he won’t back a suspension of the state gas tax because of concerns about the fiscal stability of Vermont’s Transportation Fund.

For VPR News, I’m Bob Kinzel in Montpelier

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