There are two issues with your assertion. First, oil companies enjoy a modest 10% or so profit margin. I use the word modest not to say that oil companies don't make a ton of money (they certainly do), but to point out that their profit is based on volume not price gouging. The notion of "windfall profit" taxes, if applied fairly and equitably across all industries would severely tie the hands of every American who is busting his/her tail to earn a living. Should we tell Hollywood actors that they can only make X dollars/movie? Should we tell Coke that you can only sell X cans of soda per year? Of course not.
Second, you obviously didn't take economics in school. When the demand curve for a product is highly inelastic (like it is for oil), increased prices due to tax increases are paid for by the buyer, not the seller. Had you read the first 10 pages of Econ 101, you would have learned about tax incidence...obviously you have not.
Okay Einstein, explain how during a time when US consumption of oil DROPPED nearly 5%, the oil company profits INCREASED to all-time quarterly records if their profit margin is steady? Its volume based according to you, so explain. When a commodity costs more, companies make more when they sell it, right? Isn't that an increase?
And on taxes, do oil companies pay sales taxes or excise taxes on raw crude? I don't think so, they only COLLECT taxes at the point of sale, hence, THE CONSUMER pays ALL THE TAX from pump sales, not the oil companies. In essence, the ONLY taxes oil companies pay themselves are PROFIT taxes (income) and that is on the money they made by selling their product.
If Exxon makes $11 billion a quarter and is taxed at 10% (made-up) their shareholders pay $1.1 billion in taxes themselves. If this rate was 25%, you can see the difference. How are they going to pass along this cost to the consumer when they don't control the pump price of gas? This type of increase is merely a REBATE to the government that provides protection so they can make any profits at all. And don't act like the US Navy isn't the petroleum protection fleet.
You are the one not understanding simple economics, not Danforth or myself, and you prove the point of this thread's title. No one has talked about placing a WPT across all industries because the rest of our industries don't make enormous profits merely from speculation and events driven by the idiotic Bush Administration (along with other global occurences) which HARM the well-being of the citizens its supposed to protect and help prosper.
No new refineries have been built in 30 years so ANY kink in supply lines leads to the IMMEDIATE enrichment of others not even affected by events! What happened to supply and demand? Doesn't SOMEONE want to make tons of money by increasing the domestic oil refining capacity? Why hasn't capitalism worked in this instance? Because it ISN'T capitalism, its a near-monopoly and idiots like you keep defending it against both common sense and civic duty.