I’m fairly dyscalculic and may be reading this wrong, but I think this Tax Prof post is (deliberately?) misleading.
[F]ederal and state taxes on gasoline production and imports have been climbing steadily since the late 1970s and now total roughly $58.4 billion. Due in part to substantial hikes in the federal gasoline excise tax in 1983, 1990, and 1993, annual tax revenues have continued to grow. Since 1977, governments collected more than $1.34 trillion, after adjusting for inflation, in gasoline tax revenuesâ€”more than twice the amount of domestic profits earned by major U.S. oil companies during the same period.
OK … they total more than twice the amount during that period. But I believe Democratic politicians are proposing a “windfall profits” tax on companies in the year 2005, not the last 28 years. As many have noticed, oil costs more in the year 2005 than it did before. Also in the year 2005, oil company profits are soaring to the tune of 65-75% over last year’s. Profits for just the third quarter at Exxon totaled $8.3 billion.