The alarming idea of a so-called “windfall profits” tax on oil companies is gaining steam, despite economic data that shows the negative impact of price controls and windfall profits taxes on average Americans and, thus, the economy. Common sense should tell us the same thing, but since that doesn’t seem to be happening, the oil and natural gas industry is fighting back with a Web site and ad campaign running in major magazines. What I like most about the campaign is that it soundly refutes the often used argument that somehow, mega-rich oil exectives are sitting in a penthouse thinking up new schemes from which they can profit from the pain of the average Joe and Jane. Below is a key piece of information from the campaign. Clearly, a windfall profits tax will hurt middle America. (emphasis is mine).
“This study disproves the popular misconception that ‘Big Oil’ is owned by a small group of industry insiders. In reality, across the oil and natural gas industry only 1.5 percent of shares of public companies are owned by company executives,” said study author Robert J. Shapiro, undersecretary of commerce for economic affairs under President Bill Clinton. “The data show that ownership of industry shares is broadly middle class, with the majority of industry shares held by institutional investors, often on behalf of millions of Americans through mutual funds, pension funds and individual retirement accounts.”
