Monday, April 24, 2006

Monterey County Herald | 04/24/2006 | Tax sought on windfall oil profits

Monterey County Herald 04/24/2006 Tax sought on windfall oil profits:

"SACRAMENTO - As motorists grumble about gasoline costs hovering around $3 a gallon, a Democratic lawmaker is trying to slap a so-called windfall profits tax on oil companies.
Assemblyman Johan Klehs, D-San Leandro, has a bill that would levy a 2 percent surtax on oil company income of more than $10 million a year. It's scheduled to be taken up today by the Assembly Revenue and Taxation Committee, which Klehs chairs.

The tax would raise $120 million in the fiscal year that begins July 1 and larger amounts in subsequent years, according to estimates by the state Franchise Tax Board. The surtax would sunset in 2010 unless extended by lawmakers.
Windfall profits taxes have been proposed several times before, but Klehs' bill is written in a way that could at least get it to Gov. Arnold Schwarzenegger, who has opposed any attempt to raise taxes."

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