How will an oil windfall tax lower prices for working families?

Did I miss something in Econ 101? Won't the companies just pass that tax onto the consumer? Doesn't Obama understand that a company NEVER pays a tax from its own profits?How will an oil windfall tax lower prices for working families?
Oil companies typically spend 100% of their cash flow on operations.... if you take away 25% of that then there's going to be 25% less money being spent on production in return less supply and higher pricesHow will an oil windfall tax lower prices for working families?
The tax would not directly lower prices. The tax revenue could be used to develop alternative fuel sources, which would ultimately lower costs.





The market controls prices, not costs. Costs come into play when supply decisions are made (to drill or not to drill) which then can affect prices. Costs go up, supply goes down, driving prices up, causing more supply and lower prices. It cycles.
As it stands right now, oil companies pay 3 times in taxes what they make in profit. And, as you pointed out, all taxes are passed through to the consumer as a cost of doing business. Furthermore, the lasttime we had a windfall profits tax was during Carter and it hurt us a lot more then it helped.





I do not think the windfall profits tax will help working families, only hurt.
No he doesn't. He just magically thinks the Oil Companies will eat the cost. Yah right.





BTW, Coca Cola, has a much higher profit than Exxon Mobile, why don't they get a windfall tax first? Or how about Microsoft, or Google? Where does it end?
another president did this his name was Jimmy Carter. funny thing is Obama is running the SAME exact lines that Carter did and doing the SAME things and the liberal media says that they are not the ';same'; LOL if you are a history buff this stuff has got to be hilarious
obama is pandering.if this were to happen where would all of that money go?do you really trust the fed.to spend wisely.tobacco money is already misappropriated.
Obama knows that the average american has either not taken Econ 101 or failed it.
NO, but it sounds good to people who want to punish the oild companies.!!