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A massive oil company seems to be a congressional sport these days they're attempting target senator Barack Obama -- -- of those companies just today.
Earlier I asked his senior economic advisor -- taxing big oil though is the answer.
Well it's it's not the answer I don't think there is any single answer.
But to appoint a Senator Obama has made is that we need to relieve -- middle class squeeze the burden on the middle class -- higher food and energy prices.
And we also need to make sure that these enormous profits.
Are being channeled into.
An alternative investments in energy so that we're not gonna be in this position in the years to count.
Who are used to start tapping their profits to suit your -- Well it's a matter of sitting anyone's fans and they they.
There are big profits and more importantly remember.
There are big tax breaks special tax breaks that oil companies get that other kinds of firms -- That's an entirely legitimate thing for government to decide no.
These kinds of special tax -- shouldn't be going through one set of companies rather than -- and you raise a good point I think removing the eighteen billion dollars -- the subsidies and tax breaks and allowances for an industry that collectively made a hundred billion dollars isn't is is is wise.
I think what might cause all in corporate America some -- here.
Is that drawing the line on what is excess profits in one industry might be tomorrow another industry.
A -- them of their concerns that Barack Obama's after companies that make a lot of money.
Well it's -- he's certainly not after companies for making a lot of money.
The as you -- to elevate the situation of oil companies is.
Very unusual if not unique because of the nature of the I'll market the limited capacity to increase supply in the short term limited number of available sources.
And that leads of course to situations in which there are enormous profits not because -- company has made investments.
Has getting her a good return on that investment but simply because of what's going on in that market at that time -- you know I don't think people drive out of conclusions I think it's a valid point and I'm not here to wrap you -- the candidate I am saying though that.
As you know the industry itself as a percentage of -- revenues.
Actually makes below the average and it's a gargantuan -- when you look at it because of the gargantuan nature of the business.
And it is -- popping when you see it but I think people looking at a candidate espousing taxing.
Profits after taxes have been today.
It raises concerns that business -- the -- No I I I think you know -- Senator Obama has said many times -- we are all in this together.
And it is important to understand that this is one country that businesspeople.
Working people have to come together and figure out what is best for the country.
His position on the oil profits.
Think derives from the situation we've seen over the last few years.
And what you have had vastly increase profits which haven't been the result of new innovation are our new exploration it's just the runup -- prices.
That we need to make sure that those profits are not the result of -- now toppling not the result of these youthful market -- are you saying that -- -- are you saying that that the -- it was purely the result of their market situation on the market structure.
Where you don't it's not like another business where somebody else can get into the business tomorrow.
Produce widgets provide competition for those who have been making.
More than competitive profits that's that's just not an -- terrible but let's say you're right -- the bit that maybe there -- some sinister motives to what -- oil companies are doing.
Then would you solve them by taxing their profits.
If you think this negatively about them wouldn't it be in their interest sorry you're gonna tax on profits were gonna opt in all the more and -- the price mart and I've -- at this cycle.
I don't I don't think anybody is accusing them of anything sinister I mean there are there in this business to make money him and I never I never Barack Obama.
I'm not casting -- oil companies in anything but at least a suspicious like -- that's fine I mean that's what candidates on the stump Hillary Clinton did it and it's understandable but.
-- don't you think some responsibilities should be.
Would the senator with congress in general for -- -- So look at oil alternatives here yes -- alternatives light.
Nuclear like solar light wind but like more boy we'll hear something the Democrats have steadfastly refused to do.
Time and time again.
Well he doesn't.
Look whenever you're making a decision about any of these things are multiple factors including importantly the environment.
He is all with -- nail on the prospect.
Alternative energy investments.
That is obviously an important part of a long term solution.
But I don't think we can fool ourselves that there's going to be a quick fix either through domestic.
Senator McCain's gas -- the gas tax holiday for the summer.
This is something that we've neglected for too long.
And now we need to set ourselves as a nation.
Do insurance right idea but do you think -- -- a little bit of arrogance involved here and saying.
We don't like what you're doing in oil exclusively ExxonMobil is sonoco -- -- or any others we think you should be exploring all of this.
That would be like someone coming up to -- and saying you know -- we think you should be doing more medical report it.
That we just think that it's in society's best interest that you do more medical coverage and not you know business and political coverage it is a slippery slope is not well I don't I don't think -- -- because if you weren't doing as good a job as you're doing on on Fox News right now there'd be somebody else providing competition finally pretty easy.
For the network to go out and hire somebody else say there is a lot of competition going on and there is a great deal as you know.
In the owners -- but you're your your points are well taken and I don't want to belabor the point -- -- -- -- kind of come on -- belabor the point but he just never comes on.
But I do want to -- stimulus something that he addressed today -- that that we are in need of more stimulus here's a quick bite from when he mentioned earlier.
An immediate fifty billion dollars to help those who've been hit hardest by this economic downturn Americans who have lost their -- their homes are facing live in.
Call it -- -- -- -- -- All right -- edited out.
And then in your brilliant guy maybe your -- is better than mine.
But you can't do all of these stimulus plans and you can't do all of this.
Helping without going beyond just hiking taxes on the rich even allowing for getting out of Iraq on January 21 just can't do -- am I missing something.
Well no doubt that there -- two different points here one has stimulus which by.
Definition is -- a temporary effort because you're trying to.
Boost the economy not to provide sort of long term dependence of these kinds of revenues and he's directing that proposal as he said towards that.
But the hardest hit segments of our society as often as -- frankly which will be spending the money and helping keeping the economy from slipping further that's number one.
Number two on a longer term budget issues which -- which quite properly ask about.
It's it's not just a question.
The taxes on the upper income people going out it's not just a question.
How the drive down in Iraq although it certainly is that as well.
It's also a matter.
Cap and trade session -- system for emissions which will -- With our concept of -- which is a totally market based concept of auctioning all the permits.
We'll producer -- you're saying all I can be done without going beyond the rich and as a candidate indicated today paying their fair share even though that that bank and -- -- almost -- their income to the government seems like you you know there's more than -- -- -- -- All right I do want to raise what I have you with you.
The -- the appearance of hypocrisy out of the Obama campaign down.
I'm Jim Johnson who -- aside -- a leading this selection of a vice presidential running -- Four Barack Obama.
Was one of those who supposedly benefit is from Angelo Mozilo is countrywide favored loan program and other words the friends of -- And and I think that.
The appearance was one that's not -- -- impropriety.
But doesn't look on it do you think then for the candidates -- blast.
The companies that might -- he says fooled investors -- those signing loans to have -- operative.
Who benefited from those companies.
Well and it in the first place -- I think there's there's.
Wall Street Journal story itself.
Acknowledge they don't really know the factors that went into the specifics here and and I certainly doubt.
I think what's most important -- -- a possession of the Barack Obama has taken the positions he took two and three and four years ago and the positions he's taken today.
And only look at those positions we see that he was out front and trying to get a handle on predatory lending well before it began running for President Clinton was out in -- got -- -- I don't take any -- that -- -- -- I don't -- -- -- you on this point but if in -- Jim Johnson was one of these friends -- -- And got of a mortgage or -- loan more favorable than would be available to general countrywide customers.
Should he step down.
Well you just in out yet -- Eric your your credit hypotheticals which I'm.
They have no basis and the story has reported and so I'm certainly not going well you say and you had office are you saying the story's wrong that he didn't he was not one of these friends and and no out what I what I'm saying rally in -- is that.
Today has been the roll out senator Obama's economic tour.
I'm an economic advisor I've been dealing with the economy.
With -- for the past eighteen months.
-- continue to do that today and that's certainly been where my focus is.
All right Ed to Senator Obama anytime you wanna come on to talk about these this is -- love to have you appear to talk to others not to us we.
Hope that's not that person.
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