Calif. Assembly Committee OKs Oil Tax Bill

The AP reports:

A bill that would slap a windfall profits tax on California oil producers was approved by a state Assembly committee as gasoline prices surged past $3 a gallon.

The bill debated Monday would levy a 2 percent tax on oil company income of more than $10 million and use the revenue to help low- and moderate-income senior citizens pay for prescription drugs.

It was approved by the Revenue and Taxation Committee, 4-3. The vote sent the bill to the Appropriations Committee, the last stop before the full Assembly.

The bill's sponsor, Assemblyman Johan Klehs, a Democrat, accused oil companies of taking advantage of the Gulf Coast devastation caused last year by hurricanes Katrina and Rita.

"The only thing I can think of why prices are going up is pure and simple greed," he said. "The way oil companies can avoid paying this tax is reducing the price of gas at the pump."

Johan Klehs hasn't heard of supply and demand.It might help to build a few more oil refineries in California but the state doesn't want to do that.Johan Klehs could vote to cut or eliminate the California state gas tax at the pump.He doesn't want to do that.You'll notice Klehs want higher prices so "favored" groups like seniors can get some more relief.If you aren't in Klehs' favored groups you are non-worthy.