August 1st, 2008
10:45 AM ET
13 years ago

Obama calls for windfall profits tax, 'emergency' energy rebate

[cnn-photo-caption image= caption="Obama pushed for his energy rebate plan Friday."]
(CNN) - Barack Obama said Friday that a windfall profits tax should be imposed on the oil industry to subsidize a $1,000 "emergency" rebate for consumers struggling with surging gas prices.

The rebates had already been announced as part of his tax relief proposal, but the presumptive Democratic presidential nominee said the release of a disappointing jobs report Friday called for the immediate adoption of the plan, which he said would provide a rebate that would “be enough to offset the increased cost of gas for a working family over the next four months."

Listen: Obama's economic advisors describe the plan on a campaign conference call

Obama and John McCain reacted to the latest unemployment numbers released Friday, which show the nation lost 51,000 jobs in June, by attacking each other’s proposed economic fixes.

“Today’s jobs report is an urgent reminder that we cannot afford four more years of the failed Bush economic policies, and that is what Senator McCain is offering,” said Obama in a statement, characterizing the plan as a give-away to corporations and oil companies.

The presumptive Republican nominee plugged his own jobs plan, and said Obama’s proposal represented a return to failed economic policies. "Unlike Senator Obama, I do not believe that raising taxes is the answer to our economic problems,” McCain said in a statement. “There is no surer way to force jobs overseas than to raise taxes on businesses. The American people cannot afford economic policies that will take us backward."

Filed under: Candidate Barack Obama
soundoff (202 Responses)
  1. MMN-Milwaukee WI

    Have you ever gone to a public library or happen to know where one is?
    If yes you’re a socialist.

    Some of you are down right ignorant. Even when Jesus was born his earthly parents had gone to be counted and pay taxes. Having said that I have to remind you the any government the world over has but one simple business and that is… collect taxes to allow it to provide services and protection to its citizens…take that away and there is no purpose of a government. Take your pick and whining is not an option.

    August 1, 2008 11:56 am at 11:56 am |
  2. Franky in washington

    I have a questions why on earth to people think that McCain ahd his supply side economics plan is a somehow a good diea and that they benefit the American people in any way well unless your already a millionare but then again if you are you dont need to make any more money hten you already do. McCain offers no real economic plan only suffering

    August 1, 2008 11:56 am at 11:56 am |
  3. Dot Livengood

    How can a man campaigning for President of this wonderful country we live in change a logo on his jet???

    Where is the flag that was on the tail of the beautiful jet? He says change-well we will get it but not the way we are supposed to. That logo is sad!!!

    A vote for this man-will sell each one to a place where we don't want to be. I have been a democrat dating back to my great, great grandparents-if they knew who is running for president now, they would stand up our of their graves and pray to Almighty God that this is not the man we want for our great country that others have sacrificed to keep us free and be the greatest country in the world.

    Thank you

    August 1, 2008 11:56 am at 11:56 am |
  4. Cosmo

    Yeah, Obama really stuck it to McCain, yeah! (sarcasm)

    I wonder what other industries would be punished for experiencing huge profits. I don't hear anyone calling for the iPhone windfall profits tax.

    Also don't hear anyone complaining about paying an iPhone either, but that could just be me. Funny how people just somehow find the money for things like that.

    But by all means, continue Obama to ensure that America's businesses are given less and less incentive to make money. I'm sure that'll make this economy go BOOM!

    August 1, 2008 11:56 am at 11:56 am |
  5. Steve

    what's the matter with all you Obamabots? Do you actually agree with his lame "emergency" rebate for energy bill? When McCain called on congress to suspend the 50 cents/gallon tax on gasoline that federal government takes to give consumers a break earlier this summer, Obama called it a "gimmick". So what's this "rebate", a permanent solution to the $4/gallon gasoline problem? You've got to be kidding me. The solution comes in DRILLING for more oil here and now, not in this BS rebate.

    August 1, 2008 11:57 am at 11:57 am |
  6. Terri

    At least Obama has some ideas I really feel bad for all the unemployed people who want a job (decent paying) to provide for themselves and their families

    The richer get richer

    Most businesses if they can get the same amont of production with less people who is to say they will hire new employees?

    NO MCBUSH please

    I would be scared to have to be out here again looking for a job.
    hopefully I can keep my job and continue to go to school and things will be better when I graduate.

    August 1, 2008 11:57 am at 11:57 am |
  7. norml

    i dont care what its called.stimulus,rebate,whatever.we need help.and obama is coming through for us,with REAL solutions.

    August 1, 2008 11:58 am at 11:58 am |
  8. Lost in CNN Moderation

    I love it when the same people who say Obama is a socialist (Jose', Greg in Pottstown, Griff, Mike Jones) cash their "social" security paychecks every month or when they hand their medicare card to the receptionist at the doctors office, or when they file for unemployment because their employer just layed them off. All so called "socialist" GOVERNMENT RUN programs.

    Maybe you'd prefer to allow big business to handle social security, medicare, and unemployment programs. Try allowing those programs to be run by Enron and Exxon Mobile. If you don't like those programs then write the government a letter and decline them so there's more for the rest of us.

    August 1, 2008 11:58 am at 11:58 am |
  9. john courtney

    for all those who think that people are not getting stepped by gigantic corporations and getting their jobs taken away because its more profitable to do it overseas, this is a union organizer telling you that i see it happening every day that i go to work and it saddens me that people aren't more receptive to the fact that this is happening. this is not not socialism, this is people being helped out when they are in dire need of it.

    August 1, 2008 11:59 am at 11:59 am |
  10. Joe Regis

    It is a puzzlement to me that Exxon Mobil can make $1,500 per second of PROFITS and the people get to see not a penny of that, on the other hand when these big businesses about to go under, the people have to come to the rescue.

    That is the policy that McCain want to continue to pursue folks. The American people must profit from the kind of profit, it makes perfect sense.

    Go Obama go.

    Obama 08/12.

    August 1, 2008 11:59 am at 11:59 am |
  11. D from OHIO


    August 1, 2008 11:59 am at 11:59 am |
  12. Nick

    Energy rebates or Gas tax holidays just give aways and not solutions. Will the candidates please stick to solutions. This is starting to sound like a bad car sales job.

    August 1, 2008 11:59 am at 11:59 am |
  13. Adam

    I dont see why everyone is screaming "Socialism". America has never been 100% capitalistic. It has always been a mix of both.

    Ya'll act like this tax will take away your pursuit of happiness (whatever that may be).

    August 1, 2008 12:01 pm at 12:01 pm |
  14. Conan

    So if I do real good at my job and get paid more your gonna take it because it's a "windfall"? That doesn't sound right.

    August 1, 2008 12:02 pm at 12:02 pm |
  15. Latinos for Obama

    McCain/Bush have been part of the problem and have not offered any real solutions....Oh wait, McCain has spent most of his time on a negative campaign this will fix the unemployment problem.

    August 1, 2008 12:02 pm at 12:02 pm |
  16. Peggy - TX

    $1000 amounts to about $20 week. $20 is significant and in fact will help offset the cost of rising gas prices. A few months ago, I was spending $32 a week on gas and now I spend $56, so $20 is about right.

    I like Obama's focus on moving to other engery sources and I like the intermediate fix of a rebate. It is simple and to the point.

    My vote goes to Obama.

    August 1, 2008 12:02 pm at 12:02 pm |
  17. B.Hawkins

    Greg Pottstown, Pa. August 1st, 2008 11:15 am ET

    A vote for Obama is a vote for the redistribution of wealth. What is the point of working hard Obama will make sure that you make the same amount of money no mater if you have a degree or not or a job or not. That is not what America is about.

    Exxon Mobile had profits of 11.68 billion dollars last QUARTER. John McCain wants to give them a 1.2 billion dollar tax break while 51,000 hard working Americans lost their job last Month. Is that what America is about?

    August 1, 2008 12:03 pm at 12:03 pm |
  18. Jude

    Why should we vote McCain:
    1. He's the oldest candidate for first term president.
    2. He wants to bomb Iran off the face of this planet.
    3. He has a real problem of controlling his temper.
    4. He knows more about the economy than his opponent.
    5. He cares more about the average american because he could relate to their hardships.
    6. He's plan of change is just like Bush's.
    7. He thinks everyone is "My Friend".


    August 1, 2008 12:03 pm at 12:03 pm |
  19. Billy Gibbons

    Another nail in the coffin for Barrack Obama.
    No sensible thinking person would think that such a scheme would help this country lower energy prices. Oil companies will obviously raise prices on gas to cover the losses. Companies HAVE TO MAKE PROFITS. I can't believe Obama does not understand that simple fact.

    August 1, 2008 12:04 pm at 12:04 pm |
  20. The Texan Cowboys

    Mad man the old man cannot even remembering things and did not know the difference between shiit and shunni, lol.. is this the kind of commander in chief the American people ought to install in the white house?? Wake up people, to the fact that four more years of McBush will throw our country in the toilet again again, no way Mr. mad man.. You are still on the same path with the corrupt Republicans, fear and smear. Not this time my friend, McBush.. MY Friends, My Friends, My Friends.. no way but Obama for president.

    August 1, 2008 12:05 pm at 12:05 pm |
  21. The Real Issue

    The Real Issue is the oil companies made record profits off the back of all Americans. This was not fair and it severely impacted the economy. The build-up of profits were made because oil executives know that the price will drop due to alternatives to using oil. While that is going very slow, these same executives want to use the profits for additional oil exploration which the Republican party wants. However, it's too late....The Republicans had 8 years and could not work this out. Americans do not allow them another year after January, 2009. Alternative sources will be developed and we will as a nation be better for it!!!!

    August 1, 2008 12:06 pm at 12:06 pm |
  22. VON BISMARK,Vienna.

    This is John McCain on offshore drilling: research,feasibility studies,drilling etc will have an effect on the gas price in a few months.

    This smacks of intellectual dishonesty!

    August 1, 2008 12:06 pm at 12:06 pm |
  23. C from Texas

    And who do you think is going to pay for this windfall profits tax? Prepare for gas to triple in price if this goes through. Also does this mean that if any company makes a large profit that they will have to pay too? Thought this was America where people were suppose to make money....The American Dream!!!!! First the oil companies then who's next? Microsoft?

    This is just another way for the Democrats to tax people to get more money, why doesn't Congress take a pay cut since they're doing such a lousy job?

    August 1, 2008 12:06 pm at 12:06 pm |
  24. Alonzo Jefferson

    Who is McSame??

    August 1, 2008 12:08 pm at 12:08 pm |
  25. tjp, valley forge, PA

    What's next? Nationalize the Oil companies? What about pharma? And then what? The grocery store chains. Socialist Obama is destined to lose in November. Many stupid schemes that have failed in the past when attempted by previous tax and spend liberals. And socialists around the globe.

    August 1, 2008 12:08 pm at 12:08 pm |
1 2 3 4 5 6 7 8 9