Fat Profits of Oil Companies Get the Hill’s Attention

The New York Times reports today that following third quarter announcements of fat profits by Exxon Mobil, Royal Dutch Shell and BP, the "windfall" profits tax debate is heating up on the Hill.  The discussion in congress reminds some people of similar measures in the 1970s, and some of the voices in the tax debate may surprise you. 

Senator Bill Frist, the Republican leader, said yesterday that executives of major oil companies will be summoned to Capitol Hill to testify about high energy prices . . . "If there are those who abuse the free enterprise system to advantage themselves and their businesses at the expense of all Americans," he said, "they ought to be exposed, and they ought to be ashamed." 

Frist has suggested that Congress should pass a federal anti-price gouging bill.  Gouging Post

The sharp rise in profits for these oil giants was largely attributed to the disruptions caused by Katrina and Rita.  For more coverage click here.