Obama ad: “Pocket”
posted at 9:10 am on August 4, 2008 by Ed Morrissey
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Barack Obama has a new ad out, continuing the negative campaigning he once eschewed. Obama now says that John McCain is in the pocket of the oil companies by refusing to impose a windfall-profits tax while taking $2 million in contributions from the industry. The ad never does mention Obama’s six-figure take from the same industry, however:
Every time you fill your tank, the oil companies fill their pockets. Now Big Oil’s filling John McCain’s campaign with 2 million dollars in contributions. Because instead of taxing their windfall profits to help drivers, McCain wants to give them another 4 billion in tax breaks.
After one president in the pocket of big oil… We can’t afford another.
Barack Obama… A windfall profits tax on big oil to give families a thousand dollar rebate. A president who’ll stand up for you.
Obama’s campaign stumbles on a couple of points. First, “Big Oil” doesn’t contribute to John McCain or to Barack Obama. As Factcheck tried explaining to Team Obama earlier, corporations cannot make campaign contributions. If Obama’s complaining about oil industry figures contributing to McCain, then the ad is hypocritical, since Obama has oil executives working as bundlers for his own campaign, and has received hundreds of thousands of dollars from the same industry.
As far as the windfall-profits tax plan Obama favors, the Jimmy Carter policy failed miserably when first tried — and as the Wall Street Journal asks, what makes a “windfall” anyway?
Mr. Obama didn’t bother to define “reasonable,” and neither did Dick Durbin, the second-ranking Senate Democrat, when he recently declared that “The oil companies need to know that there is a limit on how much profit they can take in this economy.” Really? This extraordinary redefinition of free-market success could use some parsing.
Take Exxon Mobil, which on Thursday reported the highest quarterly profit ever and is the main target of any “windfall” tax surcharge. Yet if its profits are at record highs, its tax bills are already at record highs too. Between 2003 and 2007, Exxon paid $64.7 billion in U.S. taxes, exceeding its after-tax U.S. earnings by more than $19 billion. That sounds like a government windfall to us, but perhaps we’re missing some Obama-Durbin business subtlety.
Maybe they have in mind profit margins as a percentage of sales. Yet by that standard Exxon’s profits don’t seem so large. Exxon’s profit margin stood at 10% for 2007, which is hardly out of line with the oil and gas industry average of 8.3%, or the 8.9% for U.S. manufacturing (excluding the sputtering auto makers).
If that’s what constitutes windfall profits, most of corporate America would qualify. Take aerospace or machinery — both 8.2% in 2007. Chemicals had an average margin of 12.7%. Computers: 13.7%. Electronics and appliances: 14.5%. Pharmaceuticals (18.4%) and beverages and tobacco (19.1%) round out the Census Bureau’s industry rankings. The latter two double the returns of Big Oil, though of course government has already became a tacit shareholder in Big Tobacco through the various legal settlements that guarantee a revenue stream for years to come.
When Obama becomes President, the federal government will determine how much profit any business is allowed to make. Washington will set arbitrary levels for federal intervention and confiscation, and they will strip shareholders of value in order to redistribute the money to pet constituencies. This isn’t taxation at all, but penalizing success, even the moderate success as shown by the actual profit margin in the oil industry.
It’s robbery by government whim, and even if it hadn’t already proven itself as a complete failure in the 1970s and 1980s, it would still be wrong.
Obama’s ad misses the mark in another crucial way. Seventy percent of Americans believe that high gas prices result from a supply crisis, one that can be resolved by opening up American resources and creating American jobs. The “Big Oil” conspiracy theories don’t work any more. The longer Obama pushes them as a campaign theme, the more marginalized he will become on the biggest domestic issue this year, and perhaps in the last decade. He couldn’t possibly make himself more irrelevant than by running this ad.
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Socialist.
I think I know who is VP is going to be…
Jaibones on August 4, 2008 at 9:16 AM
Right! And this is why the Democratically-run Congress just up and adjourned for the summer on Friday without so much as even trying to solve the current energy crisis, not to mention won’t do anything about it after they convene again in the fall, because they look on the current high gas prices as being good for them. Never mind being bad for the rest of the country!
What the hell does B.O. think, that none of us outside his little bubble don’t watch the news and see stuff like this happening? The man is an idiot!
pilamaye on August 4, 2008 at 9:16 AM
Obama shows McCain with Bush on that ad:
Here ’s what Bush said 8 years ago, while accepting the nomination:
I believe the presidency, the final point of decision in the American government, was made for great purposes. It is the office of Lincoln’s conscience, of Teddy Roosevelt’s energy, of Harry Truman’s integrity and Ronald Reagan’s optimism.
For me, gaining this office is not the ambition of a lifetime, but it is the opportunity of a lifetime, and I will make the most of it.
I believe great decision are made with care, made with conviction, not made with polls.
I do not need to take your pulse before I know my own mind.
I do not reinvent myself at every turn. I am not running in borrowed clothes.
When I act, you will know my reasons. And when I speak, you will know my heart.
I believe in tolerance, not in spite of my faith, but because of it.
I believe in a God who calls us not to judge our neighbors but to love them.
I believe in grace because I’ve seen it, and peace because I’ve felt it, and forgiveness because I’ve needed it.
I believe true leadership is a process of addition, not an act of division.
I will not attack a part of this country because I want to lead the whole of it.
McCain should be proud to have Bush linked with him.
Anita on August 4, 2008 at 9:17 AM
Don’t just hope for more oil - vote for it. McCain ‘08.
.
subbottomfeeder on August 4, 2008 at 9:19 AM
From Wiki. So they are a HUGE company, making a 10% profit. And I should fall over in shock at the dollar signs…why?
I’m so very tired of the reflexively anti-capitalist left.
MamaAJ on August 4, 2008 at 9:25 AM
This can’t be. We all know that McAmnesty is the one with all the negative ads, not Obama. And while McSame is in bed with big oil, I’ve seen proof that he’s for the windfall-profits tax. Not against it. Just the other day, someone here posted the video that shows Bush3 arguing for the windfall profits tax./
Ugh. What a way to start the monday.
wise_man on August 4, 2008 at 9:26 AM
Apple must have a pretty healthy profit margin these days, so obviously we should tax them to hell so that their products will become cheaper so that Americans can afford them.
What? The products wouldn’t become cheaper, but more expensive? Hmmmm. Short logic thinking doesn’t work, you say?
Seixon on August 4, 2008 at 9:29 AM
Pathetic, uber-spinning schlockmeister. “Ich bin ein Drekhauptkind!”
And this will do nothing to dissuade his worshipers.
rockbend on August 4, 2008 at 9:30 AM
Stupidly, McCain has said in the past that he would be open to a windfall tax. He should recant that unequivocally if he hasn’t already. The GOP should make an ad against the windfall tax coupling Obama with Carter and Chavez.
CP on August 4, 2008 at 9:31 AM
Windfall Profits Tax…
‘Cause it worked so well the first time.
Jimmy Carter II
Barack Hussein Obama
john1schn on August 4, 2008 at 9:32 AM
How much does “Big Law” rake in every year? You know, the largest contributors to the Democrat Party.
Parasites from “Big Law” game the system to leech off productive Americans.
Barack Obama knows nothing about health care, but he does know a lot about the legal system. Does he think it’s right that arguably the most lucrative industry in this country, is the legal system? Was that the intent of those who founded the legal profession?
Oil runs our cars and heats our homes. Lawyers just fleece people and each American family pays thousands of dollars a year to keep this parasitic “industry” in luxury.
McCain should attack “Big Law” in response.
NoDonkey on August 4, 2008 at 9:34 AM
Post image is too big.
MadisonConservative on August 4, 2008 at 9:37 AM
Ed,
The front page photo busts the border (in IE, anyway).
Karl on August 4, 2008 at 9:38 AM
My FTP sent the wrong version of the pic; I’ve fixed it now.
Ed Morrissey on August 4, 2008 at 9:39 AM
I really get tired of people using numbers out of context. People throw around the Billions spent in Iraq as if it is breaking this country, but fail to mention the Trillions we spend each year on social programs and other crap.
The first thing I think, when I hear something like ‘Exxon made a profit of $xx Billions.’ is “Is that a lot?” and what the profit is in relation to total expenditures etc…
If Obama and the rest of the socialist pig democrats set the precedent of ‘windfall profits’ at a profit margin of 8% or 10%, then the sky is the limit.
They, as usual, are playing on peoples feelings and anger at spending $100 to fill up the family truckster by taking revenge on the oil companies and stealing their profit.
Another thing they don’t mention, is that they can only do this with American oil Companies. Comrade Chavez’ Citgo will still be able to make ‘Windfall Profits’.
cntrlfrk on August 4, 2008 at 9:40 AM
It is imperative that Obama, Pelosi and Reid continue to be taken out behind the woodshed on this issue until either they get the message or the paddle is broken.
The American public is speaking but they are hiding in soundproof rooms. Perhaps some recall petitions would improve their hearing?
Yoop on August 4, 2008 at 9:42 AM
Keep talking Barry. You’re doing a great job.
rockhauler on August 4, 2008 at 9:43 AM
The moo-saih’s Marxist tendency is strong, government should take over everything, according to the ONE. And then we can have the grand and glorious Communism, with lollipops on every tree just for the taking.
tarpon on August 4, 2008 at 9:44 AM
Obama is relying on ignorance to get him elected. He is hoping the average person sees that Obama wants to punish evil rich people by taking their “windfall” profits and give them to the average person - wow, kind of sounds like Robin Hood - or Marx.
Unfortunately our system has devolved into a system where to get elected, a politician must promise everybody something. I will give you free healthcare, straight up money, free childcare, free college, free ________(fill in the blank).
I just want a leader to promise to allow me to remain as highly free as possible with less government interference in my life and the market. That is why I won’t vote for Obama or McCain but will vote for Barr. Let the Barr bashing begin.
King of the Britons on August 4, 2008 at 9:47 AM
Barack Obama… Socialist.
CP on August 4, 2008 at 9:47 AM
I don’t know about anyone else, but I’m really tired of seeing Fauxbama in anymore pictures. I hope he is defeated in a landslide, and I will no longer have to see this Socialist Democrat. Let him slither off back to the Senate and try to steal more pork or something…Lightworker my a##……….
adamsmith on August 4, 2008 at 9:49 AM
How about a windfall profits tax and salary caps on trial lawyers, Hollywood celebs, unions, gubmit bureaucrats and teachers!
petefrt on August 4, 2008 at 9:52 AM
It is totally unbelievable that Obama has removed all doubt that he lies more than both of the Clintons combined. The thing that is interesting now, how is he going to take credit for the surge working?
volsense on August 4, 2008 at 9:53 AM
McCain should talk about this and explain it to the American people. He needs to adopt this theme in his stump speeches. He needs force dems to define “windfall” profits. He can’t let them continue to get away with this
Dollayo on August 4, 2008 at 9:54 AM
What is a windfall profit? A feeling about a number? A specific percentage of profit?
The way Obama and the Dems talk, only carbon based energy companies that earn a profit over 8% will actually be charged with “windfall profits”.
While the oil companies were earning “windfall profits”, the tax receipts from them to the government have increased proportionately. The government makes more off a dollar of oil revenue in taxes than the oil companies make in profit - and now the government wants even more.
How will this lower our fuel prices?
SouthernRoots on August 4, 2008 at 9:56 AM
Since when is it “American” to take a “reasonable” amount of profit above and beyond the mandated taxes from every successful company?
drjohn on August 4, 2008 at 10:00 AM
I like this guy’s plan better. http://www.pickensplan.com/
scalleywag on August 4, 2008 at 10:06 AM
I still don’t get the idea of the windfall-profit tax.
Does anyone think the $1,000 dollar check (for most, it is a lot smaller than that) will not, in the end, paid by the consumers? Oil companies will just take the one-time penalty and write it off as loss? Or Obama is going to set the windfall-profit tax as permanent? “You shalt not exceed XXX amount, the rest I take away (for better things)”?
Sir Napsalot on August 4, 2008 at 10:07 AM
How dare the oil companies make eight cents on the dollar selling a product!
JammieWearingFool on August 4, 2008 at 10:08 AM
Looks like a crime to me. Hey let’s have a senate investigation!
8¢ on the dollar is CRIMINAL! Don’t you get it???
Mojave Mark on August 4, 2008 at 10:14 AM
Marx?….Yes
If I recall the story, Robin Hood robbed the Tax-Man
franksalterego on August 4, 2008 at 10:16 AM
Let’s review.
Democrats want to go after the profits made by Big Oil and hand the profits over to the poor folks in the form of a $1000 rebate.
Democrats want to raise the taxes of families with incomes in excess of $250,000 and transfer that wealth over to less productive folks in the form of lower taxes for the middle and lower classes.
So the lesson for today is, don’t even think about becoming an entrepenuer and building a multi-million dollar business from the ground up with your own blood, sweat and tears. Don’t bother to be ambitious in the work place, earning an income that allows you to survive without any government handouts, pay for your children’s college education and save for a future retirement paid for with your own money.
No my friends, Democrats believe hard work and success should be punished, not rewarded. They are not interested in what made America great, although the evidence of 200 years of growth and prosperity cannot be denied, they are only interested in controlling the masses and getting re-elected to discover more inventive ways to rob
PeterExxon-Mobil in order to payPaula Democrat voter.fogw on August 4, 2008 at 10:26 AM
This guy is starting to give post turtles a bad name.
tarpon on August 4, 2008 at 10:27 AM
Obama may take money from oil guys, but he’s acting against their interests. McCain is acting for their interests, thus the “pocket” reference.
unfortunately, this is pretty standard stuff of political advertising. It’s like any advertising… what can we say? Never mind what the truth is. But, at the very least, there is logic behind the Obama ad and there can be a case made that it is an accurate description (even if the reality is it isn’t… it’s a moot point).
But, if this sort of thing makes Obama irrelevant, what does the McCain ad that attacked Obama for not visiting the troops because he would not be allowed to bring press make McCain? that was just a blatant LIE. And, actually, to their credit, McCain’s camp backed off that claim.
didn’t see that mea culpa from you Ed…
Tom_Shipley on August 4, 2008 at 10:27 AM
Burt Folsom is on C-SPAN right now talking to YAF kids. Fantastic stuff.
Getting into the basic nature of entrepreneurship and and also the “oil crisis.” Great stuff to watch if you have the time.
coldwarrior on August 4, 2008 at 10:28 AM
Anyone know how much in taxes these companies paid already? I’m thinking it was a lot. They’ve already paid their dues, so why should I get a chunk of their profits? I’m also thinking that the majority of these oil companies are pretty big contributors to a lot of non profit orgs, and they spend a lot on exploration and research projects. And how many Americans have a pretty decent job because of their profits? Should they lay people off so I can get a thousand dollar rebate? It’s ludicrous.
Like someone said, the idea of running a company is to make money. Suppose this year Coca Cola makes a bazillion dollar profit, are we supposed to get a cut of that too?
scalleywag on August 4, 2008 at 10:29 AM
Very sneaky.
1. Threaten a profits tax on an industry.
2. That industry donates to your opponent.
3. Complain that your opponent is in the pocket of that industry.
4. I think I’m supposed to say profit! here.
kc8ukw on August 4, 2008 at 10:29 AM
Maybe Obama should see gas is down over $.50 from those pictures he shows. Then he should remember how much he’s made from ethenol companies. Obama is opening up doors that will lead to some bad things for him.
Rbastid on August 4, 2008 at 10:33 AM
If I may:
1. Threaten a profits tax on an industry.
2. That industry donates to your opponent.
3. Complain that your opponent is in the pocket of that industry.
4. MSM goes along with you helps to slander your opponent and you are elected president. Profits for the oil companies go down after you enact the law to punish these greedy capitalist bastards and they reduce operations to stay in business, just as happened when Carter was president. Americans suffer. Again.
wise_man on August 4, 2008 at 10:35 AM
“Obama may take money from oil guys, but he’s acting against their interests.”
How, by driving up the price of their product?
So Obama’s just working against the interests of the American people, not the oil companies. That’s much better.
Namby-Pamby-Obambi’s is in the pocket of the anti-American, Marxist left. Obama’s been endorsed by people who hate this country, including George Soros, Hamas and other assorted terrorists.
That’s what truly needs to be said.
NoDonkey on August 4, 2008 at 10:44 AM
Robin Hood + Karl Marx = B. Obama
petefrt on August 4, 2008 at 10:45 AM
Wow. 1,000 dollars from Hussein. I could use $1000 to pay the oil companies for five months of driving so the oil companies can buy the government candidates and elected officials. Whatacountry!
saved on August 4, 2008 at 10:51 AM
Obambi will send you a $1,000 check and tax you $2,000 to pay for it.
NoDonkey on August 4, 2008 at 11:01 AM
$1000 rebates?
This is just a thinly veiled attempt to buy votes.
Kingbee on August 4, 2008 at 11:10 AM
I think I’m going to read Animal Farm again…
Surely there’s something I missed…LOL!
jerrytbg on August 4, 2008 at 11:13 AM
By supporting offshore drilling.
Karl on August 4, 2008 at 11:17 AM
I’d like to see Gallop or Rasmussen put out a poll that asks.
Would you like a $1000 rebate from the government,or gas prices at $2.00 a gallon.
x-wing on August 4, 2008 at 11:21 AM
As mentioned earlier, Robin Hood was taking from the Tax Man (sheriff) and giving to the poor.
So, effectively;
Obama = Tax Man
Obama = Marx
cntrlfrk on August 4, 2008 at 11:25 AM
The internet devolves Teflon.
His schlock is starting to stick.
Speakup on August 4, 2008 at 11:44 AM
Mark, that would be one more investigation/hearing than he’s held on Afghanistan. HA!
MsUnderestimated on August 4, 2008 at 11:47 AM
Don’t forget professionl athletes and global-warming entrepreneurs. Especially global-warming entrepreneurs.
PattyAnn on August 4, 2008 at 11:50 AM
OK, my math tells me that is about 19% profits, for McDonalds.
9% is too high?
Maybe they need to make McDonalds give out free CheeseBurgers, oh wait, they are not allowing New McDonalds into minority areas in California.
Nutjobs.
WoosterOh on August 4, 2008 at 12:26 PM
Why should anyone buy stock under an Obama regime? If the company whose stock you hold does well, their profits will be taxed downwards to an arbitrary “acceptable” level. Acceptable to whom? Who gets to decide what a “reasonable” profit is?
This will have repercussions far far beyond the oil industry, and the negative effect on investment will be stifling and dangerous to our economy at a time when we can least afford it.
Say NO to “Robin Hood” schemes that would pick the pocket of pension funds and millions of Americans’ stock portfolios for a one-time vote-buying payout. Not to mention hand-cuff the oil industry’s ability to invest and explore for new sources of energy.
This is the most obvious bald-faced attempt to buy votes that I have ever seen.
hillbillyjim on August 4, 2008 at 12:34 PM
Thank you. I stand corrected. :)
petefrt on August 4, 2008 at 12:45 PM
Don’t just hope for more oil - vote for it. McCain ‘08.
Change (in policy) that you can believe in!
I R A Darth Aggie on August 4, 2008 at 12:55 PM
Thank you, Anita.
Maquis on August 4, 2008 at 1:55 PM
Why stop there? Would a broken paddle not make a good stake? Sounds like a good approach for dealing with Drill-killa!
Maquis on August 4, 2008 at 1:57 PM
THIS disturbs me greatly. The redefinition of the American Dream: You can go far in this country, just not too far.
ThePrez on August 4, 2008 at 3:12 PM
This whole ‘obscene oil profits’ scam really torqs me off at the highest levels at the utter amentia of the general population in regard to how things work.
When people start talking about a ‘windfall tax’ on oil companies, what they are essentially talking about is taking money right out of the every day consumer’s pocket and giving it to the government. There are two particular reasons why this is true.
First and formost, who in hades they think is, in the end, going to pay for these ‘taxes’? Me and you in higher product costs, gas prices, and everything in between. Taxes inherently get passed down to the customer, and this is no different.
Secondly, who is the largest stakeholder in the ‘obscene oil profits’? That would be me, you, and anyone else that holds any sort of retirement account. Some of the largest portfolio holders of oil stock are state and federal government retirement plans, and private pension plan accounts. I.E. people like me, working for a state college system, and also holding another retirement account from a previous employer.
So when these idiots start talking about ‘windfall tax’ on oil companies, somebody (Hello John McCain?) needs to start making it patently clear where exactly and what exactly those taxes will effect. It certainly ain’t going to help gas prices, thats one thing that can be guaranteed. It will effectively be stealing money from me (the middle class) to fund more government wastefulness.
buddyellis on August 4, 2008 at 3:32 PM
How about an ad like:
“Obama, Pelosi, and Reid want to rob your retirement fund and blow it on the wind”
landlines on August 4, 2008 at 4:04 PM