Congressman Proposes Sin Tax on Oil Speculators

Saturday, August 08, 2009

Levying a tax on oil speculation would produce two important benefits for the country, argues Congressman Peter DeFazio (D-OR) and supporters of his plan. By treating oil speculation like gambling, and implementing a 0.02% sin tax on the trading of oil options and futures, the government would have more than enough money to close the $140 billion gap in the Highway Trust Fund, and it would curb the rampant speculation that has caused the oil market to fluctuate so wildly in recent years. The plan would exempt the airline and trucking industries from the tax, to allow these gas-guzzling sectors to continue “hedging” their bets for future energy costs. DeFazio’s bill is primarily aimed at high-risk speculators who have made huge sums from rapid trading oil futures that can cause the price to soar and plunge.

-Noel Brinkerhoff
Wall Street Hold’em (by Nathan Diebenow, Lone Star Iconoclast)


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