Why is Fred Thompson against a windfall profits tax against the petroleum companies?

[SonoIwakuoKokoro]

Why not a law that states that if a company makes over so much money in a quarter that it has the option of either reinvesting it in exploration, increased production, enlarging refining capabilities and infrastructure or forfeit the over the line profits to the government to be distributed back to the consumers? Wouldn't that make sense? It seems to me that that would either eleviate the problem of short supply and high prices for the consumer. Why hasn't any of the candidates for President thought of this already?
I'm not an idiot. I've seen the ridiculous profits posted every quarter by the oil companies. Further I am aware that it does not take forever and a day to build a new refinery. From what I here, there are not even any plans in the works for a single new refinery in the U.S.

[wiseolguy]

because we are in america and this is a capitalist society. if you think oil companies make a lot of money you should buy their stock.

[solution11]

Because any tax imposed would be returned to the consumer as a higher price.

[wellson]

The issue is that these companies cant go reinvest the next day. Sometimes they have to wait years before reinvesting in new fields and such and then have to lay out billions in order for the exploration and transportation of the new product. Oil companies are within 5% for profits to begin with and in terms of % that isnt very high.

[wintersrayne]

Should we bail them out if they fail? Fred's arguement is a good one. Profit margins for oil companies have been consistently about 10% for about 60 years. They have increased costs of exploration and development that has to come out of Profit.

Profit Margin and Profit are two very different things.

They are reinvesting. Also dividends are going into your 401k, my 401k, my retirement, your retirement.

Profits are not bad. Government intrusion in free enterprise IS bad. Government does not know how to run a business.

They problem with domestic refineries and exploration is directly attributed to government regulatory issues as the result of the ecowhack lobbyists.

[Rich]

Because anyone with a brain knows that the stock holders get the money. That's pretty much everyone with a 401K in the country.