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CRS Concludes That The 1980 “Windfall Profit Tax” Reduced Supply And “Made The United States More Dependent On Foreign Oil”
THE 1980 WINDFALL PROFIT TAX “MADE THE UNITED STATES MORE DEPENDENT UPON FOREIGN OIL”
CRS REPORT: “Dependence On Imported Oil Grew From Between 3% And 13%.” (Salvatore Lazzari, "The Crude Oil Windfall Profit Tax Of The 1980s: Implications for Current Energy Policy," Congressional Research Service, 3/9/06)
CRS REPORT: “The WPT [Windfall Profit Tax] had the effect of reducing the domestic supply of crude oil below what the supply would have been without the tax. This increased the demand for imported oil and made the United States more dependent upon foreign oil as compared with dependence without a WPT.” (Salvatore Lazzari, "The Crude Oil Windfall Profit Tax Of The 1980s: Implications for Current Energy Policy," Congressional Research Service, 3/9/06)
CRS: “THE ENTIRE EFFECT OF THE TAX IS TO REDUCE DOMESTIC PRODUCTION AND SUPPLY”
CRS REPORT: “From 1980 To 1988, The WPT May Have Reduced Domestic Oil Production Anywhere From 1.2% To 8.0% (320 To 1,269 Million Barrels).” (Salvatore Lazzari, "The Crude Oil Windfall Profit Tax Of The 1980s: Implications for Current Energy Policy," Congressional Research Service, 3/9/06)
CRS REPORT: “Oil producers could not shift the tax forward as a higher oil selling price because the purchaser would merely substitute imported or tax-exempt crude. Instead, the WPT reduces the net selling price paid to producers. As noted earlier, the first purchaser (generally the refiner) subtracted the tax from the price paid to the producer (supplier) -- the producer's net selling price of each barrel of oil was less by the amount of the WPT. This inability to shift the tax forward implies that the entire effect of the tax is to reduce domestic production and supply. In other words, U.S. domestic oil production was, to some degree, lower as a direct result of the WPT.” (Salvatore Lazzari, "The Crude Oil Windfall Profit Tax Of The 1980s: Implications for Current Energy Policy," Congressional Research Service, 3/9/06)
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