Chavez Steals a Page From Democrat Playbook, Proposes Windfall Oil Tax

The Venezuelan Socialist crackpot is stealing ideas from the Democrats.

Venezuela may create a windfall oil tax on earnings generated by quick increases in oil prices, President Hugo Chavez said on Sunday, extending the OPEC's nation's efforts to increase revenues from the oil industry.

The leftist Chavez has led a drive to boost taxes on oil companies and increase state control over the industry, a crusade that has led to an escalating legal battle between Venezuela and Exxon Mobil over nationalized assets.

"Soon I want to be presented with a recommendation for what we could call the tax on sudden earnings," Chavez said during his weekly Sunday broadcast.

Reading this, it all sounded so familiar.

Democrats, now freshly in control of Congress, are likely to want to get more oil money into government coffers.

A windfall profits tax on the oil industry is a typical tack. And it is likely to be put forward again. But, despite the change in control, such a proposal would face a tough fight and, probably, ultimately fail. And so the attack may go a different route and target tax breaks and royalty payments.

Oil companies have been making record profits off the record oil prices of late, with ExxonMobil pocketing over $10 billion last quarter alone. Much of that money has been returned to shareholders, which include large pension and mutual funds, in the form of share buybacks and dividends.

Chavez claims his idea came from Nobel laureate economist Joseph Stiglitz.

Sounds more like it came from Nancy Pelosi.