Saturday, July 29, 2006

Senator Dick Durbin's call for a windfall profit tax on oil comapnies would hurt Illinois teachers and retirees

Yet another politician is complaining about the recent announcement of record oil industry profits. This time it's Senator Dick Durbin of Illinois, who has called for a windfall profit tax on oil compaines. From 'Critics jump on big oil's huge profits':

...Joining Exxon Mobil in reporting much higher profits this week are Royal Dutch Shell PLC, BP PLC, ConocoPhillips and Chevron Corp. Analysts estimate total earnings among the five biggest oil concerns will hit $33.6 billion, about 32 percent higher than a year ago....

...Still, legislators used Exxon Mobil's numbers as a chance to take another swipe at the industry."We have a situation in the United States where the oil companies are frankly making outrageous profits," Sen. Dick Durbin (D-Ill.) said in a speech Thursday. "So think of this when you go to fill up at the gas pump."
Current and retired Illinois teachers - many who are probably NEA members and natural constituents of the the Democratic Senator - must also have been thinking about the higher profits. Those same profits are going towards fattening the returns in their retirement portfolios.

From the Investments section (page 59) of the Teacher's Retirement Systems 2005 Comprehensive Annual Financial Report we see that if the Exxon Mobil and Chevron investments were combined they would make up the #1 invetment gategory in the equity holding's top 10:



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