• Record oil prices netted Exxon Mobil a $10.89 billion profit in the first three months of the year, sharply higher than a year earlier but short of Wall Street estimates and below what was needed to set a new all-time profit record. (Link)
• In the January-March quarter, San Ramon, Calif.-based Chevron posted net income of $5.2 billion, or $2.48 a share, up from $4.7 billion, or $2.18, in the year-earlier quarter. Revenue increased 40% to $64.7 billion. (Link)
• (Hillary) Clinton continued, "I believe we should impose an excess profits tax on the oil companies. They have record profits that they frankly are just sitting there counting because they are not doing anything new to earn it; they are just taking advantage of what is going on. (Link)
• Democratic presidential hopeful Barack Obama today called for a windfall profits tax on oil companies, which he said would be used to ease the burden of rising energy costs on poor and middle-class Americans (Link)
• Fed up with price gouging and federal inaction on energy, four out of five Americans - including 76 percent of Republicans -would support "a tax on the windfall profits of oil companies" if the resulting revenues were devoted to alternative energy research (Link)
• In a telling sign of the political impact of soaring energy prices, the Republican-controlled Senate Finance Committee voted on Tuesday to impose a $5 billion (windfall profits) tax next year on the nation's biggest oil companies. (from 2005 - Link)

So, it seems imposing windfall profit taxes on oil companies has wide public approval and bipartisan support. 

I have to disagree.  This is pure capitalism, folks.  Strictly speaking, the oil companies have done nothing illegal (yet) in realizing their profits.  Public companies are obligated to make a profit and provide return for their shareholders.  Penalizing industry for their success is antithetical to capitalist ideals.  One can't tout capitalism and denounce those corporations practicing it successfully.

That said, there are laws that prevent corporations from price gouging.  The laws are intended to prevent entities from exploiting emergency situations at the expense of captive consumers.  But, in order to consider price gouging against a corporation, a civil emergency has to be declared and I'm not aware of anyone calling this a civil emergency. 

It does seem, given the huge profits these oil companies are posting, the tax breaks and subsidies that have been provided over the last several years (deductions for exploration costs, elimination of royalty payments, exemption from environmental standards, etc.) should be reconsidered.   It sure doesn't seem that corporations  posting record profits quarter after quarter needs the kinds of special consideration the Bush Administration has heaped on them.

High fuel prices are imposing havoc on the economy.  And whatever tack you take, be it windfall profits taxes or corporation tax credit and subsidy eliminations, it's just crazy to think the oil companies won't pass these new operating costs onto the consumer in just more expensive gasoline.  It's about profit.  It's about beating profit numbers quarter after quarter.

It's what Wall Street wants.  It's what Wall Street expects.