Venezuela OKs Taxing Oil Companies' Profits

Venezuela moved to take a greater cut of windfall oil profits, approving a 50 percent tax on foreign oil companies when crude tops $70 a barrel. The tax would rise to 60 percent when the average monthly price for benchmark Brent crude exceeds $100. The legislation will take effect as soon as it is published in the official gazette. revenues from the tax could reach $9 billion annually. Wow! That's a heap of money. Crude oil reached about $118 yesterday if I remember right.

Venezuela Changes Currency

Venezuela is launching a currency with the new year, cutting off three zeros from denominations in a bid to simplify finances and boost confidence in a money that has been losing value due to high inflation. President Hugo Chavez's government says the strong bolivar will make daily transactions easier and cure some accounting headaches. Officials also said it is part of a broader effort to contain rising prices and strengthen the economy. Prices have risen as Chavez has pumped increased amounts of the country's oil income into social programs, reinforcing his support among the poor and helping to drive 8.4 percent economic growth in 2007.