Wednesday, November 09, 2005

The REAL Oil Pirates...

The Senate wasted today with a politically motivated, useless, grandstanding investigation into the "excessive" profits of the oil industry in the wake of hurricanes Katrina and Rita.

They were careful to leave out any mention of the real profiteers of the oil trade.



From The Tax Foundation website...

"State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry
by Jonathan Williams and Scott A. Hodge
High gas prices and strong oil company earnings have generated a rash of new tax proposals in recent months. Some lawmakers have called for new “windfall profits” taxes—similar to the one signed into federal law in 1980 by President Jimmy Carter—that would tax the profits of major oil companies at a rate of 50 percent. Meanwhile, many commentators have voiced support for the idea of increasing gas taxes to keep the price of gasoline at post-Katrina highs, thereby reducing gas consumption.
However, often ignored in this debate is the fact that oil industry profits are highly cyclical, making them just as prone to “busts” as to “booms.” Additionally, tax collections on the production and import of gasoline by state and federal governments are already near historic highs. In fact, in recent decades governments have collected far more revenue from gasoline taxes than the largest U.S. oil companies have collectively earned in domestic profits. "

These hypocritical politicians have engaged in a political witch hunt aimed at the oil industry, ignoring the fact that Taxes on gas and heating oil are HIGHER THAN THE PROFITS REALIZED BY THE COMPANIES THAT THEY SEEK TO DEMONIZE.

"In the wake of Hurricane Katrina and the devastation that has followed, consumers are feeling the economic consequences of the disaster. Record gasoline prices are constantly in the headlines, which leaves many asking why prices are so high. While supply and demand are the primary determinants of gasoline prices, a significant portion of the price consumers pay at the pump can be attributed to gasoline taxes. In fact, the federal gas tax alone equals 18.4 cents for every gallon purchased."

So our Senators are grilling "Big Oil" for making a 9.8% profit on gasoline while the Federal Government makes 18.4 cents per gallon?

And in addition, the Senate is considering imposing a "Windfall Profits Tax" on the oil industry, and they are doing it because they think that the American people are so stupid that they will think that the oil companies should be punished for making a profit. (And they are probably right.)

Does no one besides me realize that Corporations do not PAY taxes? Corporations COLLECT taxes. They do not PAY them. You CAN'T MAKE THEM PAY TAXES. They add taxes to the top of the price of whatever they sell. IN ADDITION TO PROFITS. The only thing that a "Windfall Profits Tax" on oil will do is RAISE prices at the pump, and send money to an already bloated and overfed Government.

Where are the tax cuts?

Wouldn't that be the quickest, easiest way for the government to provide relief from high gas prices at the pump?

Are they interested in the well being of the consumer or not?

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