At least that’s how the headline should read. Liberals have not learned anything in decades, all they know how to do is tug at the heartstrings of the working family and promote feel-good legislation that does nothing.
Point in fact; when you increase the tax burden on a business, the business is forced to make decisions. The business owners and leaders can choose to pay those extra expenses directly from profits (screw the shareholders or business owners), raise prices (screw the consumer) or cut compensation and benefits (screw the employees).
So congress has, once again, determined that the big bad oil companies are making too much damn profit. Mind you that Exxon Mobil Corp. just reported a whopping profit margin of 10.85 percent during the trailing 12-month period as of the end of March. Sure, their gross profit was more than $170 billion dollars, and their net income was somewhere around $42 billion but let me tell ya, they sold a lot of fuel.
Keep this in mind – conservatives will look at the profit margin percentage (10.85 percent) when a liberal will look at the highest number that they can find in the balance sheet ($170 billion dollars), and compare that to how much the current minimum wage is in Alabama – just for effect.
Makes you feel bad doesn’t it?
Democrats’ Oil Windfall Tax Plan Fails in Senate Vote
Tuesday , June 10, 2008
WASHINGTON – Senate Democrats failed to gain enough votes on an energy bill that would have imposed higher taxes on oil companies, which are making record profits as oil and gasoline costs continue surging higher.
Republicans led a charge against the tax, saying it would tinker with the market and lead to suppressed oil supplies at home, and wouldn’t bring in the money as planned.
The Republicans are right.
The bill also would have rescinded $17 billion in tax breaks the companies expect to enjoy over the next decade.
I’m completely fine with that. Let’s remove all of the federal tax breaks – including those to agriculture and other businesses while we’re at it.
The Democrats’ energy package also would have:
- Made oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.
- Authorized the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.
- Required traders to put up more collateral in the energy futures markets to curb speculation.
Are they kidding? Again, feel-good legislation. Price gouging, price fixing and those greedy commodity traders – that’s who’s at fault! Won’t do a darn thing to lower prices, increase supply or decrease demand.
Finally, what the heck does this mean?
The Senate proposal would impose a 25 percent tax on profits over what would be determined “reasonable” and would allow oil companies to avoid paying the tax if they invest the money in alternative energy projects or refinery expansion.
Reasonable? Who the heck determines what is reasonable?
Malkin has more including information on how your Senator voted today.