Bill N Wrote:
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> Macky-You are being disingenuous. The difference
> between 1) collecting $100k from a taxpayer and
> then turning around and giving the taxpayer $100k
> as a subsidy and 2) imposing a tax that would
> ordinarily result in the business paying $100k in
> taxes but then giving them a special credit or
> deduction that offsets that $100k liability is one
> of form rather than substance. To cite a
> nonbusiness example, employees are usually
> required to have social security taxes withheld
> from their wages, but many low income taxpayers
> have this tax partially offset by the earned
> income tax credit. Now would it make a damn bit
> of difference financially to these employees if
> instead of giving them a tax credit we instead
> sent them welfare checks each month? Of course
> not. Either way that low income taxpayer will end
> up in the same financial condition. The fact that
> one welfare program is managed through the tax
> code and the other would be managed through a
> separate welfare agency is, except for
> administration costs, financially irrelevant. The
> same applies except in your world to corporate
> credits and deductions. Welfare that is
> administered through the tax code is still
> welfare.
>
> Since you are so hyped up on robbery consider
> this. Everything that the government spends has
> to be paid for. It can be paid for by selling off
> government assets, by current taxes collected from
> taxpayers or from borrowings, which I think we
> both agree is simply a tax on future taxpayers.
> If you extend a special deduction or credit to a
> taxpayer or small group of taxpayers that really
> results in a re-allocation of the costs of
> government either to the remaining taxpayers or to
> the future taxpayers. So what is happening here
> is that the government is coming in and saying we
> don't think you gave the oil companies enough
> money when you bought their product so we are
> going to have you pay their taxes too. Now that
> is creative robbery. No wonder they pay their
> lobbyists so well.
The problem is Bill the "big four" pay a hell of a lot more in taxes then you can imagine. The government already rakes .88 cents per gallon. The average profit for "big oil" is .07 cents per gallon. tell me Bill, when is the government going to "sacrifice"?
Exxon's tax payment in 2007 of $30 billion (that's $30,000,000,000) is a record, exceeding the $28 billion it paid in 2006.
By the way, Exxon pays taxes at a rate of 41% on its taxable income!
[Update: The $40.6 billion and $39.5 billion figures are after-tax profits. For 2006, Exxon's EBT (earnings before tax) was $67.4 billion, it paid $27.9 billion in taxes (41.4% tax rate), and its NIAT (net income after tax), or profit, was $39.5 billion.]
This includes your fake "subsidies" Bill. So what's another $4 billion you ask?
Other than the fact it is immoral and will be past on to you at the pump, nothing.