It seems the holler has drowned out the topic.
First. The new law is specifically toward DOMESTIC oil companies. Companies that produce, refine, and sell in the US. This would include all the big guys EXCEPT one......Citgo......
Citgo is the Venezuelan (Hugo Chavez) oil company. They alone will still receive their tax credit. This gives them a marked advantage competitively. They can either keep pace with the coming increase in gas costs and enjoy even more profits, or capitalize on the opportunity to gain market share by maintaining margins and undercut our domestic companies.
That should be what we are concerned with. This is an example of more favoring foreign (China - Clintons, Venezuela - ?) corporations over American ones.
This forces companies to move operations over seas in order to keep market share. The now have to stop producing, refining, or selling in the US in order to stay competitive. This will inevitably be fed to the masses as more evil corporations moving American jobs overseas. I believe the same party that currently holds the majority in the Congress that passed this legislation is the party that feeds the 'American jobs overseas' line to their base. First China, now Venezuela.
But lets keep em' bickering about profits being unethical and corporations being evil. Like WAs sig reads, "Get em asking the wrong questions and you don't have to worry about the answers".
As for taxes vs. profits for businesses, it's clear how few actually own a business with employees. It costs $1.37 to pay $1.00 in wages when the matching SS and Medicare payments, workers comp and unemployment, etc. are tallied up. Plus the local, State and Federal taxes, a corporation pays far more then it keeps in profits. It's like your kid seeing your paycheck as an employee and saying 'What do you mean you can't afford a motorcycle, you have the money right there!!"
As an employee think about the deductions taken from you before you see the check as government regulation, your various mortgage, car payment etc. as overhead, your credit card payments as burden, and see what is left. THAT is your 'profit'. Now did you pay more taxes then you kept as 'profit'? 'But I'll get a refund!' OK, say you get a $3000 dollar refund. That's $250 a month. You KNOW they took more then $250 a month right...... And by giving you $3000 in a lump compared to what your usual 'profit' is you perceive it's all good!
A 10% margin is nominal for a business, a 33.3 is exceptional. no corporation is below 33 and a third in taxes save maybe a sub S with no employees. To pay twice or three times in taxes what you kept in profits is not at all odd, let alone unbelievable unless your so far removed from how a business actually works to fathom Daddy's paycheck amount doesn't mean you can now afford motorcycle.
Now, thinking about what I said before, the RIGHT question is 'Does this legislation help South America become the next China?' or maybe 'Why are Domestic oil companies targeted?' But guess what, people are actually cheering the hit on one of the few remaining large scale manufacturing industries left in the US. And will damn sure wail in unison when the relocate production and refining overseas to be done by S. American workers.
