Fact, Opinion and Annoyance

Another one bites the dust
December 3, 2008, 7:46 pm
Filed under: Politics | Tags: ,

Obama ditches oil company tax

This just keeps getting better and better.  The whole idea was stupid anyways.  Oil companies don’t set the price of oil, they respond to it.  Taxing them based on the price of a barrel of oil would be like raising the sales tax commensurate with the price of milk.  Once milk hits $5 a gallon, you get to pay an extra % in sales tax when you buy it.

And let’s say you use the milk to make cookies to sell.  Do you just suffer the extra % sales tax?  Probably not if you can charge a few cents more a cookie and keep your profit margin (you know, the money left over after you pay all the business bills, so you can pay your personal bills).

So guess who would be paying for the oil companies “windfall profits” tax anyway?  That’s right – you, me, and everyone else who buys petroleum products.  Yeah, way to get those big, bad oil companies!

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