Tuesday, May 17, 2011

Some Of Us Aren't Grossed Out By Profits

From David Harsanyi writing in NRO:

"Some of us, believe it or not, aren’t completely grossed out by the notion of profit — even a lot of profit. Strong earnings are good news not only for those dastardly Oil Barons, but for the millions of people who depend on the industry for their employment, as well as the vast number of Americans who rely on investments in oil to bolster their pension funds, retirement funds, college funds, etc.

An industry as useful, wide-ranging, and essential to the economy as fossil fuel is inevitably going to entail talk of “billions.” Oil corporations are indeed “highly” profitable, averaging around a 7–8 percent profit margin the past few years — but they’re less profitable than government, which hauls in a higher margin on, for example, gas taxes.

How much would Harry Reid and friends save Americans by ending these tax perks? In five years, an estimated $18 billion. To put this savings in perspective, the federal government borrows around $28 billion every week. To make this kind of trivial savings the focus of a high-profile plan to is to engage in transparently political gotchas."

19 Comments:

At 5/17/2011 8:13 AM, Blogger Dr William J McKibbin said...

I personally am not "grossed out" by profits earned on Main Street America -- the truth is I own a very profitable business -- what grosses me out is outrageous profits earned by government funded public corporations, including the automobile, defense, and "too big to fail" banking sectors -- said another way, I am all for profits along Main Street that enhance family and community life -- I am against profits generated by the military-industrial complex and "too big to fail" banking institutions...

 
At 5/17/2011 8:17 AM, Blogger Larry G said...

I'm not grossed out by profits either but I think comparing investor's profit to taxes to pay for road infrastructure is not a particularly relevant comparison.

I'm actually opposed to taxes on businesses to start with but I'm also opposed to subsidies.

Why not stop taxing businesses that produce jobs and make up the difference with a national consumption tax - progressive for higher end luxury items?

 
At 5/17/2011 9:11 AM, Blogger T J Sawyer said...

I have frequently found some of my relatives to be grossed out by profits. I always suggest, "If oil company profits are so high, why don't you buy one? They are all for sale."

Any of them that followed my advice back in the 1970s-80s with a couple of thousand dollars would be doing quite well by now. As I do remind them!

 
At 5/17/2011 9:13 AM, Blogger Che is dead said...

"... comparing investor's profit to taxes to pay for road infrastructure is not a particularly relevant comparison."

First, most of the taxes collected in this way are not used for road projects they are channeled into other government activities. Second, when the government is holding show trials of executives and accusing them of overcharging the public, the comparison between what the company makes versus what the government takes in in the form of taxes on the sale of the same product is completely relevant.

 
At 5/17/2011 9:21 AM, Blogger Che is dead said...

"I am against profits generated by the military-industrial complex ..."

Providing for the national defense is a constitutionally mandated activity, and provided that military contracts are awarded through a competitive bidding process there is no reason that the companies executing those contracts should not earn a profit. Do you work for free? You can argue that the government spends too much on defense, but that is a seperate issue.

 
At 5/17/2011 10:13 AM, Blogger Larry G said...

well taxes are collected no matter whether we have show trials are not...

I still don't see the connection between taxes and profits anyhow because taxes are how we pay for roads, schools, and other myriad public infrastructure and facilities.

roads, schools, libraries, courts, police, fire&rescue, etc, etc, etc.....

the frustration that many have is the lack of transparency as to what taxes are spent for...

.... AND a lack of agreement as to what they should be spent for....

some would spent it for roads but not the military industrial complex while others would do the reverse.

the trick is to find what we do agree on... and not... and promulgate policy per elections.

 
At 5/17/2011 10:50 AM, Blogger juandos said...

Well if one looks at the way federal taxes are wasted we can see that in excess of 60 cents of every extorted dollar goes to constitutionally questionable spending...

 
At 5/17/2011 10:59 AM, Blogger Larry G said...

of course than is one opinion, right and not the SCOTUS....

:-)

 
At 5/17/2011 11:13 AM, Blogger juandos said...

Well just because the politicos that have defiled the SCOTUS bench presently and in the past it doesn't make said spending any more Constitutional...

Reason.tv: The Meaning of Socialism

 
At 5/17/2011 11:16 AM, Blogger Larry G said...

long standing though... many different SCOTUS over the decades have ruled such tax and spending as Constitutional and there is a chance of a proverbial snowball in hell of any SCOTUS ruling otherwise any time soon,

right?

 
At 5/17/2011 11:17 AM, Blogger Benjamin said...

I love profits, I hope profits soar on the S&P 500, and everywhere across America.

As for the military-VA-Homeland Security archipelago, it is time to sunset it, and start fresh, along the HUD, the USDA, Education and Labor.

 
At 5/17/2011 11:25 AM, Blogger juandos said...

"...many different SCOTUS over the decades have ruled such tax and spending as Constitutional..."...

So is this a call to applaud criminal behavior?

 
At 5/17/2011 11:27 AM, Blogger Larry G said...

well.. we're spending 1.5 trillion more than we are taking in - in taxes.

I keep asking... to see the 1.5 trillion in proposed cuts as I have never seen a definitive list from a single politician who says we must cut....

they blather on ...cut,cut,cut but when you ask for their list they suddenly have something else to do.

 
At 5/17/2011 11:29 AM, Blogger Larry G said...

" So is this a call to applaud criminal behavior?"

I guess it depends who gets to decide what is criminal behavior, eh?

Doesn't the Constitution give that to the Judiciary and Congress?

 
At 5/17/2011 11:52 AM, Blogger juandos said...

"Doesn't the Constitution give that to the Judiciary and Congress?"...

No...

US Constitution

Not Yours To Give: Col. David Crockett US Representative from Tennessee

 
At 5/17/2011 12:02 PM, Blogger Larry G said...

back up now...

explain carefully the reasoning....

I'm a slow learner.. :-)

 
At 5/17/2011 12:49 PM, Blogger juandos said...

"explain carefully the reasoning"...

Hence the reason for the links...

You may also want to look at the following from Dr. Walter Williams: Commerce Clause Abuse

 
At 5/17/2011 2:15 PM, Blogger Larry G said...

yup - read the links - but those are assertions with respect to what someone, an individual believes the Constitution means.

The Constitution itself delegates that to Congress and the SCOTUS whose opinions are the ones that count.

right?

isn't this WHY we have the SCOTUS? to make the final determination when there are differing opinions?

 
At 5/18/2011 10:58 AM, Blogger juandos said...

"isn't this WHY we have the SCOTUS? to make the final determination when there are differing opinions?"...

Larry G the SCOUTUS isn't there to invent 'imagined' stuff that isn't in the Constitution, hence the reason for the Walter Williams piece...

 

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