. . . . . We hear of the high price of gasoline, but nothing is mentioned about oil company profits and no action is taken. In the past year, the profits of gasoline and oil have reached nearly $50 billion. Profits of oil companies should be limited to about $10 billion. Everything above that should be paid in taxes or gasoline price reductions. (Daytona Beach News-Journal, April 30, 2011, William Kaletta, Ormond Beach, FL)
. . . . . This liberal letter writer adds two and two and arrives at a thousand. He clearly has read too much about the evils of American and foreign businesses, and too little about the evils of large government and the folks we send to Washington. He worries about fleas on the dog, when it is the dog that pays the price. It is American businesses that pay the highest corporate tax rates among all developed countries in the world.
. . . . . Government revenue comes from company profits. If governments limit profits, they cut their own revenue through reducing tax collections. Now lets apply this to last year’s gulf oil spill. Our liberal president did nothing for 90 days, then slapped a six-month moratorium on further drilling and exploration in the gulf. Drilling rigs moved out of the Gulf of Mexico to places like Brazil, leaving unemployment in its wake.
. . . . . It was estimated at the time that for every job on a drilling rig that an additional four jobs is supported on shore. The 20,000 jobs abandoned on drilling rigs in the gulf resulted in the basic support for a total of 100,000 jobs along the coast and throughout the country. This is the way our president supports employment. In the process of “finding out whose ass to kick” with his left hand, he destroys 100,000 jobs with his right.
. . . . . The revenue normally invested in drilling new wells and employing more folks could not be reinvested in additional drilling or exploration. Drilling permits across the country have been brought to a halt, and the funds normally invested in exploration, expansion, and employment is now accumulated as a profit, and is taxed by the government.
. . . . . Limiting profit places a cap on how fast companies may grow through reducing the capital available to investment in plant and equipment. This costs jobs, and slows recovery. But then, it appears this is what our liberal letter writer and our liberal president really want.
Our president has been quoted as saying that “when his (energy and environmental ) policies are implemented, the cost of energy will necessarily skyrocket”
. . . . . One additional issue contributes substantially to high gas prices. Together with the EPA our president supports alternate fuels, like ethanol. Currently ethanol is manufactured largely from corn, and receives a generous government subsidy. Some 40% of our entire corn crop is diverted to fuel for our cars, raising the cost of gasoline, and contributing nothing to a cleaner environment. In addition to the subsidy, our brilliant government has erected a tax on imported ethanol, raising the price of foreign ethanol to all American customers. If the entire corn crop was converted to fuel (100%), it would make no more than a 3-4% offset in the country’s energy needs. At the same time it would eliminate corn as a food for folks or pigs, a primary food source.
. . . . . Hello! Liberals everywhere. This is what you are seeing now, the skyrocketing of energy prices. I thought this was what you wanted by the slogan “change you can believe in”. Now you have it, and you don’t like it. Would you please make up your minds!
. . . . . No doubt this liberal letter writer has heard of General Electric and Jeffrey Immelt, Obama’s favorite CEO. GE made $14 billion in profits last year and paid no income taxes! Now what is it that GE had done that exempts it from paying taxes? At least the evil oil companies paid revenue to the government through taxes. GE paid nothing from its profits! Go figure.
. . . . . If our liberal letter writer actually owned stock in American business and industry he might identify with them as the engine of the country’s economy. It is only profit (getting ahead) that provides an incentive to own or operate a business in the first place. Profit is what may be reinvested in growth of a business, hiring more employees and supporting the economy.
Profits are a problem