Wednesday, April 26, 2006

Tax Big Oil Companies! ...yeah, right.

Many people (who know nothing about economics) are calling for big taxes on Big Oil. Some are asking for a "windfall profits tax" (I'm not sure how you call an 8.2% gain a "windfall"), while others want to remove tax incentives.

Here's a "secret" for all you socialists: corporations do not pay taxes!

Do you actually think that there is one guy who sucks up the tax increases? Corporations are made of people. Employees, shareholders, etc. When you raise taxes, that gets passed on to all the people involved in the company - including customers!

If you raise taxes on Big Oil, you damage employee salaries and benefits, you deflate stock value (do you have a 401K?), you reduce supply, and you increase prices at the pump!

1 comment:

Anonymous said...

Milton Friedman once famously remarked that "corporations don't pay taxes, people do." The little guy gets hit with the bill, just like Rich is saying here...