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James L asked in Politics & GovernmentPolitics · 9 years ago

Wouldn't raising the oil companies' taxes increase the price of gas?

President Obama claimed that every one penny increase in the price of a gallon of gas translates to a $200,000,000 increase in oil company profits. Logically if the government took away $4,000,000,000 from the oil companies by raising their taxes, they would need to raise the price on a gallon of gas by $0.20 to cover the extra cost. That sounds like the worst idea for lowering gas prices I've ever heard of. How does this mindset work for democrats? Do they actually believe that higher taxes on corporations will lower prices for the consumer? Or do they just think people are stupid and attacking those perceived as rich will rile up the uneducated masses?

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  • 9 years ago
    Favorite Answer

    As with most businesses, both large and small, taxes are treated as an expense item. When the cost of doing business goes up, the price of their goods and services to the consumer go up to pay their higher costs of dong business. Some businesses will absorb higher costs for awhile, but at some point they must raise their prices or go out of business.

    This BASIC economic reality seems to escape the logic(?) centers of most liberal brains. Come on guys think about it. What happens at your place of employment if the costs go up? They either lay people off or raise their prices.

    Taxes are not some magical weapon to punish corporations. They don't pay. The only way taxes are paid is by you and me and the rest of the PEOPLE through direct taxes, fees, inflation and higher prices for goods.

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    6 years ago

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  • 9 years ago

    Did you know that here in the U.S., oil companies only make a few cents a gallon on gas? Washington gets much more than the earl companies do.

  • 9 years ago

    Look, if we all convert to algae we wouldn't have a problem

    PS: Oops, on second thought, that might incite the forming from the left-wing

    of The Algae Liberation Front.(similar to PITA)

    I guess I'll go back to the drawing board..;-)

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  • Anonymous
    9 years ago

    Yes because as everyone already knows, Corporations don't pay taxes they simply pass those costs on to the consumer

  • 9 years ago

    It would cause gas prices to shoot up quite a bit. Liberals have no sense of how the market actually works.

  • Anonymous
    9 years ago

    Bill you forgot Congress, and afterwards when they become lobbyists.

    http://www.iquestionauthority.wordpress.com/2012/0...

    http://www.republicreport.org/2012/make-it-rain-re...

    a 1,453% raise, sweet.

    and then there's the insider-trading they do as well

    http://www.cbsnews.com/video/watch/?id=7388130n

    Look to your own house, and the corruption & greed within it you "Monarch".

    Precisely as moronic as expecting the debt to go down if you raise taxes to get Congress more money.

    They're the ones who passed a law that gives them automatic pay raises, unless they agree to call a special session to discuss not getting one (for that cycle).

  • Anonymous
    9 years ago

    Gas is less profitable than most things we buy.

    Big Oil

    Net Profit Margin (mrq): 7.9%

    http://biz.yahoo.com/ic/120.html

    Restaurants

    Net Profit Margin (mrq): 9.9%

    http://biz.yahoo.com/ic/712.html

    Education & Training Services

    Net Profit Margin (mrq): 9.9%

    http://biz.yahoo.com/ic/766.html

    Conglomerates

    Net Profit Margin (mrq): 13.1%

    http://biz.yahoo.com/ic/210.html

    Internet Information Providers

    Net Profit Margin (mrq): 23.8%

    http://biz.yahoo.com/ic/851.html

    Personal Computers

    Net Profit Margin (mrq): 16.2%

    http://biz.yahoo.com/ic/811.html

  • Anonymous
    9 years ago

    Oh, no, First they will tell all their shareholders (mostly retiree's) that they are not getting their dividends any more. (YEAH RIGHT)

    Then a month later, THEN they will raise the prices.

  • 9 years ago

    So you blame Obama? Are you serious? You just stated Oil companies would raise the price .20 to offset it. Is it Obama's fault that he can't control the Free Market?

    You just basically said

    THE PRESIDENT CANNOT CONTROL OIL COMPANIES..........Glad you finally got it!

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