Let’s conclude that Big Oil tax break for new oil drilling is cut. What would the possible results be? First Big oil may increase prices and keep investing in new oil development. Second Big Oil may stop investing in new development and not need the tax incentive. The uninformed public will love the slap down of Big Oil and the politicians will garner more misguided support. Profits to Big Union retirement funds will go unchanged as Big Oil fears having to tell the teamsters they won’t get any profits. Big Government won’t see any increased revenue if Big Oil decides not to invest in new oil drilling. Big Government will see 2 billion a year in increased revenue if Big Oil increases prices. 2 Billion a year transferred from poor working dogs to the Federal Government gee those Big Oil guys make good tax collectors. 2 Billion now that won’t amount to a butterfly wing flap in a hurricane but the slap down of Big Oil is what counts and after all one must show we are trying to curb our 14 trillion debt and 100 trillion in unfunded welfare entitlements. Yep after the 2 billion dollar slap down of Big Oil we can run on that. And what if some in government choose to keep the Big Oil deduction on investment costs to aid in new development and the misguided envy card is not allowed. Well then we can run on “it is Big Oil and its cronies in government” that are keeping us from confronting our debt and destroying our children’s future. If one steps back and looks at our energy issues it could be concluded that new development of Oil reserves may be a good thing at this point in our history. I myself would put military forces (or a CCC setup for those currently being paid not to work) to work helping build new oil fields and pipelines, but that’s just me. Our problems are deep and systemic. Political gamesmanship mixed with rancor, envy and bigotry may have served the “Parties” in the past but today we have rather big fish to fry. The world is seeking another currency to base value on rather than the unstable dollar. Our bond rating is under stress. Our grand children will owe foreign banks trillions before they even begin to work or vote, this is our doing and our folly. Our leaders have us wallowing in petty politics of deflection and rancor that divides us more and more. Each camp fearful of the bounds set up by unreasonable public discourse. If a Nation ever needed divine intervention it would be ours. I fear the fear of change will win out, God help us all.
Some seem to be confused about business taxation. Deflection and deception by some politicians adds to the confusion. Business taxes are regressive government taxes on consumers. Business taxes as a cost of doing business are an expense no different than a utility bill, wages, plant or equipment. Any taxes, like utility bills, are passed on to the consumer and the poor are punished the most by this regressive government taxation practice. It is sold by saying “fat cat businesses” must pay their share and many (including some poor) buy into the propaganda.
When a business pays its employees, the heavy taxes of almost 50% each employee pays must be considered by the employer. Pay to ensure good employee moral. An example would be $12 an hour (governments take about $6 per hour) leaving an employee with $6 an hour. This is a hard thing for business to deal with as the regressive personal taxes paid by the working poor have made life unbearable for many workers. It is not in any businesses interests to have cash strapped employees with personal problems. All regressive taxes (sales, fees, property, consumer, excise, FICA, etc.) must be means tested. As business taxes are inherently regressive they must go. Do not fear progressives those humans who profit from business will still pay.
Some think a tax break for business is welfare. When a local government gives a $10,000 property tax break to entice business activity, it can be looked at as a $10,000 loss by public workers or others vested in the government. Some then attack the tax break as they can only see “their” largess being eroded. This combined with buying into “the evil business propaganda” makes the rancor understandable but bigoted. The reality is if a business takes advantage of the property tax break and the business employs 50 people the tax increase for local coffers would be about $100,000 whether the employees rent or own a home. The $100,000 coming from business income paid to workers, the business is still paying property taxes via employees. Some still can’t see the obvious positive outcome (more jobs and taxes) of business incentive let alone private worker incentive; I guess some have never needed to. Politicians know business taxes are regressive and stifle employment but to hold the faithful they still attack the engine of our American success and many buy into it. The true reason for Business taxes is to hide the real cost of government paid by the worker. The politicians who create such stealth taxes are not necessarily good people, but hey they are politicians who know how to buy votes.
Businesses are not people!!! They do not nor have they ever paid a dime in taxes!!! They are entities that simply employ people who do pay their personal taxes and they collect regressive taxes on behalf of the governments. If all business taxes were the same everywhere in our nation and throughout the world the amount of business taxation would be irrelevant. However their regressive nature would still hurt the poor the most. Business success depends on a fair and even playing field; we all have an interest in this. The rancor and bigotry against the group called “Business” is wrong, as wrong as it would be against any group. All groups have bad apples; we need to get off the bigotry stuff so we can think. I do concede bigotry and propaganda against business “works” in making political hay and getting votes, I just wish some could see past it.