q: How stupid do liberals think we are?
the reason for this pop quiz is the article I just read concerning how Obama wants to have a 'windfall profit tax' on 'big oil found here. The following is the jist of the article:
The plan would target profit from the biggest oil companies by taxing each barrel of oil costing more than $80, according to a fact sheet on the proposal. The tax would help pay for a $1,000 tax cut for working families, an expansion of the earned- income tax credit and assistance for people who can't afford their energy bills.
``The profits right now are so remarkable that one could trim them 10 percent or so, which would turn out to be somewhere in the $15 billion range,'' said Jason Grumet, an adviser to the Obama campaign.
Every company is entitled to make money. This is why they are in business. Each company has an earnings target. This is why they have investors. If you raise taxes on a company, they raise prices accordingly. The company will make the same amount of money while the rest of us who consume the product will pay a higher price. All liberals will succeed in doing is create a bigger problem. This concept is fundamental economics that liberals do not understand.
Here is a dirty secret liberals don't want you to know: the oil companies make about 10 cents on each gallon, yet fedgov takes about 18 cents per gallon. Who is ripping off the consumers?
Also, the oil companies are earning roughly 7% in profits. this is in line (and in some cases lower) with other industries. The computer industry makes about 12%. will liberals also tax these profits? Fedgov makes about 25%, shouldn't this be reduce this as well?
One more economic lesson for stupid liberals: there are only 2 ways to reduce the price of oil:
- Increase supply
- reduce demand
In conclusion, liberals are actually creating this problem and they do not even realize it. They are stupid.