More Taxes, Cheaper Gas...NOT!!!

Discussion in 'Politics' started by Hobbit, Apr 24, 2006.

  1. Hobbit
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    Hobbit Senior Member

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    http://boortz.com/nuze/index.html

    Note that this link was valid at the time that this was posted, but will be different the morning after. The article has been posted in its entirity.

    Yep, that's right, they're talking about taxing 'windfall' profits because corporations are evil. The truth is that the profit margin of gas companies is at an all time low, and any tax levied agains them will only further drive up gas prices. Insufferable!!
     
  2. archangel
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    archangel Guest

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    oil company profits are not at a all time low...some 35 billion for the quarter..and yes taxing windfall profits would definetly not help the end consumer...so I suggest federal gas tax be abolished and we should give N/Iraq back to Turkey if they would agree to sell us oil at $50.00 per barrel! Hey I want to see something back for tax dollars blood sweat and tears ...The Middle East conflicts are bankrupting our treasury...wake up boys and girls!
     
  3. Hobbit
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    Hobbit Senior Member

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    :bang3: :bang3: :bang3:

    Read the one bolded word in my post. Then read it again. One more time, just for clarity. Now, I did not say profits were at an all time low. I said that the profit MARGIN was at an all time low. And here it is again, folks, the quality government education that never bothers to explain the difference between the profit and the profit margin. It makes it so much easier to turn the populace against corporations so they can tax you and have you thank them for the favor. Now, if you want an example of what I mean, just remember that the profit margin is the percentage generated by dividing the profits by the gross income. In other words, it's the percentage of income that is profit. If my business's gross income is $10, but I spent $5 on my business, my profit is $5, making my profit margin %50. If my business made $1000, but I spent $990 on it, then I made $10 in profit, twice what the other business made, but the margin is a mere %1.

    The fact is that oil profits are up because people are buying more gas. The profit margin, however, is down, since the competitive nature of the open market drives the price down.
     
  4. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    I assume you guys support Curt Weldon's proposal to give us gas tax relief?

    Glad to see there is atleast one real republican in Pennsylvania.
     
  5. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    BTW does anyone have any breakdown on how much is going to each government entity, is the cost of doing business and the profit?
     
  6. archangel
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    No need to yell...your posted link said nothing about oil companies profit MARGIN...it made a general statement about profit vs profit margin...so please if you would post a link about the oil companies profit vs profit margin...thanks in advance! and the above statement open market drives the price down...damn where do you live...gas prices here are doing nothing but going up...up...up! so the profit margin must also be going up...up...up!
     
  7. Hobbit
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    Hobbit Senior Member

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    No, costs are going up, up, up. The people who sell the gas have no control over the price of a barrel of oil, currently $75. Free market drives the cost of gas as low as it can go, which, thanks to limited supply due to a lack of refineries, lack of domestic drilling, and taxes, is not very low. If gas companies could lower their prices without taking a loss, they would.

    And sorry about the big, blaring word. It's just that 9/10 people I meet have the exact same reaction if I say a word about the low profit margins at the gas companies. Apparantly, nobody knows the difference between profits and profit margins.

    As for an additional link, check this out (in the paragraph "Is Being Profitable a Crime?"). Exxon had a profit margin of about 9.9% in the third quarter of 2005. Johnson and Johnson had a profit margin of 18%. Bank of America: 22%. Exxon's profit margin sucks compared to other, comparably sized businesses.
     
  8. manu1959
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    manu1959 Left Coast Isolationist

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    agreed.....since when is making money not the point of being in business...if you don't like the company don't buy what they sell.
     
  9. KarlMarx
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    KarlMarx Senior Member

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  10. Stephanie
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    Stephanie Diamond Member Supporting Member

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    I just bought 100 gls for my tank at my house(no gas stations near by out where I live, so we have gas delivered) 4/17, $2.70 gallon. But we're used to higher gas price's up here in Fairbanks.. But I agree with Hobbit, Specter's idea is STUPID. Tax relief is the only way to go.
     

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