Taxes as costs are value added along the line of purchase of materials and rightly considered as costs, along with the state and county taxes on utilities. However, tax on profits is a horse of a different color. The current windfall of profit in oil, not widgets, is astronomical. Oil companies should give back some of it.

heh, if you think they'd up it an equal amount you're giving them more credit than they deserve. They'd use the tax as an excuse to raise the price and then double it to make even more profit.

"However, tax on profits is a horse of a different color"

No it isn't. They make x amount of profit today. You raise the taxes, making their profit x - t. They simply raise their price and make the equation (x + 2t) - t. Unless you increment t in such a draconian way that all profits are fixed at a given percent, they can always capitalize on your abuse. Sure they pay a bit more in taxes, but they aren't paying it, we are, and they are making more profit as an exuse.

"The current windfall of profit in oil, not widgets, is astronomical. Oil companies should give back some of it."

You think they don't already pay taxes on their profits? What gives you that idea. You don't want "some" you want "more", which would just make them want to take more from us. In the end, you want "more" from us, the people who are suffering to begin with.

Gideon, you started out strong, and then tripped at the finish line. Here is why.

YOu sell your widgets for 50 cents, and then the government heaps on a 20 cent tax.  Ok, if it is a fair tax, and every widget maker has to pay it, then the solution is simple!  Every widget maker raises their price by 20 cents and the poor get stiffed again (the rich can afford 70 cent widgets).

Ok, say that there are widgets and wudgets.  Almost interchangeable.  The government zaps Widgets and not wudgets.  What happens then?

Well, since you were competitive before, now wudgets are underselling you, and you are out of business!

Or there are American Widgets and French Widgets.  The Government taxes American widgets.  Gues what?  French widgets are cheaper and sold at WalMart.  American Widget Manufacturers go out of Business.

Finally, lets look at a tax on Profits!  Since this is not a socialist state, you have to pass a law.  SO you pass a law to over tax profits on petroleum widgets.

Sorry, Pa Walton's makiing home made widgets just went under as you just zapped him too.

But wait, you pass an exemption for small businesses.  Pa Walton is back in business.  So is Exxon as they now subdivide their operations and make sure they do not make any profit from widgets.  They break even.  But they do make a lot of money from the oil that goes into those widgets!  Even at Pa Waltons expense!

Bottom line, there is no such thing as a tax on Business.  They will always find a way to pass it on to consumers.  The only way to stick it to business is to nationalize them.  The way Communist, Socialist and National Socialist do. (Nazi for you hard of spelling).

Then what happens?  The government runs them into the ground as the profit motive is destroyed, along with the quality.

AGREED

Taxing oil companies like this will not work. Big oil might be an oligopoly , but it is still an open market.
They are going to have to find another way to help people pay for home heating. How about the home owner pay less taxes?
lol

Dr. Guy,

Thanks for the assist. I'll readily attest to the fact that I am NO economist, but the fact that I can see at least part of the big picture despite my inadequacies in fully understanding the complexities of economics tells me that it should be pretty obvious to most anyone who cares to take a "closer look".

Thanks for the assist. I'll readily attest to the fact that I am NO economist, but the fact that I can see at least part of the big picture despite my inadequacies in fully understanding the complexities of economics tells me that it should be pretty obvious to most anyone who cares to take a "closer look".

You see very well!  Unfortunately, I am an economist (I just love the subject, I did not start out to get a degree in it).

My Mentors are Walter E. Williams and Harold Rapp (my Econ Teacher in College).