Let's Get This Straight
By Jim Bauer
@porwest (94568)
United States
November 1, 2022 8:26am CST
It never ceases to amaze me how out of touch with reality politicians can be. Let's take Biden, for example, on this one.
He wants oil companies to work to bring down gas prices. The problem is, can they? I mean, it's about supply and demand. It's about transport costs to get the oil from across the globe into U.S. refineries.
The price at the pump is not something necessarily dictated by the oil companies. It is something dictated by the oil cartels and OPEC and the overall market, and all the costs associated with making oil into gas and diesel.
I mention all of this because Biden is threatening that if the oil companies don't "work" to bring down gas prices, he will raise their taxes.
Folks, I have said this too many times to count, but I want to say it again so that it hits home and sticks to the brain, because it is a very important thing to fully understand about taxes corporations pay.
Corporations DO NOT PAY TAXES, even if they WRITE THE CHECK TO THE IRS. Corporations COLLECT TAXES FROM YOU AND I WHEN THEY SELL US THEIR STUFF!
The tax bill is a business expense just like labor costs, raw materials and keeping the lights on are. Every single expense the company incurs goes into the price of every single thing they sell because a corporation sets its margins according to their desired profit.
If they want to make a 10% margin, they are going to make a 10% margin, and if the tax bill reduces that margin, they will raise the price on everything they sell to meet that margin.
It is not rocket science.
Beyond that, it is worth noting that the one man who has the power today to effectively lower gas prices is none other than Joe Biden himself who can return to energy policy that allows for the United States to drill our own oil.
That's not rocket science either.
If Biden is trying to stick it to the oil companies, joke's on us. Because we will pay more for gas because of it.
3 people like this
3 responses
@Nakitakona (56484)
• Philippines
22 Dec 22
Our government during the time of infamous President Ferdinand Marcos did lower the gas prices though they're too high in the world market. What he did the government subsidized them.
1 person likes this
@Nakitakona (56484)
• Philippines
24 Dec 22
@porwest Are they not doing that? No plan yet. I believe it's already in the planning board.
1 person likes this
@porwest (94568)
• United States
25 Dec 22
@Nakitakona We WERE doing that. When TRUMP was in office. When Biden took the reigns he cancelled nearly all of it and now we're back to $4 gas and gave all the power back to the oil cartels. Thanks Biden.
1 person likes this
@moffittjc (122112)
• Gainesville, Florida
3 Nov 22
He clearly doesn’t understand how our economy works and how free market forces dictate supply and demand and pricing. You are 100% correct that these oil companies will pass on any tax increases to the consumer.
People are complaining that oil companies are making record profits right now while the average joe suffers. I think it’s great they are making record profits, not just because it helps my investment accounts, but also because they invest those profits back into the economy in the form of research and development to come up with better and more efficient methods of producing oil/gas, as well as investing in future new forms of fuel and energy. It’s those profits and R&D that drive future innovation.
1 person likes this
@porwest (94568)
• United States
5 Nov 22
That is the side of things the democrats always ignore. Record profits anywhere in the economy means more people's 401ks get filled with more money. Businesses expand and hire more people. They add to wages and benefits. And all the while the government collects more taxes due to more people with jobs making more money adding to income withholding, taxes on proceeds from investments, more taxes from those windfall profits collected, and of course people spending their money and adding to the sales tax rolls.
Those profits do not just sit there. They get reinvested into the business and reinvested into the economy.
I actually suspect they do know this. But to admit any of that would go against their desired narrative of the greedy 1% hoarding all the money and exploiting anyone else in their path while they make it.
1 person likes this
@moffittjc (122112)
• Gainesville, Florida
6 Nov 22
@porwest Yeah, they're not stupid, they know that record profits are incredibly good for the country. But they will never admit it.
I was thinking about the Powerball lottery, and who the big winner would really be once someone finally wins the jackpot. Besides the actual ticket winner themselves, the federal government stands to be a big winner as well, raking in close to $340 million dollars. That would certainly buy a few missiles to send over to Ukraine! haha
1 person likes this
@porwest (94568)
• United States
31 Oct 23
@moffittjc Looks like they found the money anyway. lol
1 person likes this
@BearArtistLady (6036)
• United States
1 Nov 22
Of course, no matter, we will pay more not only for gas, but other oil products! I don't know if you caught the blurb on the computer about Biden and his thing about Asian Americans...it scares the daylights out of me. I'm surprised that someone hasn't pulled a "Kennedy" on him.
1 person likes this
