Since When is Profit a Bad Thing?
I'm so sick of all the complaining about the oil companies making money. Read and learn...
I drive nearly 100 miles a day to and from work. So these gas prices are a real problem for me. And I'm going to tell you, that neither party is doing much to help the problem. The democrats are vilifying the oil companies and the republicans seem to be standing around with their heads up their posterior orifice.
I'm not here to defend the oil companies. But I am here to combat liberalism. I can tell you this, liberalism is not going to solve this problem. The democrats, and many Americans are complaining about the profits the oil companies are making while we are paying $3 per gallon. I do hate paying $3 per gallon as I use about 4 gallons per day. But I'm not going to complain about the profits of a company that is providing me with something that I need. You know why? Because that is capitalism. Supply and demand. I demand it, they supply it. If they don't make profits, they won't be around to sell me what I need. If the oil companies don't make profits, they go out of business. If they go out of business, there will be less of a supply to meet the demand. When that happens, the price will really go up. We'll be praying for $3 per gallon. It's not rocket science.
Now, the democrat solution is to punish the oil companies with an additional winfall tax. The dems want to make the oil companies pay even more taxes than they already pay. As if profit should be limited. Why on earth would you want to limit a company's profits? Unless you're a socialist...
What may shock you is that according to an industry wide study, the Oil companies make about 9 cents per gallon in profit. 9 cents. Want to know what the government makes on a gallon of gas? Federal excise tax on gas is 18.4 cents. The national average for state excise tax is 20 cents but in PA it's 31 cents. For the sake of argument, we'll round the total excise tax, federal and state, at 40 cents per gallon. I won't even include the sales taxes that are collected on every gallon of gas which on average is 5%. Oh, and don't forget about the taxes the oil companies pay on what profit they do make. But I'll leave that out of the equation as well.
So out of that $3 per gallon, the oil companies get about 9 cents and the state and federal governments take in a minimum of 40 cents. Please tell me how in the world anyone in government can complain about what the oil companies are making? Government takes in over 4 times the profit and they do nothing but restrict what the oil companies can do. And those on the left want to call the oil companies evil? Seems to me, the government is 4 times as evil as the oil companies.
Think about this. The government does nothing to produce gasoline. They do nothing to distribute gasoline. They do nothing to find the oil that the gasoline is made from. The do nothing to get the oil the gasoline is made from. All government does in the regards to gasoline is regulate it. They have no investment in gasoline whatsoever and yet they take in 40 cents on every gallon of gas. Somehow, that just doesn't seem fair to me. The oil companies are more regulated by government than any other industry. If you consider all the drilling restrictions, refining restrictions, regulations for gas stations, it's quite mind boggling. The EPA restrictions, not only for gas stations themselves, but for drilling, refining and transporting, are enough to make you nuts. It's a wonder the oil companies make any money at all. 40 cents to the government compared to 9 cents to the oil companies, and it's the oil companies that are bad? I don't think so.
Need proof of the democrat position on the oil companies? How about this transcript between Neil Cavuto of Fox News and Senator Dick "The Turban" Durbin. Read some of this...
CAVUTO: Senator, do you know how much, out of curiosity, is built into a gallon of gasoline, the profits of the oil companies? Do you know what's the average?
DURBIN: Well, let me see. ExxonMobil, what did they make in three months? It was $10 billion, if I'm not mistaken, the largest corporate profits in the history of the United States.
-So if the oil companies took in $10 Billion in profit, the government took in over $40 Billion, remember that.
CAVUTO: Maybe you could answer my question. It's about 9 cents. Do you know how much taxes are, Senator? About 50 cents.
DURBIN: Let me tell you....
(CROSSTALK)
CAVUTO: So, don't you think you should be more focused on the tax-gouging than necessarily the profit-gouging?
DURBIN: How do you explain their profits after taxes? You're ignoring that, Neil. You don't want to talk about it.
-Profits after taxes? Any money after taxes is profit you freaking idiot. He can't help but show his ignorance.
CAVUTO: Are you ignoring the taxes? Senator, I'm asking you simply, are you ignoring the taxes? Would you roll back those taxes?
DURBIN: No. I'm telling you the taxes pay for the roads that we use.
CAVUTO: Would you roll back those taxes?
DURBIN: No. Let me tell you, you look at the traffic congestion in America and the need for mass transit, you want to cut the source of funding to deal with that congestion? You're wrong. We have got to have taxation of users of our roads, in order to keep them safe and to keep them modern and to build mass transit. Neil, you can't walk away from that.
CAVUTO: So, $50 cents a gallon, the taxes are OK? The 9 cent profit, that's not OK?
DURBIN: Oh, stop the 9 cents.
Yeah, stop with the 9 cents because you can't beat that argument you freaking communist.
Bottom line, the government is way more complicit in the problem of high gas prices than the oil companies. And this notion that companies that make huge profits are inherently evil is a socialist notion. It's class warfare. It's right out of the Karl Marx playbook. That is not what this country is all about. This country is about freedom and capitalism. The left constantly complain about the rich. They constantly talk about bringing an end to poverty. And they believe that the cure for poverty is what Karl Marx believed. "From each according to his means, to each according to his needs." Take from the rich, give to the poor. Sorry, that's un-American. What they, and the rest of the country, needs to realize is wealth is the only cure for poverty. The only way to destroy poverty is to create wealth. And while we may be the richest country in the world, until we rid ourselves of this leftist notion that wealth is bad, we will never bring an end to poverty.
I drive nearly 100 miles a day to and from work. So these gas prices are a real problem for me. And I'm going to tell you, that neither party is doing much to help the problem. The democrats are vilifying the oil companies and the republicans seem to be standing around with their heads up their posterior orifice.
I'm not here to defend the oil companies. But I am here to combat liberalism. I can tell you this, liberalism is not going to solve this problem. The democrats, and many Americans are complaining about the profits the oil companies are making while we are paying $3 per gallon. I do hate paying $3 per gallon as I use about 4 gallons per day. But I'm not going to complain about the profits of a company that is providing me with something that I need. You know why? Because that is capitalism. Supply and demand. I demand it, they supply it. If they don't make profits, they won't be around to sell me what I need. If the oil companies don't make profits, they go out of business. If they go out of business, there will be less of a supply to meet the demand. When that happens, the price will really go up. We'll be praying for $3 per gallon. It's not rocket science.
Now, the democrat solution is to punish the oil companies with an additional winfall tax. The dems want to make the oil companies pay even more taxes than they already pay. As if profit should be limited. Why on earth would you want to limit a company's profits? Unless you're a socialist...
What may shock you is that according to an industry wide study, the Oil companies make about 9 cents per gallon in profit. 9 cents. Want to know what the government makes on a gallon of gas? Federal excise tax on gas is 18.4 cents. The national average for state excise tax is 20 cents but in PA it's 31 cents. For the sake of argument, we'll round the total excise tax, federal and state, at 40 cents per gallon. I won't even include the sales taxes that are collected on every gallon of gas which on average is 5%. Oh, and don't forget about the taxes the oil companies pay on what profit they do make. But I'll leave that out of the equation as well.
So out of that $3 per gallon, the oil companies get about 9 cents and the state and federal governments take in a minimum of 40 cents. Please tell me how in the world anyone in government can complain about what the oil companies are making? Government takes in over 4 times the profit and they do nothing but restrict what the oil companies can do. And those on the left want to call the oil companies evil? Seems to me, the government is 4 times as evil as the oil companies.
Think about this. The government does nothing to produce gasoline. They do nothing to distribute gasoline. They do nothing to find the oil that the gasoline is made from. The do nothing to get the oil the gasoline is made from. All government does in the regards to gasoline is regulate it. They have no investment in gasoline whatsoever and yet they take in 40 cents on every gallon of gas. Somehow, that just doesn't seem fair to me. The oil companies are more regulated by government than any other industry. If you consider all the drilling restrictions, refining restrictions, regulations for gas stations, it's quite mind boggling. The EPA restrictions, not only for gas stations themselves, but for drilling, refining and transporting, are enough to make you nuts. It's a wonder the oil companies make any money at all. 40 cents to the government compared to 9 cents to the oil companies, and it's the oil companies that are bad? I don't think so.
Need proof of the democrat position on the oil companies? How about this transcript between Neil Cavuto of Fox News and Senator Dick "The Turban" Durbin. Read some of this...
CAVUTO: Senator, do you know how much, out of curiosity, is built into a gallon of gasoline, the profits of the oil companies? Do you know what's the average?
DURBIN: Well, let me see. ExxonMobil, what did they make in three months? It was $10 billion, if I'm not mistaken, the largest corporate profits in the history of the United States.
-So if the oil companies took in $10 Billion in profit, the government took in over $40 Billion, remember that.
CAVUTO: Maybe you could answer my question. It's about 9 cents. Do you know how much taxes are, Senator? About 50 cents.
DURBIN: Let me tell you....
(CROSSTALK)
CAVUTO: So, don't you think you should be more focused on the tax-gouging than necessarily the profit-gouging?
DURBIN: How do you explain their profits after taxes? You're ignoring that, Neil. You don't want to talk about it.
-Profits after taxes? Any money after taxes is profit you freaking idiot. He can't help but show his ignorance.
CAVUTO: Are you ignoring the taxes? Senator, I'm asking you simply, are you ignoring the taxes? Would you roll back those taxes?
DURBIN: No. I'm telling you the taxes pay for the roads that we use.
CAVUTO: Would you roll back those taxes?
DURBIN: No. Let me tell you, you look at the traffic congestion in America and the need for mass transit, you want to cut the source of funding to deal with that congestion? You're wrong. We have got to have taxation of users of our roads, in order to keep them safe and to keep them modern and to build mass transit. Neil, you can't walk away from that.
CAVUTO: So, $50 cents a gallon, the taxes are OK? The 9 cent profit, that's not OK?
DURBIN: Oh, stop the 9 cents.
Yeah, stop with the 9 cents because you can't beat that argument you freaking communist.
Bottom line, the government is way more complicit in the problem of high gas prices than the oil companies. And this notion that companies that make huge profits are inherently evil is a socialist notion. It's class warfare. It's right out of the Karl Marx playbook. That is not what this country is all about. This country is about freedom and capitalism. The left constantly complain about the rich. They constantly talk about bringing an end to poverty. And they believe that the cure for poverty is what Karl Marx believed. "From each according to his means, to each according to his needs." Take from the rich, give to the poor. Sorry, that's un-American. What they, and the rest of the country, needs to realize is wealth is the only cure for poverty. The only way to destroy poverty is to create wealth. And while we may be the richest country in the world, until we rid ourselves of this leftist notion that wealth is bad, we will never bring an end to poverty.
