"Tax those big oil companies, they got all the money anyhow!"
First, I'm a cynic when it comes to politics, not a conservative or a liberal and I drink coffee. I don't think anyone in Washington DC has my best interests at heart and I don't think any of the people involved in the discussions about national debt have very much sense (if they do, they are not telling the truth about the economy, debt, taxes and the budget.)
But I'm tired of hearing people say that we should just tax big business because they can afford to pay the national debt. They're not paying their fair share, so sock it to them and make them pay.
Let's put this in the simplest terms. Let's suppose that the national debt could be paid in full by forcing Apple to pay a $50 tax on each IPod, IPad or IPhone they sell from now on. Let's make Apple pay. They've got lots of money. That's their fair share.
What happens next? Do you think it would take Steve Jobs more than 4 minutes to raise the price of the IPad, IPhone and IPod by $63? Who ends up paying the $50 tax? The consumer (that's you and me) who buys these products.
For those of us who work and get a paycheck, taxes are taken out before the check is written, and we settle up every April by paying a little more or getting a little back. This is not how it works with business. For a business, taxes are an expense that can be anticipated, calculated and added into the profit/loss equation just like utility bills, payroll expenses or insurance. The higher the taxes, the higher the prices.
The higher the taxes, the higher the prices.
We all pay income taxes. But we also pay businesses' taxes all the time. When you buy a gallon of milk, part of the price you pay for that milk is the taxes that will be owed by the dairy, the grocer, the truck driver that delivered it to the store, the company that manufactured the plastic bottle, the insurance company who insures the cows, and a hundred other businesses. Businesses don't pay taxes! Customers pay taxes!
Businesses don't pay taxes! Customers pay taxes!
All business taxes work this way. Fees too. And even fines imposed by the government for doing things wrong.
Congratulations! Not only are you paying a zillion businesses' income taxes, you're also paying their property taxes, workers comp insurance premiums, unemployment premiums and a shitload of other fees, fines, assessments, contributions and taxes. And you're paying it through higher prices - every single time you buy something.
So, how much should we tax those money grabbing oil companies?
It's an easy question. The answer is,
How much more do you want to pay for a gallon of gas?