Friday, August 19, 2011
Taxes, corporate welfare and Democratic Party politics of envy
The Democrats in Congress are employing an old trick the politics of envy stoking the flames of class warfare. With the U.S. economy in the toilet, Democrats want to raise taxes and eliminate what they refer to as corporate welfare. Better known as tax code loopholes (which are legal) employed by corporations. What many Americans are ignorant of is even though corporations may on paper pay taxes, in actuality they do not. That is because they pass the tax on in their price structure making the consumer pay the tax on top of a sales tax.
Example: An oil company has an oil well with 100 barrels of oil in the ground. They pump out 50 barrels, sell that oil, and get a profit on those 50 barrels. Now that means that oil well was depleted by 50 barrels, thus depreciating the value of that well. This allows them to claim that deprecation of their taxes, which is the loophole. Or the “corporate welfare decried by them thar Democrats and liberals (news media pundits also).
Eliminate that depreciation allowance for the oil company, then the oil company will pass the cost of that depreciation into the price at the pump causing inflation.
Remember now in December, 2010 President Obama (Democrat) said because of the depressed economy it was not a good time to raise any taxes. Now months later with the economy spiraling downward the President and Democrats are talking taxes. This is knows as speaking out of both sides of their mouths, or they are just a bunch of liars out to destroy further these here United States of America.
Remember in time of war and / or economic stress to vote Democrat is done at the peril of the nation. To Democrats their only loyalty is to the Party and winning the next election, not to the nation.
Posted by Tony aka: PropagandaBuster at 1:27 PM
Labels: Raise taxes on the rich eliminate corporate welfare tax loopholes depreciation allowance DNC Democratic Party President Obama depressed economy debit crises politics of envy class warfare