Here, Now, & Lexington Green
In most industries I do agree this applies. What you tax you get less of, so why would we heavily tax our manufacturers? I do think however there are historical "windfall" industries that profit off of "common wealth"; tax payer subsidized oil being the prime example. Big Oil turned 200B last year in profit on US interests. Do you really think someone wouldn't be willing to pump the same oil for 10B profit? Do you think they'd stop pumping if Uncle Sam quit subsidizing them tomorrow?
Originally Posted by John F Kennedy III
Venezuela levies 50% tax on the oil industry, quota's oil profits to be used on national social programs, yet its 5th in global production, and its production levels are soaring.
I'm a believer that windfall industries that profit off the common wealth are fair game for heavy taxation after initial ROI. When you buy the mineral rights for 400 acres and drop a wellhead down to pull from a pool of oil extending 300,000 acres underground... you're pulling from the common... and profits should benefit the common. Other industries enjoy high profits BECAUSE of government backed monopolies on patents... pharmecuticals being a great example. In that case I wouldn't push for higher taxation I would push for a free market after ROI so competitors could bring price and profit down out of "windfall" mode.
I see no problem with "progressive taxation" of profits in "windfall commonwealth" industries after initial substantiated ROI. To that list I would add:
Pharmecuticals and Healthcare
I'm sure there are more I could come up with.
call me a leftist...
Last edited by presence; 12-06-2012 at 08:28 AM.