Monday, June 1

If we only could tax gov't stupidity not gas companies

Image via Wikipedia
The oil company tax that Doyle has proposed has hit several snags along the way.

The Chicago-Tribune Reports:

[T]he nonpartisan Legislative Fiscal Bureau, have questioned whether Wisconsin can legally or practically stop large oil companies like Exxon and British Petroleum from raising prices at the pump to make up for the state tax.

No other state taxes oil companies and bars them from passing the tax along at the pump, the Fiscal Bureau said.


"It is likely the oil industry will litigate swiftly in the hope that successful litigation would put an end to any efforts by other states to enact similar provisions," the Fiscal Bureau said in a memo for lawmakers.

The tax is a percentage based on revenues of the oil companies, not their profits as Doyle has repeatedly characterized it. Because fuel may be bought and sold several times before it gets to the pump, tracking the costs of each buyer and seller would be difficult, the Fiscal Bureau said.

So this law is not only wrong because of the higher taxes, but legally it appears fishy as well. And if the companies get lower profits in Wisconsin what is going to keep them from just leaving the state? Or at minimum building fewer gas stations or offering fewer services (like free air) with your gas purchase. There is no free lunch and that goes for the government as much as the consumer.

Really, if you hate Exxon Mobil don't buy gas from them. Taxing them will only make your gas purchasing more expensive one way or another. I for one have a bigger contempt for bad and illogical government laws.

1 Comment:

Anonymous said...

If you agree with the U.S Chamber that America is at a crossroads and our leaders in Washington must seriously consider new and innovative policies that promote a better, more confident, prosperous, and secure America in the 21st century, please sign our petition at