Comments: End Subsidy Gifts to Big Oil!

Energy subsidies to alternate energy forms frequently take the form of outright transfers of money from the U. S. Treasury to private corporations that make solar cells, wind turbines, etc. or to utilities purchasing these products. Does "Big Oil" receive any such subsidies as those?

Big Energy (producers of oil, gas, coal, nuclear energy, and distributors of traditional energy products) pays Big Taxes. Frequently, what the left calls "subsidies" are standard tax breaks received by all or most corporations, like depreciation allowances on equipment and buildings or domestic tax deductions for taxes paid to foreign governments. The left wants to single out "Big Energy" for punitive taxation beyond that imposed on other large corporations. Shouldn't "Big Oil" in fairness get tax treatment at least as favorable as Microsoft or Walmart?

Since Big Energy pays Big Taxes, the net flow of revenue to the U. S. Treasury for most producers of traditional energy forms remains positive. They could be considered to be paying for the so-called subsidies from which they benefit. By contrast, most producers of "alternative energy" are engaged in economic activity which makes no sense unless massive government subsidies are in place. For many of these alternate energy producers, the Federal subsidy substantially exceeds the corporation's gross revenue from sales. Such folly obviously should be stopped at once. If alternate energy producers were trimmed to only those "subsidies" that benefit "Big Energy", most if not all of the alternative energy market would dry up and blow away.

The profit from corporations that is transferred to stockholders, or the profit from private businesses that is taken as income by the business owners, is personal income taxed by the Federal government. Is there a clear reason why businesses and corporations should pay any taxes at all, beyond the taxes paid by those who derive income from the businesses and corporations?

Sarah Palin should be looking at the option of repealing all taxes on the private sector other than individual income tax. After all, those corporate taxes are simply being passed on to the consumers of goods and services as higher prices, distorting our markets and unfairly taxing the citizens with lowest incomes disproportionally.

Posted by Kudzuisedible at June 2, 2011 4:03 PM
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