Obama Demands Congress Increase Gas Prices
Obama’s EPA just caused Shell Oil to take a $4 billion hit. Now he wants to increase their tax liability. Speaker John Boehner not wanting to be left out is considering going along with the White House. We know that Obama is against us, is the Speaker looking to join the club?
Why is it that no one in Washington is able to understand that if you increase the cost of production the price will go up? For example; if you are the local baker and you can no longer deduct the electric and gas bills for your bakery, your fixed cost for the year will increase. You must raise your price so you continue to make the same amount of money or accept the cut and take home less money. Chances are good that if you have a spouse at home you will raise your prices.
Major companies work in much the same way. All of their costs are past on the consumer, it is built into the real fixed cost. If you put in place a 50% tax on raw goods, that tax will be built into the price that the consumer pays. Companies do not pay taxes; it is in fact, the end consumer that pays taxes. Unless they want to end income tax and replace it with a flat tax, any tax deduction that is ended or increase of actually rate will be paid by the end consumer not a company.
“Open Letter of Thanks” should bring this point home. From gas to sugar to cotton prices are all on the rise. This is what we have from a weakened dollar. The Federal Reserve Bank of St. Louis has most of the charts to show you what is actually happening, and you can see some of them on our page.
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