Meta Blog Posted December 13, 2005 Report Share Posted December 13, 2005 America's oil companies have earned every penny of their profits. By Alex Epstein Politicians and pundits claim that oil companies' recent quarter of higher profits is mostly a "windfall"--which should be "given back" to society via a proposed $20 billion tax. As Representative Dennis Kucinich and others say, they seek "to tax only excess profits, leaving . . . reasonable profits unaffected." Such taxation is justified because the recent low supply and high demand that led to higher profits, explains economist Dean Baker, "is kind of [the oil companies'] good luck. They didn't do anything to earn it." But America's oil companies have earned every penny of their profits. To characterize any portion of them as an unearned "windfall"--like manna dropped from heaven--is a vicious smear. It is to evade what is truly responsible for their profits this and every quarter: the great value they create and the tremendous thought,... http://ObjectivismOnline.com/blog/archives/000514.html Quote Link to comment Share on other sites More sharing options...
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