Record Taxes

Much has been made about Exxon's "record profits", but no media focused on their "record taxes"--Exxon paid three times in taxes what they earned in profits.

Why is this relevant? In a few hours Governor Rendell will propose that we need to tax Exxon (and other oil companies) even more, because apparently state Government deserves a greater share of their earnings. His plan will be to use this money to fund public transit. Apparently only "evil" oil companies deserve more government plundering, but ethanol companies deserve state subsidies.

Of course Governor Rendell believes gas prices are entirely driven by oil companies--which is why they lowered gas prices before the election to help Republicans, only to raise them afterwards ... wait, you mean to tell me that didn't happen? Rendellconomics isn't supported by fact?

For more reading on the subject, read Matt Brouillette's Commentary on why windfall profits tax are a bad idea.

Also check out my Commentary on why we need a "windfall profits" tax ... when government takes too much of our money.