Class Warfare is alive and well in the Obama Camp
August 1, 2008

MassNews Editor

Friday, August 1st, Barack Obama announced that he intended on seizing “excess” profits from oil companies to give families in the form of $1000 checks per family.

Granted, the oil companies did make a tremendous profit this year. Obama, who has never held a job in the private sector, probably thinks that profits from oil corporations are stuffed into pillow cases and squeezed into the closets filled with other ill-gotten gain by evil Texas oil tycoons. He pictures them snickering, as they stuff it all in, reaching for more pillowcases, being careful not to inadvertently grab their Ku Klux Klan sheets that they sport at their monthly meetings.

If he had any inkling of how a publicly traded business works in the free world, he might realize that there are no “excess profits” in a corporation. Businesses exist to make a profit. They have no other reason for being. Once they have covered their operating costs, a corporation pays taxes on their profits. Literally billions of tax revenue is going to the Federal government this quarter because the oil companies made money. After the taxes, profits are paid out to the shareholders. And that is not just “typical” rich white people who receive the dividends. That is normal people. Those with money in the stock market, and even 401Ks at their place of employment. Average people see their 401K grow when a corporation has “excess” profits.

Keep in mind too that individuals above a certain income level pay taxes on those dividends they receive. The profits were already taxed once, and now they are taxed again.

And when all the taxes and shareholders are paid, whatever is left over is used to assure the oil company will still be profitable in the future, which in this case, would mean research and development on alternative fuels, and investing in that which would lower their operating costs in the future.

However, Barack Obama wants to forcibly seize profits from the oil companies. It is impossible to tell what that would do to the stock market when the government could arbitrarily, with no legal jurisprudence, seize the profits or assets from any corporation because they want to redistribute the wealth. I am not sure why no one has pointed out that this is the cornerstone of Communism.

However, this works for Obama. As long as it is the evil rich people getting pillaged by the downtrodden underclass, it will play well on election day. It worked well for a time for Karl Marx. It just has to work for Obama through November.



 




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