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Those Eeeeeeevil Oil Companies
Once again the Divider-in-Chief is trying to slip in another tax increase while focusing hatred away from the government by attacking a convenient opponent–oil companies. He cites their “obscene” recent profits while pushing for a quadrupling of his new tax just passed in January on stock buybacks. As usual, he is taking advantage of economic illiteracy of much of the public to hit 401k’s, the poor, and middle class–all while increasing the coffers of his Ruling Class buddies. Stock buybacks are simply a way to distribute profits to shareholders by increasing Earnings Per Share (and therefore the stock price) as opposed to cash dividends. Whether it’s dividend taxes or capital gains taxes, the shareholders pay either way. The difference is that it gives companies financial flexibility to manage the stability of the balance sheet and protect the regular cash dividends that millions of Americans (most notably retirees) depend.
Notice also that his attacks are always on politically advantageous opponents rather than BY FAR the biggest examples of “obscene” profits and stock buybacks–Big Tech! Exxon and Chevron put together are about 1/3 the size of Apple. The profits & buybacks of all the oil companies combined the past 10 years are a tiny fraction of that in any of the top tech companies–Apple, Microsoft, and Google. Have you ever in your life heard Biden attack these companies? Why? Obviously, they are joined at the hip with the Democrat party, while oil companies generally lean right and provide an easy target to misdirect government hatred.
In the end, government interference & tax increases will do what they always do–create more inefficiences in the market while creating unintended consequences, as citizens & corporations simply adjust their behavior to get around the latest stupid change.
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