Taxing Thoughts

Some thoughts to keep in mind the next time you fill up your gas tank at almost $3.50 per gallon. The first comes from the Mayor (no - not this mayor.....a real mayor!)

Bill Dunkelberg, a professor of economics at Temple University and former dean of the Fox school of business there, periodically issues random thoughts on public policy as it relates to his arena of academic interest. His April 24 “Notes on the Economy” includes this gem regarding that Great Economic Satan, Exxon Mobil:
Some presidential candidates have decided that Exxon is a symbol of what is wrong with America. Recent ads complain of Exxon’s 40 billion in profits as if Exxon is some evil entity. First of all, Exxon is not a person, it is millions of owners owning over 5 billion shares in their investment portfolios. Vanguard holds over 160 million shares for its clients, Fidelity over 100 million shares. Taking Exxon’s profits for hair-brained government schemes will just mean millions of people will have to work longer to accumulate their retirement assets. And, doesn’t return on investment count? 40 billion may not represent a particularly good return on the capital invested in the company. Size is not the issue, the percentage return is what counts.
And the government takes over 40 cents a gallon in tax, far more than the profit per gallon made by refiners. And the government doesn’t make any gas for you.

That is something that the voters really need to take into account this November. Especially in light of the fact that by then Minnesotans will be paying another 7 cents a gallon in state sales tax thanks to this year's transportation bill.

Speaking of which, the House Republican caucus is taking out a new ad that is designed to remind voters just who is responsible for the increase.



Now I know some will say (as one caller to Jason Lewis' porogram said yesterday) that the Democrats did have some bi-partisan support in this, but hear me out. As Speaker Siefert has pointed out many times, there are 85 members in the majority. If there were not 85 members in the majority, the 6 defectors would not have made a difference! Also, the Republican Party in the districts that the 6 defectors belong to have (for the most part) given the defectors their reward....by denying them endorsement at the BPOU Conventions. They have "paid" for their votes...now it is time for the 85 to face the music and THAT is what this ad is all about.

The bottom line is that the 85 members of the majority pushed through a sales and gas tax bill that hurts the poor and those of fixed incomes THE HARDEST! The very people that they claim to want to help are the once that are suffering the most as a result of the transportation bill. It is time for the voters in this state to let the legislature know how they feel about it.