DanD

Obama Wants to 'Robin Hood' Exxon

I suppose we ought to tax the Milk Producers because it's approaching $4 a gallon. Heck, corn used to be 10 ears for a buck. Those farmers must know something we don't know. I don't trust 'em any farther than I can throw 'em. Got Milk?

Obama Wants to 'Robin Hood' Exxon

I'm not crazy about fuel prices increasing by about 33% in the past year either. I was bankrupt and nearly foreclosed in recent years. I own my part in those events, but I also know what it's like to watch the cash balance hover around zero. By the way, the near foreclosure happened while I was employed by an energy company. And not because the company didn't pay me. There were other circumstances. We all have them. Circumstances.

But taxing certain groups simply based on a very large number ($55B) is not equitable either. Don't forget that 55 is 10% of 550. Therefore 495 was spent (invested) to earn 55. Yes, I'm talking billions here.

Let's not forget a couple of other "truths". Those of us that read financial articles are probably investing in some sort of fund (for retirement, perhaps). Historically, the stock market has returned from 10-12% per year for almost a century (some up, some down). So we have an individual expectation of seeing that in our own portfolios depending on risk tolerance, age, etc. Don't we? So if we are going to tax profits greater than 10%, then maybe we all should be taxed for returns greater than 10%. Fair is fair, after all. How many of us would change our investing strategies if that were to happen? What impact would that have on the economy?

Finally, many years ago, I managed a restaurant. After labor, food, taxes, depreciation, admin, utilities, (you get the idea) guess what my net profit percent was? About 10%. Is 10% greedy? No. Arguably, 10% is necessary to stay in business. This same analogy can be applied to most retail and service oriented businesses (Mom and Pop). Perhaps you or someone close to you is struggling to make 10% so you/they can pay their bills, send kids to school, and save enough so they don't outlive their savings. Let's tax Mom and Pop, too because they are savvy enough to earn more than 10%. Shall we? If they have a "bumper crop" now and then, let's take some of that from them.

A profit tax is not the answer. I don't know what is, but since this problem touches us all, maybe the answer lies in individual and personal responsibility toward finding the solution rather than pointing fingers at "someone" who is trying to make 10% just like the rest of us. It's real easy to get on the "big bad business bandwagon". But, if you put a limit on what someone can earn, you will limit productivity. Won't you?