We've been down this road before folks and the left/right, he said/she said blame game will only get this thread KO'd....and will not help one iota in either understanding or solving the financial problems we face in the US.
Once again, I ask.....as the originator of this thread.....please keep it to the topic of corporate taxes and more specifically, corporations who make large profits and pay little or no corporate income taxes in the US.
There's a lot to discuss on this topic alone.
Here's one perspective from the Alaska oil industry. Thanks to Sarah Palin, state taxes on Alaska's oil industry increased dramatically when she was governor. Since that time, productive investments in Alaska's oil fields have dropped (despite high oil prices and increases in investments elsewhere in the US and the world), Alaska oil industry employment is down, production through the Trans-Alaska pipeline continues to fall and the risk of a shutdown of the pipeline increases year by year. There's a good case to be made for lower (still quite high, but lower) state taxes on the industry, if Alaska wants to see continuing investment in this state. I don't think the oil industry really needs to resort to deceptive statistics to make it's case and yet, it continues to throw out numbers that indicate/claim the oil industry is paying a full 35% of profits in federal taxes on Alaska oil production. Given the numerous federal tax credits and benefits associated with oil production in this country.....I find this very hard to believe. This is indicative of the way in which corporations (and people, for that matter) attempt to confuse the public by claiming their actual tax burden (based on their effective tax rate after credits, deductions etc) is the same as the statutory (or highest marginal) tax rate. It's no wonder that many Alaskan's distrust the oil companies (or corporations in general). Unfortunately, that distrust is likely to continue a state tax policy which will lead to the continued and unnecessary decline of oil investment in this state.
<Slightly Off topic comment> The biggest impediments to "drill baby, drill" in Alaska aren't any environmental restrictions or policies from the Obama administration, contrary to Sarah Palin's claims (the oil company I work for isn't complaining about those at all), it's the tax policies that Gov. Palin pushed thru the Alaska legislature which may, eventually, kill the golden goose of oil development here in Alaska.....which provides approximately 90% of the state's general fund revenues.
Gary
