Once again the Democrats are forcing the costs of their political aspirations upon us

The Democrats are at it again, trying to buy votes on the wave of financial ignorance fostered by the US sheeple. The Democrat Party has its panties in a bunch that oil companies "raked in record profits" last year. Well, we all know what that means, don't we? It's time to plunder! After all, the only way Democrats can make a career out of their political aspirations is to buy votes from those too stupid or apathetic to be responsible for themselves. So, the Democrat-controlled House passes some $18B in taxes on those profits.

Profits alone don't show the entire financial picture. Of more importance to the big picture are the profit margins. But it's difficult to make myrmidons that vote Democrat understand that. So let me explain:

Profit = gross revenue - business costs

Profit margin = profit/gross revenue * 100%

So, let's have a short exercise, shall we?

Let's say Poxblog Oil Co had gross revenues of $1M in 2007. Poxblog Oil's business costs (what they spent to bring in that megabuck) was $900,000.

2007 profit = $1,000,000 - $900,000 = $100,000

2007 profit margin = $100,000 / $1,000,000 * 100% = 10%

Now, let's say that Poxblog Oil sold twice as much in 2008. That means that their total gross revenue was $2M. Let's also say that it also cost them twice as much to make that revenue, or $1,800,000. That leaves them with $200,000 profit.

Holy shit! Profits have doubled. Time to plunder/levy taxes/buy votes!

But wait. Poxblog's 2008 profit margin is $200,000 / $2,000,000 * 100%, or... wait for it... 10%. Somehow, profits have doubled, but profit margins haven't changed.

2008 profit = $2,000,000 - $1,800,000 = $200,000

2008 profit margin = $200,000 / $2,000,000 * 100% = 10%

From Neal Boortz in 2005:

When they read that oil company profits have gone up they have no educational basis upon which to balance the fact that oil company revenues have also gone up... thanks to the increase in the price of crude oil. Revenues go up. Profits go up. It's not really that hard to understand.

Someone will now come along and point out that the oil company profit margins have been rising along with the profits themselves. They're right. You see, costs don't necessarily double when revenues do. There are some costs that remain fixed even when the prices for raw materials (crude oil) increase. This will mean that profit margins will also increase, though not anywhere near as much as profits themselves. Is this necessarily a bad thing? Hardly. Just where do you think the energy companies, including the oil companies, get the money they need to explore for new sources of oil, to build new refineries, and to conduct research on additional or alternate energy sources? That money comes from profits. If profits increase due to high demand met by a scarcity of product the oil companies will be in a position to use increased profits to expand production and to search for new sources of oil. If the government seizes these profits, as suggested by Hillary Clinton, then those dollars would not be available for energy company investments into expanding our energy resources.

Another source of funds for oil companies to use for exploration and the development of additional energy resources would be the money that comes from investors. These investors purchase shares of stock in oil companies because they believe that their investments will appreciate in value and, in some cases, will pay dividends. If the government bows to the paranoia and anti-capitalist ignorance of the state-educated masses and seizes those profits, what then will be the reason to invest in these oil companies?

Hitting the high achievers the hardest slows down the momentum of our economy right at it's very foundation.

These taxes will be passed on the customer, just like they are every time. And it will hurt the low-income people the most... you know... the very people that Democrats purport to protect?

These are SIMPLE, straightforward concepts. Regardless, I'm sure that your average Democrat couldn't explain them. Nor would they care too, because it's they who are screaming the loudest that profits are up. It's these people legislating to make a moneygrab. It's these people forcing YOU to pay for their political careers! And yet somehow this is less evil than groups of people working hard and having it pay off.