Friday, June 01, 2007

DarthDoyle's Gas Tax--the Reality

Headless did some figgurin':

...this is not a sales or income tax, it is a taxes on the revenue of oil companies.

For corporations, this is significant because net income is always a small fraction of gross revenues. In the case of ExxonMobil that fraction was 10.18% for FY2006. Therefore the JimDoyleTax would be approximately 24.6% of ExxonMobil’s Net Income from Operations for Wisconsin. That is not 2.5% as most think about it ...

We all know (Darth included) that this "tax" is DOA from day one, even if it's passed.

The question is: what does Darth plan to substitute for it in his FantasyLand 'revenue' column?

No comments: