Today is

Thursday, June 11, 2009

Big Oil Will Likely Pass Tax To Customers

WSJ Excerpt:
Allowing oil companies to pass along the new 2 percent tax to consumers at the pump removes any questions about its legality, said Rep. Jennifer Shilling, D-La Crosse. Shilling, who sponsored the change, said oil companies could choose to absorb the tax or pass it along up to 4 cents per gallon.
Absorb the tax? Not likely.

Before it could have its day in court, Wisconsin Democrats caved in to Big Business interests on the tax of gross receipts from oil revenues. The failure to implement the no-pass-through provision proved what many have come to know and fear - that big business and corporations pay zero to very little taxes in the state of Wisconsin. And if you try to make them pay - they'll sue.


The Sconz said...

Lou, this is not caving into big business. This is caving into common sense and the constitution. You can't tax a business and not expect it to be passed on to the consumer. Big Oil would probably have caused more trouble by dragging the state into an expensive legal battle if they had pushed ahead with the old plan.

Lou Kaye said...

I understand it likely was unconstitutional but I think it's important to keep the entire "tax hell" business campaign in focus regarding their share of passed-through taxes. They currently (business) have it both ways. I think this tax case would have brought that Kris Kringle moment in court about business taxes - and eventually put everyone on the same page regarding taxes on expenses, profits, receipts, sales, etc.

Post a Comment