Page 9 of 9 FirstFirst ... 789
Results 81 to 84 of 84

Thread: Senate blocks bill repealing $2 billion in oil tax breaks

  1. #81
    Sage
    Renae's Avatar
    Join Date
    Aug 2007
    Location
    San Antonio Texas
    Last Seen
    10-23-17 @ 10:14 PM
    Gender
    Lean
    Undisclosed
    Posts
    38,972
    Blog Entries
    15

    Re: Senate blocks bill repealing $2 billion in oil tax breaks

    Quote Originally Posted by jamesrage View Post
    Cost-of-production theory of value - Wikipedia, the free encyclopedia
    In economics, the cost-of-production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can compose any of the factors of production (including labor, capital, or land) and taxation.
    Obviously james, some radical right wing nut job altered that wikipage. Solletica has a well written paper by his college poli-sci prof that clearly states businesses should never consider taxation as a cost, clearly it is a privilege they should rejoice in paying and just accept. Any other way of thinking would be greedy...
    Climate, changes. It takes a particularly uneducated population to buy into the idea that it's their fault climate is changing and further political solutions can fix it.



  2. #82
    Professor xpiher's Avatar
    Join Date
    Apr 2011
    Last Seen
    04-23-12 @ 10:33 PM
    Gender
    Lean
    Libertarian
    Posts
    1,993

    Re: Senate blocks bill repealing $2 billion in oil tax breaks

    Quote Originally Posted by MrVicchio View Post
    Obviously james, some radical right wing nut job altered that wikipage. Solletica has a well written paper by his college poli-sci prof that clearly states businesses should never consider taxation as a cost, clearly it is a privilege they should rejoice in paying and just accept. Any other way of thinking would be greedy...
    Why should taxes be wrapped into price unless the only thing you cared about was profits and nothing else.

  3. #83
    Sage

    Join Date
    Feb 2011
    Last Seen
    10-10-16 @ 10:59 AM
    Gender
    Lean
    Libertarian
    Posts
    6,073

    Re: Senate blocks bill repealing $2 billion in oil tax breaks

    Quote Originally Posted by MrVicchio View Post
    Obviously james, some radical right wing nut job altered that wikipage. Solletica has a well written paper by his college poli-sci prof that clearly states businesses should never consider taxation as a cost, clearly it is a privilege they should rejoice in paying and just accept. Any other way of thinking would be greedy...
    production cost

    noun
    combined costs of raw material and labor incurred in producing goods

    Production cost | Define Production cost at Dictionary.com
    Just because taxes are included in that theory doesn't change the defiition of the term.

    But even if taxes are included as a production cost, the profit maximization point--the point where the marginal cost curve intersects the marginal revenue curve--for an oligopoly/cartel is the same

    The MC curve just pivots (turns) right without changing that intersection point. And this is exactly what you'd expect--if the company maximizes gross (before tax) profit, then the after-tax income is also maximized--it's just less than the gross profit.

    Tax increases only increase prices for competitive industries, because of its effect on the whole market (industry supply curve).

  4. #84
    Sage

    Join Date
    Feb 2011
    Last Seen
    10-10-16 @ 10:59 AM
    Gender
    Lean
    Libertarian
    Posts
    6,073

    Re: Senate blocks bill repealing $2 billion in oil tax breaks

    Quote Originally Posted by Nevergolfpar View Post
    You Keynesian's never cease to amaze me. A lot of theory but no basis in fact and the relationship between tax law,margins and corporate profits. You must understand that when Keynes proffered his theory, taxation of individuals and corporations was still in its infancy--a non-player in the current economic model. So regardless of how the supply curve may or may not be affected still has no bearing on the price of gasoline that we both pay at the pump.

    Your above post focus's on the price of crude (and demand) as the sole determining factors in corporate profits of oil companies. Furthermore, you state that ' those companies already set the price at a point that optimizes profits for them based on the global demand for oil, and their own drilling/refining costs.' However, you fail to realize that it is the collective world market which dictates the commodity price of oil, not the individual oil companies.
    The collective world market for crude is just a small number of cartels and supermajors--an oligopoly. OPEC is just one big cartel, and all independent oil cos. (including the ones in the US) clump up into a just a few cartels. Beyond that, all that's left are the supermajors--BP, Exxon-Mobil, etc.

    A cartel functions like just one big company on the world market. If you increase the tax on it, in the worst case, the independents within the cartel may drop out and do something else, but the cartel remains. Because of that, the no. of cartels doesn't change due to the tax, so the supply curve for crude doesn't move, assuming nothing else (i. e. physical production costs) changed.

    And if there is no movement of the supply curve, and no movement of the demand curve, then the price stays the same.
    Last edited by solletica; 05-20-11 at 03:08 PM.

Page 9 of 9 FirstFirst ... 789

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •