Tax on refineries will be shifted to consumers

Sep 24 2010 - 3:19pm

(UNEDITED)Re: Standard Editorial, 'Adams' tax plan sound' 23 Sept 2010 I agree that the state gasoline tax is too high. I also agree that the petroleum producers in the State of Utah are gouging the public to the extent that they can get away with. State Senator Valentine's comment that to 'switch tax responsibilities might harm the refineries' by making them less competitive, is also valid. They, as well as many other enterprises, are pricing themselves out of the competitive market. But to shift the acquisition of revenue from the state tax on gasoline to charging or taxing the refineries is not the solution. It merely shifts the point of collection.

Refineries, as well as all other business enaterprises cannot be taxed. They rely on profit to remain viable. To raise the cost of production by taxing the corporation is an old political trick of smoke and mirrors. The corporation merely shifts the tax burden to the consumer in higher prices. Otherwise, they could be taxed out of existence. Any tax levied on a business must come from the only source of income the business has -- the price that is charged to the customer/consumer.

Because the semi-monopolistic oil industry provides a product that the public must have, they have a moral obligation to charge only enough to maintain a fair profit margin. Likewise, politicians have a moral obligatin to be truhtful, and not try to pit the public against big business. If politicians and businesses were to be honest and honorable, a fair compromise could be found for the benefit of all.

In conclusion, Senator Adam's plan will not solve anything. It is obvious that it merely tries to camouflage the burden on the sonsumer.

Norman R. Farr

Riverdale

 

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