Archives for posts with tag: Taxes

Ever heard that water is an incompressible fluid? Well, that is an approximation, and it is reasonable in freshman physics classes.

However, water compresses plenty. All matter will compress. An increase in pressure on the matter will compress it. This compression is work. This work is lost (used up) and unavailable for other purposes. The work typically heats the material, increasing its temperature.

I don’t know about you, but I’ve had many arguments about this bit of oversimplification throughout my years. It is one of those situations where a little knowledge (an inadequate amount of knowledge) is dangerous. Fortunately, it is only the kind of danger that is annoying, not destructive.

My point is when we consider a hydraulic system, we generalize and simplify, and we say that a force acting on the water or hydraulic fluid within an enclosed system will act on all surfaces equally. Yes, kinda. Nature will not let you get away with the approximation.

Applying 1 pound-force on 10 in2 allows us to calculate 10 pound-force on a 1-in2 ram, but not all the 10 pounds-force is actually there on the ram. Some of it was lost in work compressing the fluid, and some more was lost in friction acting on the liquid moving through the ram channel to push against the 1-in2 ram.

Accountants make up all kinds of formulas and rules. Each has its purpose and use, and some are limited and not usable in all situations. No amount of accounting can eliminate cost incurred. Obfuscating it somewhere other than final price is sleight of hand.

When a petroleum company incurs cost, such as gross production or severance tax, and every other tax they incur, the petroleum company must account the cost, and somewhere, they must pay it. Revenues must be higher than costs, or the company goes bankrupt (and all the employees become unemployed). Sooner or later, in all circumstances, increasing costs, even gross production taxes, increase the price the petroleum company must charge in sales or fees.

Refiners will pay more. In turn, they must cover the costs with revenues, and the end result is a rise in the price every poor sod pays to fill his vehicle so he can get to work and feed his family. If fuel costs increase, and his paycheck doesn’t, he will have less with which to feed his family.

Real life, be it accounting or physics, never lets us get away with anything. Everything has its costs. To do anything, one must expend time and energy. For anything to happen, time and energy are used up. (That is the purpose of the universe, to use up all time and all enthalpy.)

We all know these things when we pay attention. Pay attention. One can never be so poor as to be unable to pay attention.

In physics, if work is done, it is used up. We have to get energy from somewhere again to do more (or just to do it again). The same goes for money and costs. If we had to pay it, it is gone. We have to get money from somewhere else, or we fail. In the world we live in, you and I, the end consumers, pay that extra money. It doesn’t come from anywhere but us (in general, the business owner, even an oil baron, is one of us; not so the government; they don’t make money; they only take it). Everywhere (like a bank or the government) that has money got it from us. We paid. To the bank, we hope we get more (in interest or intangibles) than we put on deposit. With the government, we can only hope they don’t waste it all, and we live in fear they will only keep coming for more.

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While teachers and other state workers plan to hold me, the rest of Oklahoma tax payers, and our children hostage, our education leaders do things like extend the contract of the Tulsa Superintendent, paying her roughly a quarter-million per year (plus any official expenses, of course). http://www.tulsaworld.com/news/education/tulsa-school-board-strikes-three-year-contract-deal-with-next/article_cdd7589c-c7bb-5019-bba9-8a6347b35fd2.html

http://www.tulsaworld.com/news/education/deborah-gist-s-contract-renewed-tulsa-public-schools-superintendent-remains/article_b183e73a-6023-57c2-af55-dbfca517b8f8.html

Apparently, new teachers should only get $31k, and generally not get raises for years (and experienced, proven teachers don’t end up making much more in many instances), but administrators pull in the big bucks, and news editors proclaim how much they deserve it. Hmm…

Still, apparently, the situation is my fault.

I mean, it must be. The teachers and other school officials (and state workers) all clamor that I’m not paying enough taxes. They say shaking me down is the only solution to their problems.

Well, obviously, I disagree.

If the Oklahoma City Superintendent, making only a little less than Tulsa’s, wouldn’t stick it out, I think the problem is not the money. I mean, who walks away from a $220k per year job because of a bad day at the office? It must have been a really bad day.

Sure, the Supers have to be paid something, and that quarter-million won’t cover much of the needs of the districts, but we keep pouring more money into education, and education keeps declining. It isn’t a money problem! The problems aren’t such that money will fix!

If teachers walk out of classrooms in Oklahoma, that says plainly that teachers don’t care about the students. Sorry, no other way to look at it. You can pretend the teachers have no recourse, but that is a lie. It is simply untrue.

In general, in most individual instances, we pay for perceived value. Sure, many things skew this or that, but for the most part, compensation is consistent with perceived value received.

I suspect most people will argue that teachers deliver more value than they are paid for. Well, true. Really, our teachers are delivering more value than they are being paid in compensation, but (you knew there’d be a but) Oklahomans are paying for an education system, not just teachers.

I, for one, think Oklahoma is taking more from me than is justifiable.

Oklahoma governments (including local) take from me in multiple taxes, and they take from me every year–in sales taxes, every day. They take from me with every utility bill, and they take from me every time I buy fuel.

Scott Inman, my representative (who has me blocked on his Facebook page), voted against raising taxes on me. I thank him for that, but he said he did so because the tax increase wasn’t large enough! Good heavens! He shouted that the proposed tax hiked taxes on the little guy, but not on the fat cats. I’m not sure who he meant, but he called them the Republican’s fat cats. Since Scott wanted more taxes on oil, I reject his argument.

Scott Inman and other Democratic representatives insisted on more cost imposition on oil companies. I suppose he thinks “the little guy” is too dumb to realize that the imposed cost is simply passed on in higher fuel prices, higher utility bills. I suppose Scott thinks “the little guy” will feel better about pretending “big oil” is paying a fair share, while each paycheck stretches tighter with increased cost of fuel for getting back and forth to work. I’ll simply remind that no business actually pays taxes. All businesses have costs, and taxes are simply costs. Prices charged must exceed all costs, or the business is bankrupt. Taxes on business, all taxes on business, are simply and only taxes on the little guy.

Overall, the governments of Oklahoma (and the USA) take more from me, by force, than can be justified by the services (including primary and secondary) rendered.

It is too much. Government is too much. The education establishment, with all its state employees, administration, and staff is too much!

We can pay teachers more without tax increases. We should pay teachers more, but it won’t help with the system. Education is broken, and no amount of money will fix it. (Just ask Aurora Lora.) Superintendents have some ability to fix things in their districts, but school board administrators must cooperate. Teachers unions have to get out of the way. Still, all that is only a small part of the problem. The first step is to end compulsion. While we coerce children and parents into State-sanctioned schools, the education cannot but worsen. The plight of teachers cannot but worsen.

Regarding unions in general, they exist to oppose the “boss,” yes?

Of course. Unions exist to collectivise the workers against the employer. The notion, which has sometimes been true, was employers exploited workers for greed.

Okay, but when have parents been greedy and knowingly exploitive of teachers?

Don’t teachers work for the parents?

I know unions disagree, but don’t we all say that teachers work for the parents, for the students? Isn’t that what we all assert?

Then the unions oppose the parents and students.

Yes, there is no way around it. Teachers unions exist to coerce and tyrannize parents, students, and taxpayers in general. That is who teachers work for. That is who unions oppose.

We err with teachers unions. Teachers err with unions.

Union coercion is part of the problem. Nobody likes to be coerced.

Coercion is evil.

 

 

 

Ever notice that for the most part politicians and lawmakers do whatever the heck they want?

They pretend to speak for the people. They pretend to represent our interests, but they just play their power games and do whatever the heck they want. I know there are a few exceptions, but the portion is too small to matter. Even the ones I’m not mad at still play the games; they still just stick it to us any old way that helps them achieve their priorities, priorities that change with the political winds.

On the drive home, I heard some snippets on the radio and composed the following to my legislators. I’ll be surprised if I even get an acknowledgement.

First, I heard on the radio a Democratic congressman blaming everything on the Republicans. Can we stop the childish name calling and blame casting, please? There is plenty of blame to go round, and the problem is spending, not revenue. Focus on the problem and reducing it, not on some preferred band-aid.

I heard on the radio someone claiming “the voters” want higher taxes on oil. Well, no. No, I don’t think they do. I know I don’t.

I really don’t think anyone wants more taxes. Put a volunteer option on the tax forms, and see if anyone donates extra. (I doubt even the outspoken Democratic politicians will.)

Honestly, there are no such things as corporate taxes; there are no such things as taxes on oil. There are only costs to operations, to extraction, and to production. We voters pay for all that no matter what caused the cost. If the oil folks have more taxes, the costs simply go up, and our prices go up to cover it.

I find it disingenuous and deceitful to pretend the gross production tax is simply on the oil companies. No, it is simply on you and me, and we pay it with every tank-full and every heating bill.

I’m good with getting rid of specialty tax laws and exemptions. The leveler the field the better, but let’s be realistic about it. All state taxes come out of the pockets of every Oklahoma citizen, no matter how a given tax is assessed.

We need less spending. We need fewer state programs. We need consolidation in the things we spend on. Mostly, we need the budget reduced.

Figure it out. Do the hard work. Don’t just pass the buck on to me and the rest of Oklahoma’s tax payers and residents.

You can start by repealing the prohibitions. That will lower some budget requirements.

An article from here, http://ocpathink.org/articles/2626, says,
“Total taxes collected by the state [of Oklahoma] in FY-2013 reached $7.86 billion, an all-time high. This is $2.1 billion more than the $5.73 billion collected in FY-2003.”

Note, that is more than $2,000 per person. $2,000 spent for every man, woman, and child in the state.

The US population is about 314 million, the President’s latest budget was proposed at over $3.9 trillion. That works out well over $12,000 per person in the country. The President proposed hardly over $500 billion for defense spending in that budget, less than $1,700 per citizen. (Is that enough? We are talking about defending all we have and all we believe in. Regardless, it is a paltry amount compared to the total.)

How much do our cities take from us and spend on our behalf?

According to public documents at the OKC.gov web site, our 2013-2014 budget is $1,027,852,482, apparently there were 600,000 of us residing in the city limits in 2012. Assuming it is about the same this year, that is just over $1,700 per person.

Don’t we think we are over doing it? Don’t you think we are letting our government do too much for us? Doesn’t that give them too much power over us?

That is well over $15k spent on us per year. Well over $60k spent on behalf of a family of four. What the heck do we have to show for this money?

I will admit I don’t begrudge my city one cent, but I do wish they’d be a bit more diligent with regard to street repairs. Our city does a good job. They maintain the streets we drive every day, and they keep things sanitary. And they maintain our parks. I despise the regulations, but most of them are sensible, even if interpreted and enforced unevenly. There has to be rules. At least these are close to home. We can go down to city hall, while it is much harder to see our state and, especially, federal officials.

So, the city has the most to do, the most we need done, yet they spend the least on us. Again, aren’t our governments doing more and spending more than we can justify?

Howard Richman & Raymond Richman make points about the propaganda fueling climate change fears, and offer some reasons to not worry. I’ll suggest that cold kills, warmer is better. There is no increase in extreme weather. There is an increase in media coverage and popular reporting with cell phones and youtube. (See Anthony Watts repeated posts proving such at WattsUpWithThat.com.) The Richmans make a good point about the President’s rhetoric related to oil companies not paying enough taxes. That is bogus!

via Richmans’ Trade and Taxes Blog.

President Obama is staking his re-election campaign upon the opinion polls. His administration is suppressing fossil fuel production and development. On March 27, Obama’s Environmental Protection Agency (EPA) limited carbon dioxide emissions from new power plants to 1,000 pounds per megawatt-hour. This rule prevents the building of the lowest-cost producers of electricity: coal-fired power plants. It will raise the price of electricity for American households and businesses.

Then, on March 29, Obama moved to reduce domestic drilling for oil by calling on Congress to end $4 billion in “taxpayer giveaways” to the oil industry and instead to double down on investments in clean energy industries “that have never been more promising.”

Dr. Bernard Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University, in an op-ed in the New York Post, stated that oil companies enjoy no benefits not available to other businesses. They are permitted to expense prospecting and drilling costs during the year those costs are incurred. Weinstein estimates that these deductions amount to $2.8 billion, while wind and solar plants enjoy real subsidies not available to other businesses amounting to $12.5 billion per year — and this does not include state subsidies.

Oil and natural gas companies used to enjoy percentage depletion allowances as their form of depreciation, but those are now denied to the large oil companies. Moreover, when the wells they dig prove unproductive, they can use their losses only to offset gains from their productive wells.

Oil and natural gas companies pay more taxes to federal and state governments than does any other sector of the economy. According to the federal Energy Information Administration, as reported in the Wall St…

via Articles: Does global warming cause extreme weather?.

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