Taxes...

Once again, I'm pissed off that "federal income taxes paid" are not subtracted out of my "Wisconsin taxable income." That's one of the first lines on the Iowa form...

I never see this money. As far as my take-home pay, that money doesn't exist. Why am I being taxed on money that I never receive?!?

("Why are you just noticing this now?" "Now? I'm two weeks early this year!")

This is the only place I can complain about it; too many people respond with "Why are you complaining when you're getting a refund check?" and I'm irritated by people who believe they're smart (and on paper are "educated") but can't be bothered to learn/understand where their wages go.

Gas taxes

This is interesting.

Gas prices soar, WI Gov Doyle seeks to raise state gas tax, claims it's not really a gas tax.

Gas prices soar, IN Gov Daniels refuses to suspend state gas tax as Democrats urge.

I don't really know how to analyze these, since I lack the economics background. I do note that gas in Indiana is taxed at 6% + $0.18/gal, so around $0.38/gallon at $3.40/gal, and the gas tax in WI is $0.33/gal regardless of price and expected to go up to around $0.40/gal. From a consumer standpoint, the flat-rate tax per gallon is much easier to not notice as prices fluctuate. And it seems counterproductive to "combatting high prices" to seek to limit the amount of gasoline a company brings into a state--something economists understood in the 18th century and Democrats can't figure out (or willfully ignore) today.

What I can analyze is that neither of these policies are really about "helping citizens." In Indiana, the Dems hate Daniels so they're toying with a visible small issue to make him look bad; in Wisconsin the Dems are exploiting the "ZOMG! Companies make profits and that's wrong!" fears and resentments of people who don't understand math and don't like people making more money than they do.

But I find the regional differences in strategy--more taxes! Less taxes!--interesting. Just like it interests me that an Indiana Democrat would probably be cast as a knuckle-dragging Neanderthal right-winger on either coast. :)

We don't need no stinking oil in WI...

I never bought the argument that ~9% profit was "unreasonable"--especially in light of all the infrastructure necessary to get the product to market at all. Plus, I think part of my 401(k) is in "energy" mutual funds, along with millions of other people.

But this is the Socialist Republic of Wisconsin. ROI is bad, mmm-kay?

A proposed state tax on oil company profits will inevitably be passed on to consumers at the pump, a report to be released today says.

No shit!

The Wisconsin Policy Research Institute, a conservative think tank based in Thiensville, contends that a provision in the proposal aimed at keeping the tax from being passed on to consumers will be overturned in court, as has happened in other states.

...

"This tax should be called what it is - a five cent increase in the gas tax," the report says. "The no-pass-through provision, with its promises of jailed oil company executives and cheap gasoline, should have no place in a serious discussion of transportation finance."

Jailed oil executives? You expect "cheap gasoline" after they spend millions of dollars on legal defense? And who's spending the millions of dollars necessary for personnel, equipment, and office space for "audits" of the oil companies' finances?

Here's the kicker:

But as oil companies see their price of doing business go up, less oil would be allocated to the state's gasoline stations.

And then the price goes up at the consumer level (supply/demand). The oil companies themselves haven't jacked up the price to pay the tax. All they did was send the gas and heating oil to Illinois.


Meanwhile, PepsiCo turns a much larger percentage profit on sugar water--during an "obesity epidemic." There's an excellent candidate for social-engineering through punative taxation--and I don't need Pepsi to get my sorry butt to work and back. It's just as wrong, but let's be consistent with our feel-goodery...