Thursday, August 07, 2008

Windfall Profit Tax on Theaters

Why not?

It makes about as much sense. Congress's Unsound Fury over Big Oil

If 8% profit is "unreasonable", what other commercial endeavors are up for scrutiny?

In the first quarter of 2008, Big Oil had a profit margin of 7.4 percent. Over that same period, the pharmaceutical and medicine industry earned a 25.9 percent profit, the chemical industry earned 15.7 percent and the electronic equipment industry earned 12.1 percent.
What about those movie theater refreshments? Four large popcorns and four large sodas cost $31.50. The total raw ingredient cost is approximately $7.56. That equals a 76 percent gross margin. Where is the political outrage over that figure?

The article points out

if the oil industry is so powerful, why did it let gasoline prices fall through the floor throughout the 1980s and part of the 1990s? For that matter why did it let gasoline prices fall sharply after they spiked in 2005 and 2006?"

Pelosi never decried this "obscene" lack of profits and shareholder abuse. Instead, she seeks to punish an industry that makes a modest profit margin on a high demand good.

For that matter, what's a "reasonable" amount for you, yourself, to make at your job? Maybe Congress should take a look at that, too.

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