Monday, July 21, 2008

"Tax this Joker"...

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Maybe Democratic Party Speaker of the house needs to call for a “Windfall Profit Tax” on this industry?

Democratic Party Speaker of the House Nancy Pelosi (D) and her party has been quick to call for “Windfall Profit Taxes” placed on the oil industry and companies for the “outrageous” profits these companies have been making. Now since we are not focusing on this debate right now for many have posted about this topic, lets not worry about facts like the oil companies make a $.07-.09 cent profit per dollar revenue as compared to the high percentage of state & federal taxes per dollar on the same product.

Democratic Party Speaker of the house Nancy Pelosi (D) leads the House of Representatives side of Congress and Democratic Party Harry Reid (D) leads the other side of Congress in the Senate and combined the U.S. Congress is maintaining a 14% approval rating. But yet Democratic Party Speaker Nancy Pelosi (D) has call the President the worse ever and several from her Democratic Party has called this economy the worse since the depression…

I found it very interesting that while in the middle of the “worse economy since the great depression” I read today that this past weekend was the best grossing movie week in history. It seems that the people, the same people who approve of the Congress performance at 14%, have flocked to the theaters to forget their dire economy and status in life…

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Media By Numbers LLC. Final figures will be released Monday.
1. "The Dark Knight," $155.34 million.
2. "Mamma Mia!", $27.6 million.
3. "Hancock," $14 million.
4. "Journey to the Center of the Earth," $11.9 million.
5. "Hellboy II: The Golden Army," $10 million.
6. "WALL-E," $9.8 million.
7. "Space Chimps," $7.4 million.
8. "Wanted," $5.1 million.
9. "Get Smart," $4.1 million.
10. "Kung Fu Panda," $1.8 million.
Media by the Numbers reports gross sales for 2007 at $9,680,000,000 (Billion)…

"that net profit margins on DVD sales are 50-60%, while the lingering VHS business sees 20-30% net profit. To put this into plain English, your average $20 DVD apparent costs around $9 to produce, advertise, distribute, etc., leaving about $11 on top as pure profit."

2 comments:

Phil said...

What is the mark-up on all intellectual property? How much is brain power worth? How much material actually goes into writing an article? Writing a book? Developing a math formula? The paper, the ink, the chalk? Would an author, a mathematician, a thinker be subject to windfall taxes?

RightsideVA said...

Phil,

The above example shows that there are numerous other industry's out there that maintain a much higher profit margin then the Oil companies that many, like Democratic Speaker of the House Pelosi and her crew, continue to call for a "Windfall" tax on.

I highlighted this industry for it has become a "friend" to the Democratic Party and many of those in Hollywood are vocal liberals who overwhelmingly support Democratic Party objectives and tactics. Our "Democratic" friends have focused on a industry that delivers fuel to the nation for growth and does a very good job at it. When was the last time you went to a gas pump and found it out of fuel? When did you not have at least two choices at any exit or intersection that had a gas station on it? Yes fuel is something that we all require and must buy but if the evil oil companies are so bad why are they operating at a 7-9% profit margin? Why are they not hammering us at the high profit margin like other industries such as "Hollywood"?

Maybe the Democratic Party does not go after the Hollywood industry for they need their support so much. Luxury tax? Look at the high tax rates on boats, larger vehicles, and sin taxes on alcohol. Why don't we pay higher taxes on movies in an industry that the profit margins are so high?

"Stage One" economics says tax the movie industry and evil oil companies and get more tax money for Congress to spend...

"Stage Two" economics looks at the results and acknowledges that consumption will go down some but people will still buy gas and go to the movies. Stage Two thinkers will also understand that it is ultimately the consumer who pays for both the oil company and the movie company will pass any tax increase onto the consumer...

So why has the Democratic Party avoided taxing Hollywood if they are operating on such high profit margins?....