Windfall Profits Tax and big companies
Barack Obama is now supporting a windfall profits tax on oil companies, because of their huge profits.
It's an interesting concept, but his target may be misdirected.
A 2006 report details the biggest business in the state of Illinois. And the answer stunned me.
This business is bigger than the US operations of Walgreen's. It's bigger than Illinois based Boeing and Allstate.
It has twice as much revenue as ADM, and three times more revenue than Motorola. It's seven times bigger than McDonald's.
Have you figured it out?
It's the ligation industry. That's right, the trial lawyers in Illinois represent a $49 billion industry. Their top guys rake in fees in excess of $200 million in a single year.
So, while the liberals attack the outrageous salaries of corporate bigwigs who earn $50 million in a year. You have to wonder why they don't express any outrage over the even larger fees earned by trial lawyers.
In fact, the CEO's of public companies are producing value for their shareholders, providing jobs for the economy and tax revenue for the government.
Trial lawyers, by contrast, through their class action suits, rake in hundreds of millions of dollars as they destroy companies, take away jobs, and tie up our court systems.
I think the Democrats outrage against oil companies is highly misplaced.
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