Examine that which has not been examined before.

Russell Adams. 10 July 2017. 2:45 PM. Wall Street Journal.

In a revelation bound to shake up Corporate America, the U.S. Attorney for the Southern district of Florida publicly filed charges against Oil Conglomerate Frontier Energy at the start of business today. During the subsequent Press Conference, Acting U.S. Attorney Benjamin Greenberg announced, “The federal government will not allow any corporation, big or small, to avoid its commitment to taxation under Law.” He later explained charges of corporate malfeasance that alleges Frontier Energy defrauded the government by under reporting its profits since December 5th, 2016. The charges launch a federal investigation into the Oil company’s financial statements, which is scheduled to begin when a federal judge authorizes Homeland Security’s detainment of Frontier shipments going in and out of the country.

Florida is a lax State regarding taxation. According to the State’s Bureau of Vital Statistics, Florida maintains a flat-rate tax of 5.5% on businesses annually. That is approximately 27,500 dollars if a business generates 500,000 dollars. ‘Fossil fuel valuations of 2016,’ an industry analysis conducted by the U.S. Department of Energy, claims Frontier generated 518,000,000 dollars in revenues for the year. State taxes would have been upward of 28,000,000 dollars. The State of Florida has not filed charges, suggesting the Company met its tax burden at the state level. However, the evidence begs the question; why would an Oil Conglomerate pay State taxes and evade the Feds? Typically, a Corporation pays Federal taxes and avoids the State. Why? The Federal Government maintains greater resources.

The Brookings Institute, a public-policy think tank, predicted Corporations would circumvent increasing Federal taxes in its Forum on Free Market Economy in April. Brookings Institute Chairman, Byron Chapman, said, “In response to tax hikes many Companies are uprooting and outsourcing operations. While the government believes capital amassed from taxation helps fund it, it actually drains Capital businesses need for growth and expansion.” Federal taxation rates have increased by .8% annually since Obama’s first-term. In July 2015, Federal taxes were fixed at 18%. By July 2016, federal taxes increased to 18.8%. Today, federal taxes in the State of Florida are fixed at 19.6%. 19.6% of 518,000,000 dollars is 101,000,000 dollars. Under current tax regulation, Frontier Energy was legally bound to pay 101,000,000 dollars in addition to the State’s tax of 28,000,000 dollars—a sum of 129,000,000 dollars for the year 2016 alone.

In response to the allegations Frontier Energy released a Public Statement saying, “We will act swiftly to resolve any inconsistencies in our financial records. The Federal Government ought to reinforce its amiability to the Industry by withdrawing its pending freeze of our commercial assets.” Frontier Energy is based in Dallas, Texas, and maintains export/import operations in New York, Massachusetts, and Florida. A federal freeze is predicted to cost the company millions of dollars each day. It is unclear how the company will respond. In addition to federal pressure shareholders will soon demand tighter scrutiny of the company’s activity in what pundits are calling, “A UFC championship match between the Government and Big Business.”