Exxon Mobil Corporation 2007 estimated financial data.
Income before income taxes: $70,474,000,000. That is a lot of money. But Obama and Clinton would have you think “THE OIL COMPANIES” paid zero taxes. Not true. 42% of that amount–29 Billion Dollars were paid on the 70 Billion dollars. That is a pretty high rate! Additionally, that doesn’t count the taxes we already contribute to the government directly when we are at the pump. Next time you wonder why we pay so much at the pump, please remember that our government (federal, state, and local) makes more money off gas than the evil oil companies do.
Raising taxes on corporations, thats the answer!
To further illustrate the point of just how much of the tax burden of this one company, lets take a look at how Exxon’s taxes compare to the contribution of the bottom half of all personal income taxes paid. There are ~130 million tax returns filed annually. The bottom 65 million pay a combined $27.4 B. Link here.
I guess I just don’t understand what it is these politicians plan on doing to “THE OIL COMPANIES” to punish them for already contributing more tax income than the bottom 65 million wage earners combined. Please help me understand.
The thing I don’t understand is if profits are soaring to record levels, why the heck are they sticking it to the American people by raising the prices and charging $3/gal? If Wal-Mart raises their prices for example I can simply shop elsewhere. With gas I don’t really have an alternative but to pay the price that is set. Another thing that is hard to stomach is that those types of profits are being realized in the face of a sliding economy (which is affected by the price at the pump). Finally, with those profits, they aren’t well known for investing in clean renewable energy which is what America needs to do aggressively in order to 1) clean up our air and water, 2) slow GHG emissions, 3) stop funding terrorist states. Finally on top of that Bush was trying very hard to reduce their taxes (again in the face of these profits). For these reasons I don’t feel sorry for them at all and I certainly wouldn’t campaign for their “cause”.
The key word here is PROFITS. Profits may be soaring to record levels but profit MARGINS are pretty stable, although they may be near record levels as well. In the grand scheme of things though the profit margin isn’t that great compared to your typical company. OF course some companies would kill for that kind of profit margin.
I think the problem is that people don’t understand that a Corporation is a separate legal entity owned by millions of shareholders (in Exxon’s case). They think it is owned by the super rich who “don’t pay any tax” (another myth).
If they understood that millions of Americans benefit when Corporations grow they would grasp the idea that if we lowered corporate taxes, anyone owning a share benefits.
Big Corporations are easy targets if the message is delivered to the poor.
With gas I don’t really have an alternative but to pay the price that is set
There you are.
I don’t begrudge them the the profits, but they do have an obligation to make them in a responsible way. In the end, the market will dictate that we find another energy source. $3/gal hurts many, but not obscenely. Maybe $5/gal will do it? Personally, I don’t think we’re in for a smooth change to another energy source- its gonna hurt along the way.
Exxon Mobil Corporation 2007 estimated financial data.
Income before income taxes: $70,474,000,000. That is a lot of money. But Obama and Clinton would have you think “THE OIL COMPANIES” paid zero taxes. Not true. 42% of that amount–29 Billion Dollars were paid on the 70 Billion dollars. That is a pretty high rate! Additionally, that doesn’t count the taxes we already contribute to the government directly when we are at the pump. Next time you wonder why we pay so much at the pump, please remember that our government (federal, state, and local) makes more money off gas than the evil oil companies do.
Sorry but this is only the first part of the taxation.
The 41 billion left over is then paid out in dividends to individual stock holders where it becomes income and is taxed all over again, so the fed can easily be getting another 10+ billion cut on the second round of taxation.
But, like you said, Raising taxes on corporations, that’s the answer! Maybe with the “right” administration we can get the total take up to 75% from the pitiful 50-60% the goverment’s getting now.
Raising taxes or removing tax breaks? The recent energy bill mandated 35mpg by 2020, but in order to get the bill passed, Democrats had to agree to leave $13.5 billion in tax breaks for oil companies. The president threatened veto unless the tax breaks remained. Those tax breaks were put in place in 2004/2005. Does EXXON need tax breaks to remain profitable?
you are certainly correct that this is just the tip of the iceberg, as this is simply income taxes.
sales based taxes:
$31,728,000,000
other non-income taxes:
$44,091,000,000
income taxes:
$29,864,000,000
This gives to government a total take home of $105,683,000,000. Yes that is ONE HUNDRED FIVE BILLION SIX HUNDRED EIGHTY-THREE MILLION DOLLARS!!! I bet it would help the pain at the pump if the government wasn’t taking 100 Billion Dollars from its citizens when they buy gas, at that is just at Exxon Mobil owned stations…
I’ve read that Exxon makes somewhere around .08 - .10 in profit on every gallon of gas they sell. Does that seem excessive? Taxes on that same gallon, depending on the state you live in are around .30/ gallon. Why does Exxon take all the heat? Exxon makes a lot of money because we buy a lot of their product. Not because they are gouging us at the pump.
The thing I don’t understand is if profits are soaring to record levels, why the heck are they sticking it to the American people by raising the prices and charging $3/gal? If Wal-Mart raises their prices for example I can simply shop elsewhere.
You can’t drive less? Sure you can. Last summer when poeple were all up in arms about gas prices, gas consumption actually went UP not down. If you’ve got a product and people contineu to buy more and more, why would you LOWER prices when that doesn’t increase demand? You wouldn’t.
It’s not Exxon’s fault American’s drive more and more. Maybe if we consumed less our need for gas wouldn’t be so high.
I drove my ~35 mpg car a little over 3500 miles last year. How about you?
By the way the former chairmain of exxon took almost a half a billion for his personal retirement package. But, yeah I can see how the guy needs a break.
I’ve read that Exxon makes somewhere around .08 - .10 in profit on every gallon of gas they sell. Does that seem excessive? Taxes on that same gallon, depending on the state you live in are around .30/ gallon. Why does Exxon take all the heat? Exxon makes a lot of money because we buy a lot of their product. Not because they are gouging us at the pump.
That is what the gas station owner is making if he is lucky.
The major integrated oil companies make a lot more than that. Integrated = they have their own crude sources, refineries and branded outlets.
“Big Oil” makes a margin at the well head that come from the difference between the costs to recover that barrel Vs the current market cost of a barrel of crude. The actual barrel cost is generally much less than the light sweet price you hear regularly quoted. This is where most of the current profits are coming from with record oil prices. In some cases this could be more than a dollar a gallon if they use their oil. Other oil they buy at market prices.
The second profit area is the refinery crack spread. The crack spread is the difference between the crude cost and the fuel wholesale cost after the crude is refined.
The 3rd profit line is the DTW or dealer tank wagon. This is the difference between the wholesale rack price and the price they charge their branded customers.
If you buy a gallon of gas in the bay area for say $3.00 using your credit card today.
53 cents goes to the government. you actually pay sales tax on the tax.
9 cents goes to the credit card company
4-16 cents goes to the gas station owner
2-4 cents to get the gas from the terminal to the gas station on a truck.
How much of that 2.18-2.32 is “profit” depends on a lot of factors.
But Obama and Clinton would have you think “THE OIL COMPANIES” paid zero taxes.
Can you provide a link?
So far all I can say for certain is that “Flannagan would have you believe that Obama and Clinton would have you think “THE OIL COMPANIES” paid zero taxes.”
But Obama and Clinton would have you think “THE OIL COMPANIES” paid zero taxes.
Can you provide a link?
So far all I can say for certain is that “Flannagan would have you believe that Obama and Clinton would have you think “THE OIL COMPANIES” paid zero taxes.”
ok–you are right. however, the oil companies are certainly demonized by many politicians…
C’mon Flanagan, I learned a lot from you regarding bike training and triathlon in general. I miss your postings in the main forum. And I am serious. Please get back to what you do best. Leave the Lav room politicking to the “experts” and extremists. Next thing you know, you and Learn will be trotting around Arlington with your concealed glocks and plotting against the evil liberal conspiracy while busting out your 9:15 miles. Just go pro already, then you won’t have time for this nonsense.
The good news for hillary is she can already create 2 of her stinkin’ 50 Billion Dollar funds with Exxon alone. She should be praising Exxon for being open for business in the US and providing this windfall of tax money.
Scary. What is more scary is I am sure Obama agrees.
Well, I’m not thrilled with the idea of profiteering on a resource that, at least short term, has little flexibility in demand by the consumer, any more than I am for bloated senior officer pay in corp America. That said, the way Hillary speaks of “taking the profits” of an absolutely legal business IS scary.
Just go pro already, then you won’t have time for this nonsense.