Common sense and taxes


Another look at ExxonMobile profits
The Tax Foundation runs the figures on the ExxonMobile oil company profits. It confirms what I told you before.

While they were recording record profits last year, they were also writing checks to Uncle Sam to the tune of $100.7 billion -- two and a half times what they made in net profit. In fact, previous Tax Foundation research found that from 1977 to 2004, federal and state governments extracted $397 billion by taxing the profits of the largest oil companies and an additional $1.1 trillion in taxes at the pump. In today's dollars, that's $2.2 trillion.  

And no doubt there will be renewed calls to punish energy companies with windfall profits taxes and special legislation that prohibits them from tax credits that others may take. The problematic truth is that these responses will always hurt more than help because they ignore basic economics.  Businesses don't pay corporate taxes any more than a plot of land pays property taxes. Ultimately, people have to pay. 

Don't buy into the game. Ultimately, higher American gasoline prices are caused more by government than corporate greed. Higher taxes and diverting "excess profits" means higher prices at the pump. Of course government will never admit that.

The politicos see an easy target, and that is why they are posturing and making noise.

— NeoWayland

Posted: Sat - February 10, 2007 at 02:27 PM  Tag


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