Exxon, Big Oil Profits Evil Only Until You Weigh Their Tax Bills

A sad look at serfdom

I wish when people complained about tax levels, the same big business lines could be used for individuals. Perhaps if I make $40,000 a year, but I spend $30,000 a year keeping myself alive, fed, sheltered and whatnot, I could complain that my taxes are 2.5 times higher than my net (after payments + taxes) profit?

But really that's not the point, the point of this article is the monopolistic transfer of wealth away from persons to corporations. The article itself says we should be "grateful"(!) that Exxon is making money, because, let us face it, they one of the few that does so. We should be grateful that big businesses are willing to employ any of us, sell us their product and pay any money into the system at all. A gradual slide into corporate lordship.

Would you like some Oil with that Baloney?

As the comments here show, people are not fooled by ridiculous articles like this one which fails to address the need to switch to renewables and reduce deadly pollution. We really do have the technology to run electric vehicles with zero emissions which by the way can also be great looking and accelerate no no gasoline car ever could. Solar energy and electric cars should be pushed RIGHT NOW beside oil cars and then we will see some amazing things happen in the market and in peoples minds. Look at teslamotors for more info.

Hydrogen fueled cars & Exxon profits

The media trumpeted Exxon's $45.2 billion profits in 2008 (about 10% of total revenue), generating debate on whether it was only "fair" because the company paid over $116 billion in taxes (US News article by Robert Bryce, Feb.17, 2008). These amounts are irrelevant to the real issue facing the U.S. economy and the auto industry: the exhaustion of oil is inevitable sometime in the 21st century (especially after millions in China and India are driving the new mini-cars their industries are designing). The U.S. now imports 25% of its oil from the Middle East and Venezuela (where many politicians make a point of hating the U.S.) Oil fueled vehicles are a major factor in CO2 emissions linked to global warming (which the U.S. has treaty obligations to reduce). The first Honda CLARITY cars -- which run on non-polluting hydrogen fuel cells -- are now being leased in California; GM is tooling production of the hydrogen powered Chevvy EQUINOX (with first leasing scheduled for this coming fall). All other auto makers are developing hydrogen cars, some of which have electric motors (and are therefore hydrogen-electric hybrids). Why not offer several $billions of stimulus money as NO INTEREST LOANS to US auto makers, contingent on speeding the transition to hydrogen. Stimulus funding could also be set aside to compensate for accelerated tax write-offs for big oil companies provided they use windfall profits to fund the transition to hydrogen fuel. After all, hydrogen comes from water: no need to import anything. And what comes out of the tail pipe? Hydrogen hits oxygen and it's just water.

No distortion

Of the 42 billion in revenue, how much was actually made in the US? Did you know that selling gas is a losing proposition in the US, with all of the profits being made overseas?

Exxon Mobile

If you are only allowed to drill for and then extract oil in far away places, tax dollars that Exxon pays for the extracted oil will have to be sent to far away places.

Deliberate distortion

The author "failed" to mention this, according to the Exxon Mobil 10K filing with the SEC:

Of the $36.5 billion of income taxes:

U.S. & State Income Taxes $3.8 billion

Non-U.S. Income Taxes $32.7 billion

Of the total $116.2 of all taxes:

U.S. & State $13.3 billion

Non-U.S. $102.9 billion

Exxon Mobile

This is for the boob that trashed ExxonMobile for making 45 billion on gross revenue of 404 billion. If those numbers are correct, that means that EM made profit of a meer 11 percent. Most businesses (construction, transportation, manufacturing, etc.) look for a profit around 15 percent. So, it would appear that EM is cutting corners to keep its profits down. My research says that oil companies across the board average 8 to 10 percent profit. That is 5 percent below the normal expected for American Business. I am grateful that EM and others are there to carry the water (or oil) for the rest of the country.

You owe your friend an apology

This is one of the most ignorant rationals I have ever seen. Do you understand economic terms like revenue and profit??

Look at the numbers of all of the oil companies incomes for 2007.

http://www.google.com/url?sa=t&source=web&ct=res&cd=6&url=http%3A%2F%2Ffpc.state.gov%2Fdocuments%2Forganization%2F103679.pdf&ei=jRGwSf-OGoGStQPFnPCHAQ&usg=AFQjCNFsDS-sUJNF5DVbiKomdllYmnKTiw&sig2=X4LDXbFYtaRCKrxES984uw

Exxon's revenue (that is income before anything is take out) was 404 Billion. Their profit was 45 Billion (that is the $ after everything is taken out - taxes, labor, capital). This is a huge profit for a company. If this were a true free market situation multiple companies would enter this industry until this economic profit was only a normal profit.

Since this industry doesn't have easy entry and exit there needs to be regulation to stop this type of price gouging. A company should not be making this type of profit (not revenue, profit!).

Exxon/Mobil & Taxes

It's good to hear and understand that Exxon appears to be upright and a good corporate citizen. It seems when the tax base is dwindling, government must downsize, as well, to meet it's obligations. It's not up to the government to expand and create more demand and pressure on tax revenues, especially during the current tough economic conditions. The incentives should be tax breaks for companies creating new jobs, not for new jobs within the government. The financial markets should not be incented or rewarded for bludgeoning the US economy, as well as the world economy. Unfortunately, it's time to start over, and the financial markets to face the music. The incentives should be to bring manufacturing back to the USA, where "Made in the USA" can represent pride again, create needed jobs, and the tax base that goes with these jobs. An incentive should be to provide tax breaks to companies who contribute & get involved with the education of our children and support to keep all levels of education fully funded--it's not up to government to be responsible for this, as they are obviously not able to do so. Companies who invest in education will reap the benefits when the students graduate and become employees. I have not seen any media coverage to support less government. The cry should be for less government, not for more taxes....

ExxonMobil

I just know that ExxonMobil is doing whatever is right for the country and the people of the country. If some people don't get it its their bad judgement. I am really surprised to see that people just hear on radio or TV and start making judgements. If ExxonMobil is making any profits they are paying taxes on it too. They are the biggest spender in charity and volunteer works. They have the most safe workplace environment. They spend millions of dollars every year for the safety and well being of their employees.