This past quarter, ExxonMobil's "fat profit" is anything but – about 8.5 cents per dollar of sales. But the company DID pay a fat tax bill. Actually, customers paid that bill.
On a worldwide basis, in the 2nd 2008 quarter, ExxonMobil paid over $10 billion in corporate income taxes in the second quarter alone, $9.5 billion in sales taxes, and over $12 billion in other taxes.
In other words, ExxonMobil paid (or at least collected) $32.361 billion in taxes in the second quarter. Or to look at it another way - Exxon paid (or collected) almost $3 in taxes ($32.361 billion) for every $1 in profits ($11.68 billion).
That means that for every dollar in Exxon sales – not profits, SALES -- 23.4 cents is for taxes. And that is averaged over all types of sales – not just gasoline.
If the government chooses to nationalize Exxon (and the other oil companies) and take all their profit (reducing the stocks to zero value -- devastating pension funds nationwide), and if we make the outlandish assumption that a government oil company will run as efficiently as Exxon runs now, the price of $4 gas would drop all of 34 cents a gallon. Meantime, government taxes exceed 94 cents a gallon.
For those who wish to verify Exxon taxes, here's a URL for the company's quarterly earnings statement:
http://tinyurl.com/5rnmyc
Richard Rider, Chair, San Diego Tax Fighters
of CA
@
Aug 03, 2008 13:08:24 PM
Price is determined by outside market factors.
supply and demand has failed in this market.
ROdriguez
of TX
@
Jul 14, 2008 04:34:41 AM
Windfall for Goverment
When privatized natural resourses are made scarce , Specifically a commodity subject to speculation. Those private parties will use their new found wealth, to shore up, If not corner their market : Judicially, Legislatively and, Executively ; That is Historically .
Their was a day when your reserves earned the price of your share's. Today we have entered a time when the combined scarcity of major player's earns your value.
Sherman antitrust act 1890-1914
greg a jones
of CA
@
Jun 15, 2008 20:29:07 PM
Regulate the US Major Oil Companies - not a good idea!
I much prefer to pay $4.00 per gallon for my gas than use my gas waiting in line to buy gas or not being able to get gas at all. When price of gas is higher than my pocket book can afford, I use less. This typical reaction will reduce the demand and if wide spread enough, could reduce the price as well. A free market in action right out of Economic 101. The price of oil is determined by supply and demand on the world market. US politicians planning to regulate US energy markets must first call Hugo Chavez and let him in on their rules of regualtion. Also, the Prince of Saudi Arabia and Mr. Putin should be notified as well. How foolish can we get? Oil company profits plowed back into energy production when gulf waters and Alaska are opened to domestic exploration is the best use of these profits that will increase oil supplies and reduce prices. In the hands of politicians, oil company profits will be will be fritted away. Oil exploration and development requires hugh multi-year capital investment and highly skilled know-how. Instead of viewing oil companies as the enemy, allowing these companies to do what they do best with the profits they produce stands a much better chance of achieving the desired energy goals than energy market regulation.
Frank Hewlett
of FL
@
Jun 13, 2008 17:06:36 PM
Rip Off!
Bob is on the money! Utilities are regulated. Why aren't gas companies regulated? I'll tell you why... because all of the politicians won't bite the hand that feeds their campaigns!
Steve
of UT
@
Jun 11, 2008 22:26:54 PM
OIL BUSINESS
Letts try and understand why oil and gasoline prices are so high. If you think it is greed or politically motivated it's time for a global education. The reason Americans enjoyed low cost oil for many years was because India and China did not participate in the consumption of crude oil. Not to mention the fact that Americans as a whole have wasted this non renewable resource by driving low mileage vehicles,read SUVS, and other fuel consuming activities. Oil and gasoline have been expensive in Europe for decades, the europeans have been forced to conserve now Americans must become better at conserving oil and gasoline.
david drigs
of IL
@
May 07, 2008 14:34:58 PM
Price Control
In times past, the government has issues price caps on things for the sake of the economy. If this isn't a clear example of te need for such an action, what is?
Bob
of GA
@
May 04, 2008 08:44:58 AM
No profit if we do not buy from Exxon
Exxon only makes a profit because people continue to buy from them. We don't buy from the Big 5 and never will. We save our money by not eating out and I now skip dinner and we use it to patronize the other stations. We plan our shopping to coincide with buying gas and never buy from the Shell right here because they stay consistantly 30 to 40 cents higher. The Big 5 only make a profit because people buy from them. We shredded our gas cards and will never have a gas card again. We buy from a station that gives 10 cents off a gallon for cash. The profit the Big 5 makes never comes from our pocket. Nancy Pelosi has asked the FTC to investigate the oil companies for manipulation and gouging and we need to support her cause. Go to her website and cheer her on.
Penny
of CA
@
May 04, 2008 00:20:36 AM
sickening state of affairs for Exxon
As long as we allow oil to be traded on the open stock market nothing will ever change.....the price on the gas pump is artificially jacked up by hyping shortages etc...Oil is being bought cheap ....then sold later when the price goes up....whithout the buyers ever taking possession of their merchandise in the meantime....cute!
of ME
@
May 03, 2008 16:30:31 PM
OIL COMPANY PROFITS, AND SUPPLY
There is no shortage of oil in the world market. Pls refer to Energy: the Non Crisis. The oil companies, CEOs, corporate greed, and crooked politicians are going to bring our economy to a stand still, and break this country. These crooks are allowed to do this when most average Americans cannot afford a decent home or decent health care. What is wrong with this picture??
There is technology out there right now, to wean us away from big oil and OPEC. It is all about the money and the greed, and nothing else. Same program with the insurance companies, pharmaceuticals, the medical industry, and the like.
Richard Rider, Chair, San Diego Tax Fighters of CA @ Aug 03, 2008 13:08:24 PM
ROdriguez of TX @ Jul 14, 2008 04:34:41 AM
greg a jones of CA @ Jun 15, 2008 20:29:07 PM
Frank Hewlett of FL @ Jun 13, 2008 17:06:36 PM
Steve of UT @ Jun 11, 2008 22:26:54 PM
david drigs of IL @ May 07, 2008 14:34:58 PM
Bob of GA @ May 04, 2008 08:44:58 AM
Penny of CA @ May 04, 2008 00:20:36 AM
of ME @ May 03, 2008 16:30:31 PM
t. briscoe of MT @ May 03, 2008 14:57:28 PM
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