Exxon Breaks Profit Record - Should We Forgive Them?
Unfortunately, that kind of bull doesn't fly.
The idea that Exxon paid $X in taxes, almost 50% of their net income, looks good on paper. But, if you really think about it, it just doesn't add up.
How much does a gallon of gas cost? I'm betting that, no matter where you live, a goodly chunk of that is taxes that are already included in the price.
So, follow me here, did Exxon pay all that money in taxes, or did they pay that money on YOUR behalf?
YOU pay the taxes on gas right there at the pump. So, when you hear Exxon paid X amount, remember, almost all of that, minus the various taxes that have to do with the corporation itself and dividends and such, was paid by the CUSTOMERS. Exxon only deposited that into the Federal Treasury for you.
So, bearing that in mind - that they didn't actually pay about half what they made back to the government in taxes - why, exactly should we stop being upset that we're being collectively raped through our wallets?
Published by Bryan Belrad
The mind behind Zero Sum Theory, author of best-selling fiction and non-fiction, see what else he's up to on Facebook. View profile
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6 Comments
Post a CommentUpdate: Exxon actually did pay up on the Valdez settlement this year (finally). As a result, their stock lost value temporarily because they failed to set a new all-time quarterly profit record (by less than 1/1000). However, with last quarter's new record-smashing numbers, they're back on track to have the most profitable year ever - again.
Dwayne - perhaps you should look into a subject before commenting on it, especially if you're going to call someone who does have knowledge on the matter "idiot". The sales tax paid on gasoline is collected at the service station, and submitted to the STATE government (and locality, if applicable). The taxes in question in this article are the extra federal taxes on gasoline - the ones that John McCain wanted to create a "tax holiday" for. Those are collected by the "Big Oil" companies, and are paid, by them, to the federal government. Because of that, they get to say that *they* paid that amount of money in taxes, even though it is the consumers who actually foot that particular bill; oil companies just act as a kind of bank account for the money to run through first. And it is that tax that allows Exxon to claim that roughly 50% of their gross goes to the government.
As to the article above. Cosumers pay a SALES TAX you idiot. That has nothing to do with income taxes. Just like when you buy a loaf of bread. You pay the sales tax. The manufacturer of the bread still has to pay a tax on the income of that bread. If you are going to write about business practices you shouls at least have some knowlege.
That's correct - nearly 25 years later, they still haven't paid up. They say "It's the largest environmental fine in US history." Of course, that was the largest spill in US history... Here's a link to the story: http://i.abcnews.com/Technology/GlobalWarming/wireStory?id=4351956
I heard lately that Exxon is in court fighting the amount they were fined for the Exxon Valdez disaster in 1989.
That's exacty right, Alan. Although Bryan does report that they paid almost 50% of their income (the $39 billion) leaving "only" $40 billion, I believe the company anounced it the way they did to try to get people confused into assuming they lost $39 billion in taxes out of a $40 billion income. As you say, the "profit" Exxon is actually talking about is the corporate income after all overhead, including all state, local, and federal taxes, all import and excise taxes and the plethora of fees associated with sales and distribution. And as Brayn indicated, those are already included in the prices that we pay at the pump. So I wonder what, if anything, Exxon actually pays as their own taxes?