posted September 6, 2008
Sen. Obama has proposed a windfall profits tax on U.S. oil companies to pay for a $1,000 stimulus check to be sent to the taxpayers and non-taxpayers alike. I contend that the oil companies are already paying a windfall profits tax. They are paying taxes, local and federal combined of over three times the net profit they are making. I’m not referring to the gas tax we pay at the pump.
Someone with access to the details could find the federal taxes that were paid by American oil companies in 2006 and compare that figure to those same taxes paid in 2007. The difference is surely due in part to the fact that their gross profits are much higher year over year. Therefore, they are paying much more due to the windfall.
Take that amount, much like Gov. Palin did in Alaska, divide it up, and send out the checks. No additional tax is needed.
By the way, the oil companies' margins are down from about 10% to less than 8% in some cases. By all rights they should be able to maintain their margins. These margins determine, in part, how many of our retirement accounts are going to look if you are invested in mutual funds through a 401-K or other plan.
Mike Thompson
mikethompson@catt.com
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It should be noted that Exxon's return on equity has risen to over 33%, now nearly 50% higher than the oil industry average of 22.7%. Return on stockholders equity is a better measuring stick than profit margin, as that is what investors and mutual funds for your 401K look at look for.
Exxon, and the oil industry as a whole, have made record profits and record profit returns during this oil crisis. Don't feel too sorry for them. And don't forget, Republicans have had total control in six of the past eight years - the White House, the Senate and the Congress. They have been in control of the White House for 20 of the last 28 years.
Republicans had their chance for real change - Ron Paul. They wouldn't give him the time of day. They didn't really want change like eliminating the income taxes on Exxon and the public, a better foreign policy, or better domestic security. McCain or Obama will leave us with four more years of the same. Republicans didn't even like McCain until his pretty running mate came on board.
Fred Paynter
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Mr. Paynter,
Just remember that the Fed gets ~$4,000/second from Exxon. Exxon earns $1,400/second.
Also, remember that their expenses are huge.
Brian Foley
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In 2007, Exxon paid $30 billion in taxes. They paid a tax rate of 41%. In 2004, there were 130 million tax returns filed in the U.S. and Exxon paid more in taxes than the bottom 50% combined. One company paid more in taxes than 65 million filers. In 2006 they reported $67.4 billion in taxable income and paid $27.9 billion in taxes.
Exxon is an international company that brings many taxable dollars to the U.S. from around the world. What sort of tax rate would be fair? What exactly is a windfall tax? How much profit is too much?
I guess the Miller Beer distributors will have to pay windfall profits if global warming increases beer consumption over the next few years. How about MDs who see more patients in an unusually active flu season? More importantly, let's go after the scooter companies whose business has shot through the roof due to the price of gasoline, those guys must be killing it now because I see scooters everywhere. Less work more pay.
Before you jump on the bandwagon for socialism, I suggest you google "successful socialist societies".
Carroll Baker
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