As a result of federal corporate income tax credits and deductions oil companies pay an effective income tax rate of 11%. The non-oil industry average is 18%.
But is that really a problem with the oil company or a problem with your government. Plus I don't know about you but when I do my taxes I claim every possible deduction I can make, why wouldn't I expect anyone else to do the same? I mean honestly if I got my tax package next year and the government told me I only had to pay like 11% income tax, I wouldn't offer to pay more. Would you, would anyone?
But is that really a problem with the oil company or a problem with your government. Plus I don't know about you but when I do my taxes I claim every possible deduction I can make, why wouldn't I expect anyone else to do the same? I mean honestly if I got my tax package next year and the government told me I only had to pay like 11% income tax, I wouldn't offer to pay more. Would you, would anyone?
Of course its a problem with government. The only responsibility oil companies have is to maximize profits.
Of course its a problem with government. The only responsibility oil companies have is to maximize profits.
So if the government tells them they only have to pay 11% tax I don't really see how you can hold it against them. Like I said I have never offered to pay more tax than I have been asked to. Besides that is only US taxes, which doesn't really account for the fact that these are global companies. In Canada we have been able to have huge budget surpluses the last few years thanks to tax revenue from Oil companies.
I'm not going to discuss the dictionary. Substitute disproportionate if it will help you grasp the point.
LOL...how is it "disproportionate" when Exxon alone paid $9,000,000,000 in income tax in a single quarter this year, not to mention the dollars extracted via the gas tax???
I'm not sure where you got your data, but the effective tax rates on the major US oil companies were in the 40s, not the 10s. For instance, people screamed about Exxon's $11,000,000,000 profits, but didn't want to mention their $9,000,000,000 in income taxes....
LOL...how is it "disproportionate" when Exxon alone paid $9,000,000,000 in income tax in a single quarter this year, not to mention the dollars extracted via the gas tax???
I'm not sure where you got your data, but the effective tax rates on the major US oil companies were in the 40s, not the 10s. For instance, people screamed about Exxon's $11,000,000,000 profits, but didn't want to mention their $9,000,000,000 in income taxes....
It's called people being brainless sheep. They just follow what the people in their party say instead of thinking and researching for themselves.
"If you're not living on the edge you're taking up too much room."
Gambling=a taxation on stupidity.
Remember, you can walk anywhere, as long as you have the time.
LOL...how is it "disproportionate" when Exxon alone paid $9,000,000,000 in income tax in a single quarter this year, not to mention the dollars extracted via the gas tax???
I'm not sure where you got your data, but the effective tax rates on the major US oil companies were in the 40s, not the 10s. For instance, people screamed about Exxon's $11,000,000,000 profits, but didn't want to mention their $9,000,000,000 in income taxes....
Surely they are not alone, but they are more effective than many due to the influence they weild as a result of their bankroll.
The government itself is far more adept at the things you mentioned than any oil company is. Furthermore, the agriculture industry has done even better in those terms. I'm certainly not defending the oil industry in terms of subsidies and undue influence -- they've gone way too far. However, it seems a bit silly to single out the oil industry for doing this.
Exxon Mobil
Taxes: $23.3
Profit: $36.1
Effective tax rate: 39.2%
Total
Taxes: $44.3
Profit: $63.8
Effective tax rate: 41.0%
In 1982 congress passed the oil depletion allowance allowing owners of oil in the ground to count as income only 87.5% of their oil royalities.
These allowances have come and gone numerous times, and typically only apply to oil drilling on Federal lands. Regardless, this is a special tax paid outside their income tax. I think you're misunderstanding this and thinking that oil companies pay no tax on 12.5% of their oil revenues. That is not the case.
Comments
But is that really a problem with the oil company or a problem with your government. Plus I don't know about you but when I do my taxes I claim every possible deduction I can make, why wouldn't I expect anyone else to do the same? I mean honestly if I got my tax package next year and the government told me I only had to pay like 11% income tax, I wouldn't offer to pay more. Would you, would anyone?
I'm not going to discuss the dictionary. Substitute disproportionate if it will help you grasp the point.
Of course its a problem with government. The only responsibility oil companies have is to maximize profits.
So if the government tells them they only have to pay 11% tax I don't really see how you can hold it against them. Like I said I have never offered to pay more tax than I have been asked to. Besides that is only US taxes, which doesn't really account for the fact that these are global companies. In Canada we have been able to have huge budget surpluses the last few years thanks to tax revenue from Oil companies.
LOL...how is it "disproportionate" when Exxon alone paid $9,000,000,000 in income tax in a single quarter this year, not to mention the dollars extracted via the gas tax???
I'm not sure where you got your data, but the effective tax rates on the major US oil companies were in the 40s, not the 10s. For instance, people screamed about Exxon's $11,000,000,000 profits, but didn't want to mention their $9,000,000,000 in income taxes....
Gambling=a taxation on stupidity.
Remember, you can walk anywhere, as long as you have the time.
http://www.ryanmontbleauband.com/
http://www.myspace.com/jessedee
http://www.ucsusa.org/clean_vehicles/fuel_economy/subsidizing-big-oil.html
LOL...ballsy choice of sources there. Anyway, did you notice that the data you're citing is from nearly 20 years ago?
Yes, I noticed. I suspect its worse after 8 years of oilmen in the executive branch. If you have another source please share.
In 1982 congress passed the oil depletion allowance allowing owners of oil in the ground to count as income only 87.5% of their oil royalities.
Surely they are not alone, but they are more effective than many due to the influence they weild as a result of their bankroll.
The government itself is far more adept at the things you mentioned than any oil company is. Furthermore, the agriculture industry has done even better in those terms. I'm certainly not defending the oil industry in terms of subsidies and undue influence -- they've gone way too far. However, it seems a bit silly to single out the oil industry for doing this.
You suspect wrong. If you look at the 2005 financial records of the 3 biggest oil companies, you'll find this data:
ConocoPhillips
Taxes: $9.9
Profit: $13.5
Effective tax rate: 42.1%
Chevron
Taxes: $11.1
Proft: $14.1
Effective tax rate: 44.0%
Exxon Mobil
Taxes: $23.3
Profit: $36.1
Effective tax rate: 39.2%
Total
Taxes: $44.3
Profit: $63.8
Effective tax rate: 41.0%
These allowances have come and gone numerous times, and typically only apply to oil drilling on Federal lands. Regardless, this is a special tax paid outside their income tax. I think you're misunderstanding this and thinking that oil companies pay no tax on 12.5% of their oil revenues. That is not the case.