Can we just, overthrow oil companies???

13»

Comments

  • farfromglorified
    farfromglorified Posts: 5,700
    SundaySilence wrote:
    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.
  • farfromglorified
    farfromglorified Posts: 5,700
    SundaySilence wrote:
    Yes, I noticed. I suspect its worse after 8 years of oilmen in the executive branch. If you have another source please share.

    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%

    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.

Categories