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Exxon again posts record profits

Discussion in 'U.S. Politics' started by Popeye, Jul 31, 2008.

  1. Popeye

    Popeye Active Member

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    The Republican Party's best friend Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting a net income of $11.68 billion. That works out to $1,485.55 a second.

    Had enough yet? Exxon and other oil companies get millions in tax breaks while posting record profits every time you turn around. Something has to be done and I don't mean giving them free rein to drill anywhere they please. Congressional Democrats said they are having a conference later in the day to call for an end to those tax breaks. Obama himself wants to tax oil companies at a special rate every time crude goes over $80 a barrel. I say about time.

    http://money.cnn.com/2008/07/31/news/companies/exxon_profits/index.htm?eref=rss_topstories
     
  2. BigRob

    BigRob Well-Known Member

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    If you enact that tax if oil goes over $80 a barrel, that will simply get passed off on the consumer should oil be above that level, which will hurt the Middle Class.

    Exxon pays taxes at a rate of 41% on its taxable income, which is outrageous to begin with.

    Exxon's tax bill in 2007 exceeded $30,000,000,000 dollars.

    Exxon makes a much smaller percent in return that other large companies in the technology sector. We are basically taxing Exxon for being big?

    The government, who adds nothing to the drilling, development, shipping, and sale of oil, makes more per gallon of gas sold than Exxon does.
     
  3. The Scotsman

    The Scotsman Well-Known Member

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    In the UK there are debates about applying "wind-fall" taxes against the energy companies that post "grotesque" profits - effectively top slicing their profits.

    http://www.telegraph.co.uk/news/2480011/Fuel-profits-make-grotesque-profits.html
     
  4. SW85

    SW85 New Member

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    I have no problem with companies making money. Similarly I think people are unreasonable to expect the price of oil to stay fixed at pre-2000 levels when the price of everything else has risen according to inflation.

    But I also have no problem on making tax breaks contingent on the fulfillment of certain goals of public interest, and moreover having these breaks written down in the form of a legally binding contract. (i.e., you'll have to lower gas prices to keep receiving tax breaks, and if you take the tax breaks without lowering gas prices, we'll take you to court for breach of contract).

    Same goal and same end, without the ham-handed government micro-management.
     
  5. BigRob

    BigRob Well-Known Member

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    Agreed

    Exxon does not set the price of gas, asking them to lower the price is unreasonable. I think the more business unfriendly we become in this country, it is no surprise that so many corporations are moving overseas.
     
  6. GenSeneca

    GenSeneca Well-Known Member

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    Congratulations to Exxon, they have EARNED their money... Unlike Congress.

    Exxon does 70% of its Business OVERSEAS, so they are truly BRINGING HOME THE BACON.

    If you think raising TAXES on AMERICAN oil companies is going to drop the price of oil on THE WORLD MARKET, your nuckin futs! No wonder you vote Democrat...
     
  7. The Scotsman

    The Scotsman Well-Known Member

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    That's pretty much what I think as well.

    In the UK we have this attitude that success is somehow "rude" you should make profits but not too much! Its baffling but that's the UK for you.
     
  8. Popeye

    Popeye Active Member

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    Congratulations for what? To me it's very simple, a company making that kind of money shouldn't be getting tax breaks.
     
  9. GenSeneca

    GenSeneca Well-Known Member

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    Exxon ALONE pays MORE IN TAXES than the bottom 50% of American taxpayers...

    Exxon pays BILLIONS in taxes and gets an R&D tax break of MAYBE a couple million... Other taxpayers get to have write offs, Exxon should be NO different no matter how much money they make - They pay MORE than their "fair share"

    For Exxon:
    net income of $11.68 billion. That works out to $1,485.55 a second.
    US Gov cut from Exxon:
    PURE profit (they do NO work) of around 33 Billion (Big Oil pays 3 times in taxes what they earn in profit) and that works out to around: $4500.00 a second.

    And thats not even counting the Royalties, land leases, property taxes and many other forms of Gov collection from oil companies... Once you add those in, Big Gov makes 4.5 times as much "Profit" as Big Oil on the sale of the SAME product.

    Government is the one making "Obscene Profits" from the sale of oil. Letting those overtaxed companies write off R&D is a good thing... SUBSIDIZING Ethanol to the tune of $1.38 PER GALLON is not.
     
  10. The Scotsman

    The Scotsman Well-Known Member

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    .....I guess there are plenty of countries that Exxon-Mobile could consider moving their corporate HQ into - certainly the UK would welcome their tax payments!
     
  11. Libsmasher

    Libsmasher New Member

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    See how the fringe left wingnut mind "works"? :D

    Does a company like Exxon make big profits? They biitch.

    Does a company like Fannie Mae make big losses? They biitch.

    Their attitude toward corporations is completely irrational, and ultimately grounded in their hatred for free enterprise - they want government bureaucrats to run everything. Historically, we can see what you get with that - the soviet union. :rolleyes:
     
  12. SW85

    SW85 New Member

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    No, they are not the sole factor involved in determining the cost of oil. But they are certainly one of them; they are not NPO's, after all.

    Ideally, no business would get any kind of government handout. But since we don't live in an ideal world, it is at least worth it to make sure they don't get something for nothing. I'd prefer the something we get back be done voluntarily, i.e., through contract law, rather than the officious meddling the left is always proposing.
     
  13. Andy

    Andy Well-Known Member

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    But even the logic here is counter inutitive. Another reason to not vote for Obama. If they tax the oil, who pays that tax? WE DO! We pay all taxes a corporation pays. So you are effectively saying "I can't wait for Obama to tax ME!".

    But even beyond that, this doesn't make any logical sense. Do you want the price of Oil to come down? If yes... then who needs money to invest in more oil wells, oil refineries, and so on? Oil companies! If we take the profits away from the people investing in increasing the oil supply, thereby lowing the price, then supply will not increase and prices will remain high. This is BRILLIANT!
     
  14. Andy

    Andy Well-Known Member

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    As far as I know... and please do correct me or better yet, explain to me how I am wrong, Oil is sold on a world commodities market. The market determines the price of the oil. Exxon, or any other company, has absolutely no say in the matter. If Exxon says "we're not paying more than $80 a barrel!" they would simply sell to someone who will pay.

    If you know otherwise, by all means.
     
  15. UShadItComing

    UShadItComing New Member

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    Does the USD follow oil prices or do oil prices follow the USD?
     
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