I love reading peoples rants about the big mean nasty oil companies.

Their profit margin, for the most part, is a little under 9%. Pretty modest profit margin IMO.

 

Oil Industry Taxes Have Outpaced Oil Industry Profits Since 1977.

I love reading peoples rants about the big mean nasty oil companies.

Their profit margin, for the most part, is a little under 9%. Pretty modest profit margin IMO.

 

Oil Industry Taxes Have Outpaced Oil Industry Profits Since 1977.

 

How much does that 9% equal? Billions?

 

I love it when people defend the big oil companies, like they're struggling for money.

How much does that 9% equal? Billions?

 

I love it when people defend the big oil companies, like they're struggling for money.

What difference does the amount make? What if ExxonMobil divided up into 50 companies, each with a profit of $812 million? Would you still have a problem with how much they make?

What difference does the amount make? What if ExxonMobil divided up into 50 companies, each with a profit of $812 million? Would you still have a problem with how much they make?

 

It doesn't matter what percentage of profit you are making...

 

A billion dollars is a billion dollars...PROFIT.

It doesn't matter what percentage of profit you are making...

 

A billion dollars is a billion dollars...PROFIT.

If you raise taxes on profits, then entrepreneurs are less likely to take financial risks to try to attain profits, because it simply isn't worth as much to them. If entrepreneurs are not willing to take chances, then the one of the biggest things that puts capitalism ahead of communism (if not in terms of equity, at least in effficiency)- INNOVATION- slows. And the benefits that new products, new drugs, new investment projects, etc. that keep the standard of life in this country exponentially higher than other countries (even for our poor) would slowly dwindle.

Direct sales tax on gasoline (at a set cents per gallon rate) and corporate tax are two different things.

I never said anything to the contrary. Both taxes add to the cost of a gallon of gasoline as will any additional taxes that Democrats impose.

 

Again, please tell me why a company that makes $35 billion in net income needs special tax breaks to make the investments required to stay in business. And what guarantee do these companies give that they will make any incremental investment as a result of these tax breaks?

Would it make you feel any better if Exxon-Mobile split up into 50 smaller companies, each making less than $1 billion/year in profits? Some of the largest companies in the world are oil companies. Oil companies are among the world's largest employers, they are among the world's leading taxpayers, and their profit margins are modest compared to many industries.

 

As for offering incentives for increasing the amount of oil on the world market, the logic seems self-explanatory to me. However, perhaps you are right. Maybe it makes no sense to provide tax breaks for exploration as long as Democrats are determined not to allow new reserves to be tapped.

What difference does the amount make? What if ExxonMobil divided up into 50 companies, each with a profit of $812 million? Would you still have a problem with how much they make?

I hadn't read your 50 company logic when I posted. :lol: I would say that great minds think alike - but I am also modest.

It doesn't matter what percentage of profit you are making...

 

A billion dollars is a billion dollars...PROFIT.

You don't go into business to lose money.

It doesn't matter what percentage of profit you are making...

 

A billion dollars is a billion dollars...PROFIT.

If all corporations in the US combined to make a billion dollars, how many people do you think would be investing in US companies? If you have money and can invest it in Microsoft and make a return on your investment of 30% versus Marathon at 10%, where would you put your money.?

 

When you collect interest on a bond or savings account, do you really care that somebody who invested 100 times as much made 100 times as much money, as long as you collect your own interest?

 

Most oil company stocks are not owned by billionaires or even millionaires. Most shares are owned by millions of average Americans.

How much does that 9% equal? Billions?

 

I love it when people defend the big oil companies, like they're struggling for money.

:lol:

 

Are you serious? Why the jealousy of the oil companies? There are plenty of other businesses that have a much larger profit margin than oil companies do. Do you hate all of them too?

If all corporations in the US combined to make a billion dollars, how many people do you think would be investing in US companies? If you have money and can invest it in Microsoft and make a return on your investment of 30% versus Marathon at 10%, where would you put your money.?

 

When you collect interest on a bond or savings account, do you really care that somebody who invested 100 times as much made 100 times as much money, as long as you collect your own interest?

 

Most oil company stocks are not owned by billionaires or even millionaires. Most shares are owned by millions of average Americans.

:thumb:

 

And how DARE them make a profit! :lol:

:lol:

 

Are you serious? Why the jealousy of the oil companies? There are plenty of other businesses that have a much larger profit margin than oil companies do. Do you hate all of them too?

 

Think before you type. Where did I even insinuate that I "hate" oil companies?

For me, the only legitimate argument for ending a tax credit or otherwise raising taxes on oil companies is from the angle that the government has essentially created an oligopoly for the oil companies which have allowed them to reap such high profits with little competition. The government has produced the impenetrable barrier to entry in this market, one that would probably make an anti-trust case if it were the oil companies themselves doing it.

 

However, if anyone wants to complain about high gas prices, a tax hike isn’t going to produce the desired effect. Simply purchasing less gas, as well as purchasing alternatives to gas will be the most effective solution. Until Americans are willing to reduce the amount of fuel consumed or spend their money on alternatives, they will continue to pay what the market demands at the pump. Despite the braggadocio Congress will undoubtedly exercise after "grilling" these oil executives, gas prices will continue to rise until consumers demand less of it.

Exxon better pump a few billion into the McCain fund... if a dem gets in office they are going to attack big oil with a punch to the face.

 

Very interesting campaign, gas prices is about 40% of most peoples concerns. I wanna see what happens between 2009-2012, if they don't get the gas down I wouldn't get comfy.

Let's raise taxes on the oil companies, AND expect them to lower prices.

 

Pick one or the other, you can't have both. Personally, I believe give them the tax breaks. The cost of their inputs are rising very quickly (due to rising prices from OPEC). I believe that alternative fuels will take over when the technology has been developed, due to the fact that rising oil prices will make it cost-effective. There is not much you can do to speed that up (it will happen naturally the more OPEC raises prices).

 

Then again, I am for almost all tax breaks. :lol: Seriously though, the only real taxes that I kind of agree with are ones on industries in which it is easy to gain a monopoly of a scarce natural resource, but Big Oil doesn't have a monopoly- OPEC does.

 

 

I personally think the US gov't may be stalling on alternative fuels, while preaching about there benefits and necessity as well. Giving those deeply vested in them a chance to look into alternative fuels and not hurt the US economy by a bunch of million or billionaire or folks going broke when the US stops depending on oil.