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Wednesday, April 02, 2008

Windfall Profits?  Gov. Revenues From Oil Exceed Oil Industry Profits In All But Last Three Years

Time for a windfall profits tax on...government?

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Recent data from the Energy Information Administration shows that since 1981—the first year of the Windfall Profits Tax—total taxes from all oil industry sources exceeded the combined profits of all companies in every year but the past three. Between 1981 and 2006, government collected $1.65 trillion in total taxes after adjusting for inflation. That is 65 percent more than the combined earnings of the 16 largest domestic oil companies during the same period.

And just think, it isn’t really the oil companies who are paying these taxes but rather you and me.  For all businesses, taxation is an expense.  And like all expenses, it is built into the price of the goods or services that business offers.

Comments

Another big lie from Comrade Hillary: “We want to roll back the “tax breaks” on the oil companies.” Translation: “We’re raising taxes on the oil companies, and your gas prices are going up, totally due to govt greed, although we will blame it on the oil companies when they continue to make money.”


If you don’t know by now, don’t mess with it.

robert108 on April 2, 2008 at 09:59 am

The economic facts are that the oil companies haven’t increased their profit margin, so their total profits have increased because they are selling more product.
If you want lower gas prices, allow easier entry into the market by rolling back restrictive enviro regulations.  This will increase supply, which will lower prices.


If you don’t know by now, don’t mess with it.

robert108 on April 2, 2008 at 10:03 am

We should get tax cuts from all of this oil revenue rolling in, both at the federal level as well as in my state of North Dakota.

But the greedy government types want to keep it to expand their power.

Who’s greedier, Exxon making a paltry 40 billion or the Federal Government making 50 times that.

At least I get something from Exxon.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on April 2, 2008 at 11:16 am

At least I get something from Exxon.

Exactly.  Without profits, there would be no oil and gasoline.


If you don’t know by now, don’t mess with it.

robert108 on April 2, 2008 at 11:36 am

I LOVED Edwin’s line about"unjustified" profits. Every single person in elected office is making “unjustified” profits. Especially members of Congress.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on April 2, 2008 at 05:38 pm
Avatar for Urainium238

I love the logic: “if we make sure that the compaines don’t make a profit, the price will go down.” Did Hillary go to the Robert Mugabe School of Economics?

Urainium238 on April 2, 2008 at 11:26 pm
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