posted on Oct, 10 2012 @ 07:39 PM
reply to post by neo96
I'll have to address the subsidy argument later - as time permits. For now? A study.
Of the top 500 most profitable companies in the world,
three, of the top five
are oil companies.
A quick look at one of those companies, number three on the list - Exxon Mobile
consider the following numbers:
$ millions % change from 2009
Revenues 354,674.0 24.6
Profits 30,460.0 58.0
Assets 302,510.0 --
Stockholders' equity 146,839.0
Exxon/Mobile is also number three in the overall list of largest corporations.
During that fiscal year, while making 58% profits ( about thirty five billion ) - minus the hype from industry based spin doctors - here is the
"They are counting taxes they don't pay," said Bob McIntyre, a director at Citizens for Tax Justice. "Payroll taxes are on the workers, sales
taxes are on the consumers."
Throwing in those seemingly superfluous tax figures seems like an unnecessary move, especially considering that even without them the income tax the
company pays is pretty high.
Exxon's average effective U.S. income tax rate over the last six years is about 29%, according to the firm's security filings and an interview with a
top Exxon tax lawyer. It's one of the highest rates for any industry.
Jeffers said the company highlighted its overall tax contributions because it's important for people to see just how much the firm and its activities
add to the overall tax rolls.
Exxon's income tax rate is below the 35% rate mandated by corporate tax law, but it's widely believed most U.S. companies don't pay that rate thanks
to generous loopholes in the tax code.
And the following source
Exxon Mobil registered an average 17.6 percent federal effective corporate tax rate on its annual earnings in the three years spanning 2008 to
2010. Its average domestic profits exceeded $6.8 billion. And as a 2011 Citizens for Tax Justice report points out:
Over the past two years, ExxonMobil reported $9,910 million in pretax U.S. profits. But it enjoyed so many tax subsidies that its federal income tax
bill was only $39 million—a tax rate of only 0.4 percent.
Even when Exxon Mobil had a record profit of $40 billion in 2008 due to record oil prices it had only a 31 percent effective tax rate. That’s 13
percent lower than the maximum 35 percent despite being Exxon Mobil’s fifth year as the top corporate earner in Fortune 500’s annual listing. The
company paid no taxes at all to the U.S. federal government in 2009 on its domestic profits of nearly $2.6 billion. It appears that they avoided the
tax man that year by legally funneling their profits through wholly owned subsidiaries in countries like the Cayman Islands, and reinvesting their
If you abhor the poor preying upon the system, how can you abet the obscenely wealthy doing so? Is it less of a sin if the perpetrator has lobbyists
and creative accounting practices?
Seems to me like you'd love Robin Hood... if he were rich. But decry him were he poor.
edit on 10/10/12 by Hefficide because: BB tag apocalypse