Originally Posted by registerthis
It's not outrageous in terms of a %, no, but keep in mind these are sales of BILLIONS of dollars. Let's say, for the sake of argument, there were $10 billion in sales during 2Q 2005 (I'm sure it's much higher than that, but this is all play money anyway, right?) That is $800 million profit in one quarter--and, like I said, I'm certain that it's higher than that.
So, it begs the question, what on Earth do these companies need a tax break for? That's what baffles me.
Tax break? The numbers I provided were based on about a 40% tax rate, and that's just for the Feds. I don't imagine you would want your personal income to be paid at that rate, would you?
And regardless of how many billions we are talking about, at 8%, Exxon is taking in a lot of money, true, but most of it is going right back out into the economy. If you want to complain about oil prices, go talk to our friends in Kuwait, whose government is so rich that many people live well off of government subsidy. Or any of the other OPEC member nations. They control the supply of oil and therefore the prices in the world. Our domestic companies are at their mercy just about as much as we are as individuals.