Oil Companies & Windfall Taxes
I have a tale of two companies for you today. One is known for it's 'obscene' profits and the other is known for it's hip technology and coolness. I took a look at the latest financials for these companies...
| Income Statement | Company 1 | Company 2 | |
|---|---|---|---|
| Pre-Tax Profit Margin | 17.8% | 14.5% | |
| Income Tax % | 41.1% | 32% | |
| Post-Tax Profit Margin | 10.5% | 9.8% |
So both companies have net after-tax income of about 10% of sales. Is either company under-taxed? Is either company on 'Corporate Welfare'? Which company should be investigated by congress?
Exxon-Mobile is Company 1 and Apple Computer is Company 2. Still think we should levy a tax on Exxon? What if I told you that CalPERS (the California Public Employee Pension Fund) owned $1.7 billion of Exxon stock?
The Left loves to demonize corporate profits but they often neglect the fact that normal people like you and I are the owners and beneficiaries of those supposedly obscene profits. Furthermore, those companies employ a bunch of people (106,000 for Exxon) with good, high-paying jobs. If you punish profitable companies with extra taxes, all you're really doing is extracting more money from tax-paying citizens so that Congress can build more Bridges To Nowhere.
posted by Early Riser @ 6:03 AM
1 comments
1 Comments:
I agree. These Democrats and liberals are accusing the oil companies of price gouging, when really it is supply and demand that is giving them huge profits. Windfall profits taxes will not do anything to gasoline prices. Price ceilings on gasoline will cause shortages. They are not attacking the real cause of high gasoline prices - peak oil. Better would be to encourage these companies to use their profits for developing alternative energy sources. The one tax hike they won't consider is one on gasoline, when actually such a tax, combined with cutting other taxes, might help in curbing demand.
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