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.