Government's Three-Month Take $17,000,000,000
- 04-28-2006, 10:18 AM
Government's Three-Month Take $17,000,000,000
This is really going to make people mad. The oil companies are rejecting these accusations that they are gouging. That's going to really make 'em mad. When Senator Durbin accuses you of gouging, you better agree with it or they're going to do even more than want to see your books and force you to give your profits away. We've got the numbers here for ConocoPhillips. Their profit in the first quarter was $3.29 billion compared to ExxonMobil's $8.4 billion, and so we can figure that the federal government made about -- let's round this up to $3.3 billion, so $6.6 billion on the gasoline. In fact, you know what? I'm shooting low on this. I'm going to start this again.
ExxonMobil's profit was $8.4 billion in the first quarter, and there's nine cents per gallon of profit in the sale of a gallon of gasoline. So it's easy to figure. The federal taxes are 18 cents, so the feds get twice what the oil companies get in their profits. So the $8.4 billion profit for ExxonMobil translates to $16.8 billion that the feds get. But ExxonMobil then pays taxes on their profits. ExxonMobil pays taxes, so that $16.8 billion is actually larger by the time Exxon pays its taxes; same thing with ConocoPhillips -- and, of course, the drive-by media is playing right along with this because the profit is one thing. But it's the profit margin that you actually need to look at, and that's where you can find gouging.
Now, the first quarter 2004 profit margin for most of big oil is about 8%. This first quarter, it was 9.4%. The first quarter 2004 was about 8% and the first quarter this year, 2006, is 9.4% and that's an increase of about 14% in the profit margin with an increase in revenue of 24%. They're taking in a lot more money, but their expenses eat up almost half the gain. So if you wanted to suggest that they're gouging, you would have to find evidence that their profit margin is skyrocketing, and the profit margin is not. Just looking at the number of dollars in the raw profit, you know, that's the simpleton way, and that's the way everybody is all ticked off and everything.
It's a big business, for crying out loud. What are they doing with all the profits? They give it to the executives when they retire is what they do with all the profits. I don't know what they do. They pay it to their stockholders. They're publicly traded. You know, Exxon shares, this profit adds a buck thirty-seven to the average Exxon shareholder per share. That's one of the things they do with it. I'll tell you, economics education is so woefully inept.
It's not just ExxonMobil and big oil that are experiencing great economies and lots of profit. The economy is good, a lot of companies have profit. Microsoft's profit's are 38%, and nobody cares. Don't give me this you don't need Microsoft every day business like you need oil. It's not the point. Just try these headlines. "GlaxoSmithKlein Profits Surge in First Quarter." Big Drug! "Siemens Beats Expectations in Second Quarter, Eyes $1.86 Billion US deal." Jackpot! "Harrah's First Quarter Income Jumps 75%." "Foreign Businesses Still Gung-Ho About USA, CEOs Say." This is in USA Today.
There's all kinds of great economic news out there, but "a Senate committee on Wednesday announced an investigation into taxes paid by Big Oil and asked the IRS for the company's tax returns. A Senate finance committee promised a comprehensive review of the federal taxes paid by oil companies on their record profits last year. Senator Charles Grassley (R-IA) the committee's chairman, said the panel was concerned about high profits and executive compensation at oil companies. 'I want to make sure the oil companies aren't taking a speed pass by the tax man.'" It embarrasses me. It just embarrasses me that Republicans are leading the effort, and it's just pure election year politics.
- 04-28-2006, 11:58 AM
Well Tricy D*I*C*K Durbin Was responsible for trying to amend the DSHEA, and failed, this guy I effin hate, and he is one of the reasons Ephedra got pulled from the market place, what a piece of work. I hate Rush, but I am glad he nailed this prick.
- 04-28-2006, 12:01 PM
04-28-2006, 01:58 PM
rush is usally right 90% of the time.. i actually think there is a study done on it lol i have to find it
04-29-2006, 01:07 PM
04-29-2006, 09:55 PM
I don't deny that oil companies make alot of money from gasoline, but they make more money from developing their oil fields and actually pumping the oil out of the ground. When you see the price per a barrel reaching the high $60s- low $70s per barrel that is just pure profit. I don't know the numbers, but the price to pump oil does not increase. Before the original Bush oil was selling at around $18/barrel and they still made money. The oil industry operates off of scare tactics. The government only adds to the problem with the high taxation.
04-30-2006, 12:48 PM
the oil companies are not making any more money than they ever really were. In actuality we are paying less per gal. than in the 80's.. a way to stop this problem is to make our money MONEY once again.. backed by gold etc... having money is only currency leaves it with only the bottom to go...
example.. the price of the 50,000 house in 1975 is not really 1.3million.... the house did not go up in value. the amount of dollars that is needed to buy the house did
04-30-2006, 04:58 PM
Good point about money. The US dollar is weakening. In the past few years, Canadian dollars have really strengthened and so has the Japanese yen. I suppose its great if you're in Japan or Canada but I wouldn't doubt the weakened dollar is playing a role in the higher costs of living. In fact, its pretty obvious that its taking place.
04-30-2006, 05:46 PM
If I were involved with setting international monetary policy and trying to maintain the dollars value I'd be more concerned with what the EU could potentially do to increase the strength of the Euro. They are positioning themselves to become very dominant in the currency market.
04-30-2006, 08:29 PM
Why be concerned about Europe? We did it to ourselves and going from our actions in the past several years (note: as this was going on), we chose to kept going our usual path as the USD weakens.Originally Posted by Spartan117
We should be concerned about America and how our reckless spending is doing more damage than perceived.
04-30-2006, 08:39 PM
I said international monetary policy. While our spending policies does effect the value of our dollar there are many other aspects that influence the value. Europe is becoming a strong presence in the global community especially in terms of currency. To ignore that in order to concentrate on domestic policy would be foolish and would kill the dollar.
05-01-2006, 01:32 PM
Just to play devil's advocate, executive salaries and bonuses are deducted from gross income before profit is calculated. The executives salaries are also deducted from the taxable income of the company as are all employee salaries and bonuses. So, while the companies are maintaining an aparent 8-9% profit margin, the top executives are seeing phenominal salary and bonus increases.
Interestingly enough, the peons at the bottom of the oil companies aren't seeing a penny in wage increases or anything of the like.
Anyway, something to think about. The truth is, neither gross income nor profits is a valid indicator of how a company is doing.
05-01-2006, 04:12 PM
05-03-2006, 03:12 PM
not that anyone here has said this.. but i keep hearing people say that big oil co's are making the price of crude oil.. they don't.. the oil producing nations do that.. so exxon etc has to pay the 70 some what bucks per...
05-03-2006, 04:49 PM
Maynard, the oil co.'s do buy, develop, and explore for these oil fields. At the very least they partner with foreign companies to extract oil from these fields.
05-03-2006, 08:31 PM
correct.. we are always looking for oil closer to home.( even though we cant drill in anything that seems to have oil due to the Flopping Fluker Bird). but the oil in question for most is not the oil found by american companies.. its saudi etc.
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