Exxon Posts Record $32.36 Billion Tax Payment

July 31, 2008 | Mark J Perry

[Entrepreneur]

This is from Carpe Diem: Professor Mark J. Perry's Blog for Economics and Finance's blog...

CNN's headline: "Exxon posts record $11.68 billion profit."

According to CNN, Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter. That profit works out to $1,485.55 a second.

Buried in the story we also find that "In addition to making hefty profits, Exxon also had a hefty tax bill. Worldwide, the company paid $10.5 billion in income taxes in the second quarter, $9.5 billion in sales taxes, and over $12 billion in what it called 'other taxes.'"

MP: In other words, Exxon Mobil paid (or at least collected) $32.361 billion in taxes in the second quarter, which works out to $4,114 in taxes per second. Another way to look at it - Exxon paid (or collected) almost $3 in taxes ($32.361 billion) for every $1 in profits ($11.68 billion), see chart above.

[Entrepreneur]

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[EyeGuy]

That pays for a lot of overseas 5 star resort senatorial junkets, abysmally unproductive college professor salaries (and benefits), thick T-Bone steaks under the food stamp program, and bound-for-the-wrecking ball, HUD housing developments.

[padre35]

Very clever...spot on as well

[airborne]

Lesson from the media - Never allow the truth to interfere with the leftist agenda!

[Dilbert San Diego]

The taxes paid by a big profitable company like Exxon don’t matter to the Dems. That’s just a given that they should be paying their taxes. They don’t want Exxon to make a profit. They don’t really believe in capitalism. They want Exxon and other oil companies to drill, transport, and refine the oil as a public service.

I think there was a thread going which indicated that Exxon’s profits work out to about 15 cents a gallon? Maybe someone knows better, but the point is, if they levy a windfall profits tax of 15 cents a gallon, then Exxon has no profits left to reinvest or pay out as dividends, which in turn hurts their stock price, which in turn hurts investors, which in turn hurts the overall economy...............

So on the one hand, Dems. want cheaper gas, but on the other hand, they like higher cost gas to encourage conservation. And they like solar panels and windmills, but not if they block Ted Kennedy’s view.

[Cobra64]

Someone finally woke up and presented a graphical depiction comparing and contrasting what the government confiscates from a Big Eeeevil Oil company versus what it is able to reinvest back into the company, and pay investor dividends.

[LibFreeOrDie]

Related thread (not a duplicate): “Near-Secret: Exxon’s Taxes Almost 3x As Much As Profits”

http://www.freerepublic.com/focus/f-news/2055554/posts

[lewislynn]

That pays for a lot of overseas 5 star resort senatorial junkets, abysmally unproductive college professor salaries (and benefits), thick T-Bone steaks under the food stamp program, and bound-for-the-wrecking ball, HUD housing developments

Worldwide, the company paid $10.5 billion in income taxes in the second quarter, $9.5 billion in sales taxes, and over $12 billion in what it called 'other taxes.'"

[Constitutional Patriot]

whoa...that means Uncle Sam (and Aunt Pelosi) took Exxon for about $100B in taxes.

Yeah...They should really sock it to them w/ a windfall profits tax....

[Constitutional Patriot]

woops...read the headline too fast...

Same idea though!

[Bender2]

Exxon is just not... paying their fair share. My poor folks need all their money!

[BunnySlippers]

Bump

[EyeGuy]

“Worldwide...”

OK.

So IN ADDITION to the goodies I mentioned, Exxon’s productivity will also help fianace countless soft bureaucratic posts in the socialist nightmare that is the European Union.

[EyeGuy]

“They don’t want Exxon to make a profit. They don’t really believe in capitalism. They want Exxon and other oil companies to drill, transport, and refine the oil as a public service.”

Yes.

Non-productive, talentless losers (like Democrats), do not understand ambition, drive, the basic importance of property rights and the entrepreneurial spirit. Nor do they have even a rudimentary understanding of the fundamental human response exemplified by the simple carrot and stick analogy.

Atlas Shrugged, my friend.

[Moonman62]

So we’re supposed to believe that Exxon is paying nearly 75% tax rate?

[ruiner]

Of course not, they get taxed on revenue not profit.

[upchuck]

I get a kick out of articles like this that pick on oil companies for having spectacular profits.

Why shouldn’t they? They deal in a commodity that is selling for a spectacular price.

If my math is right(?), 138B in sales and net income of 12B works out to about 8.5% profit. If I recall correctly, the average profit percent of the S&P 500 companies is around 12%.

News organizations that scream about the “excessive profits” of the oil companies do themselves and their consumers a tremendous disservice by not comparing apples to apples.

I wish I could find a chart somewhere that compares the revenue, net profit and profit percentage of the S&P 500 companies and the oil companies.

I’d also like to see a definitive statement going back, say, 30 years that compares the cost of oil vs oil company revenue vs oil company net income vs oil company profit percentage. I bet that’s eye opening.

[sport]

Bump

[Revolting cat!]

The RATS are betting on the stupidity of the voters.It’s a good bet.

[TheBattman]

So we’re supposed to believe that Exxon is paying nearly 75% tax rate?

Not even close. I have seen no-one post EXXON's gross total receipts from all avenues. You then would have a better idea what their tax rate is.

I am also curious if this $32.36 Billion payment includes employment taxes (SS, Medicare) as well as all the other assorted taxes.

[kcvl]

They paid almost three times what they made in taxes. That’s outrageous!

[A message]

32.36 billion! Good god! Where are the congressional hearings? Why isn’t Exxon’s CEO being grilled for allowing the government to profit from such exorbitant taxation.

Tax the government’s windfall profits from Exxon Mobil.

Exxon Mobil, lining the pockets of the fat cat profiteers in Congress.

[TheBattman]

OK, so I am an idiot sometimes (and very tired from a long day)> I completley ignored this (apparently):

According to CNN, Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter.

Which works out to about 23% of revenue to taxes. From that point of view, it doesn't look quite so bad. And when you consider that part of the difference goes towards marketing, exploration, reinvestment, operation and maintenance, salaries, royalties, etc., it really does not seem so out of proportion.

[sailor4321]

That rate of taxation is obscene!

[Moonman62]

So if you sell widgets on Ebay for $30 and they cost you $20 and you pay Ebay and Paypal $5 in fees, you mean you pay taxes on the full $30?

[Moonman62]

I am also curious if this $32.36 Billion payment includes employment taxes (SS, Medicare) as well as all the other assorted taxes.

Probably. It's some sort of Enron accounting designed to make W's oil buddies look good.

[strongbow]

OUTSTANDING! My father worked for 40 years at Exxon (Standard Oil) and accumulated lots of stock even as a blue collar worker. I love it when I hear about how much money he will be making from a great company like Exxon.