Exxon's obscene profits should be stated as the governments obscene profits:
Exxon Mobil Corp. Income Statement
For 2007 Exxon-Mobil reported the following figures*:
Total Revenue: $404 Billion
- After deductions for cost of goods and expenses:
- Income Before Tax: $70 Billion
- Income Tax Expense: $30 Billion
Net Income: $40 Billion
Firstly Exxon Mobil is the largest corporation in the world by revenue so profits will be astronomical by any margin. Exxon netted approx. 10% on their total revenue which is low by any standards, Microsoft for example netted approx 30%. To put a face on the amount that Exxon corporation and its shareholders are making as best I can gather it's about 10 cents on a gallon. If anyone can find anything else suggesting otherwise I'd love to see it because I can't find a definitive source. That number was gathered from a variety sources that ranged anywhere from 4 cents to 15 cents. Note that this is not in reference to the price made by the dealer at the pump but Exxon's profit.
You could argue that if Exxon is making 10% profit on every dollar then they are making 40 cents on every gallon but not so fast. You also have dealer profits, taxes directly paid by the consumer and other costs that are neither expense or profit for Exxon that be included in the $4 cost of gallon of gas. I do wish there was really good source for exactly how much Exxon the corporation is making on gallon but there isn't so I'll stick with 10 cents for the time being unless proved otherwise. If you want to go with 20 cents or even 40 cents feel free as its still not that much.
The tax directly paid by consumers at the pump on that gas far exceeds the 10 cents made by Exxon, for that matter its even more if Exxon was making a full 10% on $4. Here in Pennsylvania ithe tax on gas is roughly 50 cents on a gallon. It varies by state but most are going to be in that range. That's 5 times the amount of profit that Exxon is making on gallon of gas, what is even more obscene the percentage that the government was making when gas was cheap.
It doesn't stop there though the consumer is also indirectly paying the 29 Billion in income tax paid by Exxon. Now I'll have to ask who is gouging the U.S. consumer? Exxon or the government? The answer is quite clear, the government is.
The 29 billion in income tax is more tax than the bottom 50% of people in the U.S. paid combined. You heard that correct, Exxon is paying more in taxes than half the U.S. population however in reality it's the U.S. population paying it as these taxes are indirectly being paid by the U.S. consumer. Exxon is just the middleman collecting the money and sending it off to the buffoons in Washington.
Who are the people that reaping these profits? If you're invested in any mutual funds chances are you are invested in Exxon Mobil. Pension funds are some the largest holders of Exxon stock. Many of the people reaping the benefits of the profits of Exxon are in fact the common people.
"Windfall Tax" on top of the other taxes already piled on the American consumer? pffffffffttt... give me a break.
*numbers have been rounded