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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (433799)	11/8/2008 9:09:34 AM
From: Alighieri	Read Replies (2) \| Respond to of 1573901

ExxonMobil already pays 41% of its gross income in taxes. Yeah man, that's like "favorable tax treatment," ya know ... I pay more than 41% in taxes on my "profits"...these guys are enjoying a 3% reduction in taxes that was meant for US manufacturing and mccain would have further lowered their taxes while they post obscene profits...what the hell are you thinking? Listening to talk radio 24/7 is bad for you. You know better than that, LOL ... It's pretty boring driving for 12 hours at the time and it was interesting to hear how these folks would react to losing the election. Al

To: Tenchusatsu who wrote (433799)	11/8/2008 11:47:14 AM
From: Road Walker	1 Recommendation Read Replies (2) \| Respond to of 1573901

re: ExxonMobil already pays 41% of its gross income in taxes. Yeah man, that's like "favorable tax treatment," ya know ... It's more complicated than it seems. Besides the following, I'm not sure that 'pass through' taxes, the approximate 50 cents per gallon excise tax which is passed directly on to the consumer isn't included in their total tax bill (I suspect it is). Paying Dearly to Drill So should the conversation shift from Exxon, profit pirate, to Exxon, tax victim? It depends which side of the number you're on. "Our industry is one of the most heavily taxed in the world," says Gantt Walton, an Exxon spokesman. "While our worldwide profits have grown, our worldwide income taxes have grown even more." Walton says. From 2003 to 2007, Exxon's earnings grew by 89%, while income taxes grew by 170%. Much of that growth was overseas. Oil-producing countries charge companies like Exxon dearly to dig for oil. Arrangements vary from country to country, but Russia and Libya charge companies up to 90% of the revenues they collect for extracting oil, according to Fadel Gheit, senior analyst for Oppenheimer (OPY). These arrangements—whether production share agreements or royalty contracts—are not disclosed by companies and governments. In tax terms, the U.S. government is kinder to oil companies. According to Securities & Exchange Commission filings, Exxon paid an effective tax rate of 34% to the U.S. government in 2007, or $5.12 billion. While cheaper than rates from some foreign governments, it's still a higher rate than many U.S. companies pay. A BusinessWeek collaboration with Capital IQ in December, 2007, found that the average percentage of earnings spent on taxes by companies that make up the Standard & Poor's 500-stock index was 26%, well under the 35% official U.S. corporate income-tax rate. Companies achieved lower taxes in a variety of ways, from taking advantage of lower tax rates abroad to benefiting from industry-specific breaks. Industry-Specific Tax Breaks However, Exxon's critics point out that its stated tax rate doesn't reflect a number of deductions and tax breaks that are afforded the oil and gas industry in the U.S. Erich Pica, a spokesman for the environmental group Friends of the Earth, says the U.S. federal tax code contains more than $17 billion in breaks to benefit the oil and gas industry for fiscal years 2007-11. That $17 billion is made up mainly of tax breaks newly offered or extended in the Energy Policy Act of 2005, including a "percentage depletion allowance" that allows oil companies to deduct 15% of their sales revenue, to reflect the declining value of their investment, and 70% of their drilling costs. Additionally, oil and gas companies pay reduced royalty fees on products they recover from federally owned waters, which Pica says could cost taxpayers $65 billion over five years. businessweek.com