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To: Wharf Rat who wrote (858840)	5/20/2015 9:32:15 PM
From: TimF	Respond to of 1575173

If they paid nothing it would not be a subsidy, defense is a public good, not something specifically provided for the oil industry. Its no more a subsidy then the existence of police is a subsidy. Beyond that the oil industry does pay a ton of taxes, and pays at a higher rate then most other industries. The 11.7 percent rate claim is faulty in two ways. 1 - The overseas profits are subject to foreign taxes, the percent should be calculated based on their US income. Much of the time the oil industry is among the higher taxed industries on US realized profits. 2 - Refined oil products are subject to significant taxes. In fact the taxes paid on gasoline and diesel amount to more than the oil industries after tax profits in many years.

To: Wharf Rat who wrote (858840)	5/20/2015 9:37:14 PM
From: TimF	3 Recommendations Recommended By Brumar89 i-node TideGlider Read Replies (1) \| Respond to of 1575173

Who Really Gets Rich Off High Gas Prices?Exxon made seven cents per gallon in 2011. Federal, state and local governments siphoned off 50 cents in taxes. By DREW JOHNSON Aug. 2, 2012 7:09 p.m. ET With the average price of gas in America hovering around $3.50 per gallon for regular unleaded, it costs more than $50 to fill a typical car's 15-gallon tank this summer. Why does gas cost so much? You may blame high gas prices on rich oil company executives or greedy gas station owners. The truth is that governments rake in a larger profit at the pump than anyone—and with gas taxes on the rise in many parts of the country, there's no relief in sight. The price of a gallon of gas is based on the combination of four costs: that of crude oil, of refining gas, of distribution and marketing, and of taxes. Crude oil costs make up about 76% of the cost of gasoline, according to U.S. Energy Information Administration (EIA). Thus $2.66 of a $3.50 gallon of gasoline is set before the oil is even refined. Global markets, reacting to supply and demand, determine the cost of crude oil. Just like any commodity, from gold to corn, a shortage in supply or an increase in demand leads to a rise in prices. Refining oil is the next step in the process—and the next expense for drivers. Gasoline is extracted from crude oil and additives, including lubricants and detergents to reduce engine deposits, are added. As of January 2012, the EIA found that refining was responsible for 6% of the cost of gasoline. Distribution and marketing—the part of the process most apparent to consumers—constitutes another 6% of gas prices. That portion of the cost includes the shipping and transportation of the gasoline, a markup to cover retailers' expenses, and any advertising created to appeal to customers. The remaining 12%—or almost 50 cents per gallon today—goes directly to federal, state and local governments in an array of sales and excise taxes. The federal gas tax is 18.4 cents on every gallon of gasoline sold in America. State gas-tax rates vary from a low of eight cents per gallon in Alaska to a jarring 49 cents per gallon in New York. Other states where it's steep to fill up include California and Connecticut—each with 48.6-cent-per-gallon gas taxes—and Hawaii, at 47.1 cents per gallon. Some local governments have gotten in on the act, too. In California, local sales and excise taxes on gasoline average 3.1%, according to the Los Angeles Times. That works out to about 12 cents in local taxes for each gallon of gas, based on the state's current average of $3.80 per gallon. Skokie, Ill., a suburb north of Chicago, levies a gas tax of three cents per gallon. You'll pay an extra nickel per gallon at gas stations in Eugene, Ore. And the next time you're gambling in Las Vegas, you'll need plenty of cash left over to cover Clark County's 10 cent local tax on a gallon of gas. In Florida, Brevard County (home to the Kennedy Space Center) expects to siphon more than $15 million from motorists this year, according to the newspaper Florida Today. Put this all together, and government makes far more from gas sales than all of the oil companies put together. Exxon, for example, made only seven cents per gallon of gasoline in 2011. That's a drop in the bucket compared to the nearly 50 cents per gallon that federal, state and local governments rake in on an average gallon of gas pumped in the U.S. Most people have to drive—whether to work, to the grocery store, to pick up kids from school or for dozens of other reasons. For some families struggling to make ends meet, paying 50 cents per gallon in taxes may be the difference between driving to work and putting dinner on the table. So the next time you begin to blame oil companies, speculators or service stations for high gas prices, remember that no one get richer off of gasoline than government. wsj.com

To: Wharf Rat who wrote (858840)	5/20/2015 9:38:30 PM
From: TimF	Respond to of 1575173

Three U.S. oil companies paid a total of $289.7 billion in corporate income taxes between 2007 and 2012, the biggest portion of corporate taxes in absolute terms, according to analysis by Standard & Poor’s Capital IQ. The data show, as reported in the New York Times on May 25, 2013, that when it came to corporate income taxes -- federal, state, local, and foreign – between 2007 to 2012 the three major oil companies paid the following: ExxonMobil, $146 billion; Chevron, $85.5 billion; and ConocoPhillips, $58.2 billion. That totals $289.7 billion. In addition, a 2013 report (p. 7) by the oil and natural gas trade group American Petroleum Institute (API), using S&P Research Insight and S&P 1500 by GICS Industry Code data, shows that the oil and gas industry had the highest effective tax rate during that time period (averaged over 2007-2012) of any U.S. business: 44.6%. That compares, according to S&P Capital IQ, to Apple -- the largest market capital company at $400 billion – which had an effective tax rate of 14% over the same timeframe. Oil and gas firms are paying more than three times the tax rate of Apple. The API report also shows the effective tax rate of other industries: Industrial conglomerates (15.8%); insurance (17.8%); pharmaceuticals (21.3%) and computer and peripherals (25.6%), among others. (Page 7) API data show that between income taxes, rents, royalties and other fees, the oil and natural gas industry pays millions of dollars to the U.S. Treasury every day. “The federal government collects an average of $85 million per day from America’s oil and natural gas industry,” Brian Straessle, spokesperson for API, told CNSNews.com. “We pay our fair share and then some while providing energy to families and businesses and supporting millions of jobs throughout the economy.” The oil and gas industry supports 9.8 million U.S. jobs and represents 8% of the Gross Domestic Product, according to API. In 2011, the industry pumped $545 billion into the U.S. economy through capital investment, wages and dividends, according to API. http://cnsnews.com/news/article/penny-starr/3-us-oil-companies-paid-highest-corporate-income-taxes-2897b-2007-12