Everyone hates oil companies, even the good guys. The hatred arises out of perceived gouging at the pump and the persistent urban myth that oil companies rarely pay taxes.
Truth is that the hatred is largely misplaced and that the government (what a fargin' surprise) rakes in three times as much cash from the oil companies as they earn in profits.
TWC is pushed for time this morning so I'll make this brief. According to the Tax Foundation......
America's last experiment with windfall profits taxes occurred more than a quarter-century ago, when President Jimmy Carter's Crude Oil Windfall Profits Tax Act went into effect on April 2, 1980. Our analysis shows that while the tax was forecasted to raise more than $320 billion between 1980 and 1989, it raised just $80 billion in tax revenue.
Additionally, the analysis notes that during the past 25 years oil companies directly paid or remitted more than $2.2 trillion in taxes, after adjusting for inflation, to federal and state governments; including excise taxes, royalty payments and state and federal corporate income taxes. That amounts to more than three times what they earned in profits during the same period.
Planned on inserting a snazzy chart right here but instead you can just click through to the entire Tax Foundation analysis and see a couple of snazzy charts.
Happy Hump Day.
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