Tax Oil Companies and Give Tax to Americans (dollar, rating, financial)

[beach43ofus]

Originally Posted by Mad_Jasper

I do believe that each Americans should be entitled to profit sharing with corporations that profit from our natural resources. However, oil companies are not the problem here. The Biden Administration wants to reduce future American Oil Production and it's policies are reflected in the market.

Much of the profits made off America's energy resources are made off of privately owned land...like my Brother-In-Laws farm in Louisiana that has natural gas wells.

I don't think other Americans are entitled to profits from his land/wells, but perhaps from profits made from publicly owned lands...maybe.

That would increase the price at the pump however. It would be like taking money out of your right pocket, & moving it to your left pocket...no net gain, just shifting it around.

[Goodnight]

Originally Posted by Mathguy

You mean tax them more?

We already showed Exxon paying 8 billion in federal income tax for 2021.

If you're talking about additional taxes on a specific industry then they'll just increase their prices until they reach previous profit levels.

For example, they make 31b and paid 8b tax net 23b.

Increase the tax to 50% instead of about 25% and they'll increase their gross profit margin to make 46b - 23b tax = 23b net profit.

That would be an increase in profit margin of 46/31 or about 50% which is right now around 40 cents to about 60cents post tax hike.

So, you would see the price at the pump jump up about 20cents as the oil companies pass the tax increase through to the consumer.

Any questions? There's a formula for it and everything. Corporate pricing 101.

That doesn't always follow, depends on the competition. Did we see a price cut at the pumps when they reduced the corporate rate from 35% to 17%.

[Artisan10]

Originally Posted by Crossfire600

https://www.whitehouse.senate.gov/ne...ef-at-the-pump

Someone has to stop the insanity! It’s not their fault it’s yours for Christ's sake.. the market is reacting to your policies. That what free markets do. This is going nowhere.

Businesses don't pay taxes.

Taxes and other costs of production are passed on to the customers, or corporations lower wages, or they reduce their workforce.

[Mathguy]

Originally Posted by Goodnight

That doesn't always follow, depends on the competition. Did we see a price cut at the pumps when they reduced the corporate rate from 35% to 17%.

Ok, lets ball-park the tax impact.

At the time of that change gas was about $2.50.

Take out federal and state (roughly 50 cents nationally) and you have $2 product cost.

Gross profit margin 10% x 2 = 20 cents.

Net profit at 35% = 13 cents.
At 17% gross profit would need to be closer to 15cents to get net of 13 cents.

So at the time the adjustment for the tax change was probably around 5 cents a gallon.

With seasonal demand and competition as you noted plus other general factors that 5cents is going to disappear in the stew so to speak.

[albert648]

This has to be the most retarded idea that any politician or bureaucrat has dreamed up.

The impact of this "tax" will cause prices to rise throughout the supply chain. Name ONE single product where oil/energy is not a factor of production.

[Goodnight]

Originally Posted by Mathguy

Ok, lets ball-park the tax impact.

At the time of that change gas was about $2.50.

Take out federal and state (roughly 50 cents nationally) and you have $2 product cost.

Gross profit margin 10% x 2 = 20 cents.

Net profit at 35% = 13 cents.
At 17% gross profit would need to be closer to 15cents to get net of 13 cents.

So at the time the adjustment for the tax change was probably around 5 cents a gallon.

With seasonal demand and competition as you noted plus other general factors that 5cents is going to disappear in the stew so to speak.

Assuming that is correct that doesn't sound like much of a gain or loss either way. Besides much of the tax cuts went back into stock buy backs not price decreases at the pump. Now they are making a windfall at the pump for the same production costs.

[Mathguy]

Originally Posted by Goodnight

Assuming that is correct that doesn't sound like much of a gain or loss either way. Besides much of the tax cuts went back into stock buy backs not price decreases at the pump. Now they are making a windfall at the pump for the same production costs.

1. Going to need you to support your 2nd sentence.

2. What the heck are you talking about "same production costs"?

Here is a nice chart showing how oil and gas prices move together.
https://en.m.wikipedia.org/wiki/File...ices_graph.png

The cost of the primary input "oil" has gone from $65 last year to $100 the same time this year. Are you suggesting that Saudi Arabia and other oil sellers are still selling at $65 which would have to be the case for the same production costs.

[Oklazona Bound]

Originally Posted by scarabchuck

Exactly. Go look up how much refiners profit per gallon of gas , vs what the state of CA profits per gallon of gas.

Its hard to get exact numbers but when prices are high they might make $1 per gallon. Still less than the state of CA gets. And prices go down so do their profits. But California still makes a couple buck a gallon.

[beach43ofus]

[quote=Mathguy;63084271]Inflation is just another way for the government to *help* you while making everything more expensive and blaming it on everyone else.

Hey! here's a 10% raise!

Well, now things cost 12% more but that's not our fault. We got you a 10% raise!

Works great on most Americans, I've lost all patience with uneducated morons republican or democrat.


So have I. In my 4 years posting here, I must have explained it 20+ times that corporations do not ultimately pay any taxes, but simply pass that expense on to their customers.

I've explained that I own a corporation, & do this myself every time I send my clients an invoice.

People who cannot, and/or will not, accept this as fact, have been told otherwise their entire lives by corrupt politicians, and their media accomplices.

If you tell a lie enough times, people start to believe it, & that is precisely what has happened with this topic.


HOWEVER! We'll have a unique opportunity coming along in the near future to undo the lies...

This October 2022, in Florida, the state is not going to charge gas stations the 27 cent per gallon gas tax:

https://www.wptv.com/traffic/gas-pri...-until-october

So, starting Oct. 1st the gas stations prices will drop by 27 cents/gal. But come Nov 1st, the 27 cent/gal. tax will start up again, so the price/gal. will increase by 27 cents/gal..

That will illustrate the concept of "embedded taxes" to everyone who buys gas in Florida this October

Hopefully, this will make national news, but I don't expect the mainstream media to cover it.

[Kracer]

Originally Posted by Crossfire600

https://www.whitehouse.senate.gov/ne...ef-at-the-pump

Someone has to stop the insanity! It’s not their fault it’s yours for Christ's sake.. the market is reacting to your policies. That what free markets do. This is going nowhere.

Oil companies provide the largest percent of taxes collected by the government, petro industry is the government's golden goose. Biden is all about slaying golden geese to make us a third world nation, begging for government intervention.