tigris72poo

Exxon Shareholders Suffer a Windfall Loss of 13.7%

Exxon and all the other oil companies pay royalties that are a fixed percent of the price of every barrell of oil they produce. So the government gets just as much as a windfall from eising prices as the company. Furthermore, these royalties come right off the top. Then after paying all their expenses ( for drilling rigs, steel, chemicals etc.which are rising faster than the price of oil in many cases) they pay income tax on what is left. So the governement gats it's take twice: off the top line and out of the bottom line.

Also, who is to say what is a windfall? The technology, tobacco, soft drink, drug and entertainment companies (to say nothing about lawyers) make higher profits as a percent of revenue or capital invested than the oil companies.

Finally, if you want more of something (energy independence anyone?) you tax it LESS not more.

Those who are in favor of the government deciding what is a windfall and how we should tax it, should move to North Korea or Cuba and see how well socialism works.