What Company Pays More Taxes than 50% of the People Combined?

The 27 October 2008 issue of Forbes has a quote of an Investor's Business Daily article which answers this astounding question. We hear Obama and his supporters constantly claiming that McCain is offering a tax break to the oil companies and we are supposed to assume that this is an evil act on McCain's part. Well, actually, he is not planning any special tax break for oil companies as seems to be implied by the Democrat claim. What he is planning to try to do is to reduce our corporate tax rate which is essentially tied with Japan's corporate tax rate as the highest in the world. He knows that our super high tax rate is causing American companies to expand more of their operations abroad at the expense of expanding operations in the U.S. Of course, it is also allowing companies based in Ireland and the many other low corporate tax countries to take business away from American companies.

Many Democrats have called for a windfall profits tax on American oil companies. According to the Investor's Business Daily article, economist Mark Perry has observed that ExxonMobil will pay more taxes to the Federal government this year than the combined total of taxes paid by 50% of all taxpayers. ExxonMobil paid $61.7 billion in taxes in the first half of the year, while having an aftertax income of $22.6 billion. The government makes much more from ExxonMobil's operations than ExxonMobil does!

Jimmy Carter went the windfall profits tax route on oil companies. There was a resulting 6% drop in domestic oil output and an increase in oil imports of 15%. If ExxonMobil were not being taxed so heavily, it would undoubtedly spend more on oil exploration, drilling, and oil field development. The result is already that less oil is coming to market and this means that oil prices are higher.

But Obama wants to milk even more money out of all of America's producers and it is especially easy to convince the simple-minded that oil companies are prime targets to be milked for all they are worth. Expect less oil and other goods and expect America's standing in a global economy to worsen when Obama puts his policies into effect. Expect American energy dependence to greatly increase despite all of Obama's foolish claims that his subsidies for alternative, sustainable energy sources will bring us to energy independence. Actually, I do not believe that he believes what he is saying. He is simply using the power of government subsidies, regulations, and mandates to gain control of the energy industries in order to advance his socialist agenda. This is as much a route to power as is giving tax rebates to people who do not pay taxes! It is all about power gained by promising some ill-gotten gains at the expense of some others chosen to be sacrificed.