Why gas prices are rising

[mvpel]

Any tax, be it an income tax, business enterprise tax, sales-based tax, or a duty adds to the retail price of a business' products. If you don't cover expenses, you don't make a profit, and no profit means bankruptcy after a period of time.

At the very top of Item 6 of XOM's 2007 10K, they indicate $31.728 billion in sales-based taxes. Don't forget, they operate a nationwide chain of Exxon/Mobil retail gas stations across the country. There's a Mobil right at the center of my own town, and another one about two miles down the same road.

Item 18 of the 10K lays out the tax situation for XOM. It breaks down current and deferred, US and non-US, US taxes on non-US operations, sales taxes, and all other taxes and duties, including taxes reported in production and manufacturing and selling, general and administrative (SG&A) expenses.

Their 2007 worldwide total tax bill? $105.683 billion. That's about the amount of the entire Gross Domestic Products of the bottom 67 nations in the CIA World Factbook list for 2007. Just in taxes. For parasites who do nothing productive save a few regulatory and safety oversight functions, which in most cases they don't do very well to begin with.

They paid $630 million in state taxes, $263 million in US federal taxes on their non-US operations, and $5.1 billion in US income taxes total (enough to fund five BATFEs), and $29.864 billion in income taxes worldwide.

You think that this money doesn't come out of the pockets of its customers in the end? If it didn't, XOM would go out of business. It's that simple.

Imagine if farmers paid taxes amounting to 25% of their total revenue. We'd all be spending our free time grubbing for potatoes in our back yards to fend off starvation, rather than sitting in our comfortable chairs before our 19" flat-screens and arguing on the Internet.

 

[Glenn E. Meyer]

Cheney needs more batteries. See the man go fishing on the yacht of the Sultan of some place that produces oil. See his company move HQ to the Gulf.

That's it.

 

[HKuser]

Of course, Exxon's health has little to do with whether there is a speculative bubble in the oil commodies market. However, maybe we should stop taxing them and just make them pay market prices on their U.S. oil leases, make them protect their own shipping and supply lines, and deal with their own international messes. I wonder how they'd like that? We'd have a nuclear power based electrical powered economy in 5 years.

 

[sasquatch]

Of course, Exxon's health has little to do with whether there is a speculative bubble in the oil commodies market. However, maybe we should stop taxing them and just make them pay market prices on their U.S. oil leases, make them protect their own shipping and supply lines, and deal with their own international messes. I wonder how they'd like that? We'd have a nuclear power based electrical powered economy in 5 years.

And you'd probably be riding your bicycle or skateboard to work.

I would hazard a guess that those who rail against the oil companies probably still manage to drive their automobile 12,000-15,000 (or more) miles per year.

 

[wingman]

I've seen many ups and downs in our economy over the past 60 years however in my opinion never have I seen such a time in which there is such a desire to gouge the consumer, I'm not talking about mom and pop business people but large corporations, many of whom would sell American out to China or other such country for an extra 10% on the bottom line, sad fact is without some type of regulations you cannot control this mind set.

America has many problems, overspending by our government, nation building, outsourcing,trade deficits, uncontrolled immigration policies, we now take in more people then all countries combined. We have over 700 military bases around the world and building more. America can no longer afford to be the worlds police force.

Working a few extra hours per week is not going to cure these problems, however control where and how you spend would do much more.

 

[obxned]

If the oil companies are making so much profit, them go and buy some oil company stock. Those profits come back to you.

Actually, you probably already are getting some of those profits, through your insurance company and retirement fund.

 

[sasquatch]

If the oil companies are making so much profit, them go and buy some oil company stock. Those profits come back to you.

Yep. That has been the place to be over the last 6-7 years, since the .com debacle. Many oil and gas companies have seen 300-600% rise, and more, in their stock price over that time period. 600% in 5 years, not bad.....

Actually, you probably already are getting some of those profits, through your insurance company and retirement fund.

Yep again. Many mutual funds and retirement funds have sizeable holdings in those nasty old oil companies.

 

[ericp]

obx Without a perversion of logic, it is us, the consumers, that allow this to take place. The day we say we've had enough, is the day this bs stops.

Now, if I could just find my hummer keys.

 

[The Tourist]

Working a few extra hours per week is not going to cure these problems

Actually, it will. In just about the only way we can turn things positive. You have to understand the difference between "money" and "wealth."

If you work 40 hours per week and I give you a raise, you have more money. You might buy more groceries or a new pair of shoes, but that's an iffy proposition if they're out of you favorite brand of peanut butter or there's no shoes in your size.

Now, imagine one of us as a bullet caster. We scrounge dirty metal, add sweat equity and produce a bucket full of something that has never existed before. That's "wealth." You can sell the product, consume the product, barter it, etc., all free from the idea of "money."

That's why oil is a double-edged sword. If if I walked everywhere, there are petro-chemicals in things like medicines that I will consume no matter my wishes. If I buy vegetables, I am also paying a trucking company that consumes oil. If I buy an electric car I might be consuming oil from a fuel driven dynamo.

I believe in new revenue streams. For example, there was a story today in my local paper from the AP about a lumber company that sells sawdust. Sawdust is used in everything from pressed board to fuel pellets. In fact, since we have been building fewer homes there has been a decreasing need for lumber. Less lumber means less sawdust, so the the price of sawdust has doubled.

In other words, find a new product that didn't exist before, and market it during the low periods of your company. In the old days, if a lumber mill closed, people lost their jobs.

Even if Hillary is elected, we're going to Iran. That's where the "wealth" resides...

 

[tbinder]

Big Bad Oil - Myths

http://www.qando.net/details.aspx?Entry=8191

How about the big, bad & evil Beverage and Tobacco Industry?

Who "owns" Big Oil?" We do!

23% Individual Investors, 27% Pension Funds, 14% IRAs, 29.5% Mutual Funds and 5% Other Institutional Investors

Oh yes - 1.5% Corporate Insiders

 

[The Tourist]

Good point. Just a few years ago car sales were pretty much 50% passenger vehicles and 50% light trucks.

The same guy who criticizes the President is likely to be the same guy who yells, "That thing got a Hemi?"

 

[HKuser]

If they're doing well, what's the problem? Let them pay their way in the world. Why does the U.S. taxpayer have to allow them to pump our oil at a tenth of the price they'd pay elsewhere? Why does the U.S. taxpayer have to pay to protect oil going to China? That's free market reality for you. Everybody wants to get a check from Uncle Sugar but if you ask anybody to pay for what they demand, it's socialism.

 

[mvpel]

XOM paid $105 billion in all types of taxes worldwide in 2007, amounting to about 25% of their gross annual revenue. Talk about gouging.

 

[Redneckrepairs]

Quite simply if you discount all the taxes on a gallon its supply and demand . We pay the price to keep driving so it is worth the cost per gallon . Now i farm so what my cars/ pickups piss away a month is small change to me , however yall can expect to see higher food prices because of what it costs for me to produce grain or cattle . BTW i am not getting that grain price you see on tv , nor am i getting what it costs you for a pound of hamburger . I will however work for a profit or not at all .

 

[toybox99615]

consumers pay not corporations

no matter how you wish to claim corporations pay taxes the simple fact is they don't. They are nothing more than a collection agent for the government. Consumers paid the tax through the price they paid for the goods.

Where there no income to the corporation there would be no taxes transferred to the government. The other alternative would simple be to have the government eliminate corporate taxes and charge the tax directly to the consumer. But then you could not hide the taxes as easily from the consumer as they (consumers) would have a direct knowledge of how much tax they are paying per transaction.

 

[homefires]

Toybox: Most of the taxes on gas are federal and state!

Arizona gas is .60 less then here in New Mexico!

They pay there share.. It's the gov that See's the cash cow!

As far as it going up every day, we are buying product from a second party. America can't do squat any more.

 

[Redneck with a 40]

I blame the whackjob environmentalist's nutjobs for our problems today. I believe these people seriously want to put us back into the stone age.

1) No new refineries in 30 years, our capacity is maxxed out, if a refinery goes down, the price of gas jumps 30 or 40 cents. You can thank all the rediculous environmental regulations for this, we gotta protect that little spotted fly.:barf:

2) No nuclear power plants have been built in 30 years, this is pretty much zero emission energy, once again, you can blame the environmentalist and regulations for this.

3) We are not allowed to drill off the coast of California, or Florida, where we know there is a significant amount of oil, ditto the environmental regs. How about ANWAAR in Alaska, can't do that because a Caribou might die. These people are assanine to the core. Hell, China is drilling for oil off the coast of Florida:barf:, but we aren't.

4) Right now, here in Colorado, I'm paying $3.20/gallon for mid-grade gas.:barf: Our energy capacity is maxxed out and we're not allowed to explore for more, go figure that one out. Who is asking Congress for authority to explore for more oil? The oil companies! Congress and people bitch out the current energy prices, then Congress ties their hands when it comes to exploration. I'm really tired of this crap.

 

[The Tourist]

I'm really tired of this crap.

I'm at an age/place in life where you have to think beyond your own desires.

If my Harley still went 100 MPH running on watermelon rinds I'd make the change-over this afternoon. Not only has the very idea of oil caused wars, polution and pressures on ancillary parts of the economy, in the basic form it's just black water that makes energy.

If oil suddenly quit working tomorrow, do you think everyone would go back to living in caves? Of course not. We could magically find a new process for transportation and commerce double quick.

And here's my belief. This magical new clear water that came out of nowhere would be made, marketed, dispensed and sold by the same guys who sell gasoline now. And the price would probably be the same.

I make a living by selling you a product or service for more money than it cost me to acquire. That's the age old game. Oil is no different.

 

[toybox99615]

gas taxes

Homefires gas taxes are the ones you pay at the pump. These Federal and state gas taxes are added into the price at the pump. The corporate income tax everyone cries about are the taxes corporations pay directly from thier net income. Corporate income taxes have nothing to do with the federal and state taxes at the pump. Companies that are not involved with selling petroleum products pay income taxes just like the Exxon's of the country.

The bottom line is whatever corporations pay it came from sales. Sales income comes from customers. The cries of eliminating corporate taxes are a missguided notion that corporation would lower prices if there were no corporate taxes.

In any event the amount of tax collected as corporate income taxes are a part of the overall income to the Federal government. If you had no corporate income tax the revenue to the government would then come from some other source: most likely additional excise taxes on all manufactured goods.

Lets not hijack this thread into a tax thread.

 

[LightningJoe]

If you're paying what they're charging, that means the price is not greater than the value of the commodity.


It's really that simple. Why would I charge you $1.00 for something for which you will pay $5.00? Is any business run that way? Not a successful business. Why would I charge $0.80 a gallon when consumers will pay four or five times that? That'd be terrible business. The price will stop going up when you start buying less. That's true of every business with which I'm familiar.