Thursday, February 21, 2008

Exxon's Profits & Taxes

From Neal Boortz:

The reason politicians can successfully demagogue these profits is that the vast majority .. and we're talking 95% and above .. of Americans couldn't tell you the difference between a profit and a profit margin if their flat screen TVs depended on it. Simply stated, profit is the total amount you make. Profit margin is how much you make on each dollar of sales. You would think that this would be taught in our government schools ... but if you did think that you would be wrong.

So ... what has been happening to Exxon's profit margin during these record profit years? Staying about the same, that's what; around 10%.


There's more. The Adjusted gross income for the bottom 50% of taxpayers comes out to about $922 billion. This means that these taxpayers are paying an effective tax rate of about 3% of their adjusted gross income. Exxon? Adjusted gross income of around $67.4 billion in 2006 ... for an effective tax rate of 41%.

Read it all here.

No comments: