"WINDFALL PROFIT" Explained (Very informative!)

[supercar1of1]

“The ‘windfall profits’ tax is back, with Barack Obama stumping again to apply it to a handful of big oil companies.

Which raises a few questions: What is a ‘windfall’ profit anyway? How does it differ from your everyday, run of the mill profit? Is it some absolute number, a matter of return on equity or sales—or does it merely depend on who earns it?

Enquiring entrepreneurs want to know.

Unfortunately, Mr. Obama’s ‘emergency’ plan, announced on Friday, doesn’t offer any clarity.
To pay for ‘stimulus’ checks of $1,000 for families and $500 for individuals, the Senator says government would take ‘a reasonable share’ of oil company profits.

Mr. Obama didn’t bother to define ‘reasonable’... This extraordinary redefinition of free-market success could use some parsing.
Take Exxon Mobil, which on Thursday reported the highest quarterly profit ever and is the main target of any ‘windfall’ tax surcharge. Yet if its profits are at record highs, its tax bills are already at record highs too.

Between 2003 and 2007, Exxon paid $64,700,000,000.00 windfall in U.S. taxes, exceeding its after-tax U.S. earnings by more than $19 billion.

That sounds like a governmen us, but perhaps we’re missing some... business subtlety.

Maybe [Obama has] in mind profit margins as a percentage of sales.

Yet by that standard Exxon’s profits don’t seem so large. Exxon’s profit margin stood at 10% for 2007, which is hardly out of line with the oil and gas industry average of 8.3%, or the 8.9% for U.S. manufacturing (excluding the sputtering auto makers).
If that’s what constitutes windfall profits, most of corporate America would qualify... The fun part about this game is anyone can play.

Jim Johnson, formerly of Fannie Mae and formerly a political fixer for Mr. Obama, reaped a windfall before Fannie’s multibillion-dollar accounting scandal.

Bill Clinton took down as much as $15 million working as a rainmaker for billionaire financier Ron Burkle’s Yucaipa Companies.

This may be the very definition of ‘windfall.’... The point is that what constitutes an abnormal profit is entirely arbitrary.

It is in the eye of the political beholder, who is usually looking to soak some unpopular business.

In other words, a windfall is nothing more than a profit earned by a business that some politician dislikes.

And a tax on that profit is merely a form of politically motivated expropriation.

"It's what politicians do in Venezuela, not in a free country." —The Wall Street Journal









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[TheSickness]

I anxiously await your next diatribe on the ignorant wretch that has single handedly set out to destroy our country....Why not post up a nice tiddy list of all of your boys failures in his 8 yrs of do nothing arrogant politics ? Exxon-Mobile has recorded the highest profits by any company in the history of our nation.....This is a fact no matter how cute you want to slice it....Why not debate our failed energy policy that in the last 8 years has done nothing but line the pockets of large oil companies ?

 

[OCBob]

I mentioned yesterday that I thought this was nothing but a political ploy to garner votes. I mean, who doesn't hate high energy prices, and who doesn't want a check for a grand?

All along I've been saying the same thing. Take away their tax breaks or subsidies or whatever you want to call them. On top of this our existing laws on collusion and price fixing need to be heavily and fairly enforced.

Beyond that, it is merely capitalism at work. I would continue to encourage Americans to reduce their demand, however possible. Keeps more money in their pockets instead of oil CEOs.

There is one other thing that I would look into if I were in a position of power. I would do what I could to encourage new companies and new people to get into the alternative energy game. Because I feel pretty confident that if the large oil companies end up running that game too, we won't see the full effects in our wallets. Competition is what will drive lower energy costs, and nothing else.

 

[supercar1of1]

You men sure do type fast.

Back later! JTH







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[Django]

I anxiously await your next diatribe on the ignorant wretch that has single handedly set out to destroy our country....Why not post up a nice tiddy list of all of your boys failures in his 8 yrs of do nothing arrogant politics ? Exxon-Mobile has recorded the highest profits by any company in the history of our nation.....This is a fact no matter how cute you want to slice it....Why not debate our failed energy policy that in the last 8 years has done nothing but line the pockets of large oil companies ?

Many Americans are concerned over the high price of gas and there are surely differences of opinion, even among conservative minds as to what to do about this problem.... But there is quite a bit more to discuss than the same regurgitation of the failed policies of George Bush and his administration. News flash: George Bush is history, past tense, sayofukkynara and gtf out'a here.... Obama is NOT running against Bush... Enough about fkn Bush ....OK...? :deadhorse: :deadhorse:

Isn't it time that you Obama supporters forget about bashing Bush and began discussing something truly substantive relative to Obama's strengths (Surprise!!! Obama wants to tax big oil... an all too predictable Democrat strategy....tax... tax...tax....) You think that big oil won't just pass that tax burden onto the consumer......? Cop a clue, please)

But, attacking John (supercar) for posting another anti-Omama thread and bashing someone who isn't even a fkn candidate in this election is suggestive that you Obama has damn few positives... PERIOD.

Obama is just another "tax and spender" .....

But instead of outlining something substanive regarding his policies, all his supporters can repeat over and over is shit about BUSH BUSH BUSH BUSH BUSH BUSH BUSH BUSH BUSH.............. ENOUGH ALREADY....... :deadhorse:

What's so striking is that there are virtually NO threads bashing McCain........... Apparently, no one can find anything wrong with him or they'd be saying so.... They're too busy dissing a non-existing candidate....

D

 

[SilvrSRT10]

Does anyone listen to Neal Boortz? He was painting a picture of what the tax situation could look like under Obama's leadership and it wasn't pretty. He was saying something along the lines that we would be able to keep a whole 37 cents out of every dollar we earn. If that's the case then I'll be shutting my business down. I work too hard to be giving almost 2/3rds of my earnings away.

 

[HOT RAM]

Exxon-Mobile has recorded the highest profits by any company in the history of our nation.....This is a fact no matter how cute you want to slice it....

Is it wrong to make a profit ? Should we penalize everyone that makes more than we think they should ? The whole idea of business is to make a profit.The more profit you make ,the more tax you pay.Why do the democrats ALWAYS want to demonize the successful,the rich,the businesses ? They always play to the lower classes ( financially speaking) by making anyone more happy or successful than themselves appear to be bad for it.

Why should anyone,even big oil companies have to pay a higher percentage just because they make more ? EVERYONE should pay on a percentage basis and it should be the same for all.

Anyone who votes for tax and spend democrats deserves just what they get.The only way to "succeed" with them in power is to quit work and go on welfare.

Love ya Mikey,but ya concern me at times

 

[supercar1of1]

Exxon-Mobile has recorded the highest profits by any company in the history of our nation

They also paid the most taxes of any company in the history of our nation.



$64,700,000,000.00+


So, your point?:dontknow:



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[TheSickness]

Many Americans are concerned over the high price of gas and there are surely differences of opinion, even among conservative minds as to what to do about this problem.... But there is quite a bit more to discuss than the same regurgitation of the failed policies of George Bush and his administration. News flash: George Bush is history, past tense, sayofukkynara and gtf out'a here.... Obama is NOT running against Bush... Enough about fkn Bush ....OK...? :deadhorse: :deadhorse:

Isn't it time that you Obama supporters forget about bashing Bush and began discussing something truly substantive relative to Obama's strengths (Surprise!!! Obama wants to tax big oil... an all too predictable Democrat strategy....tax... tax...tax....) You think that big oil won't just pass that tax burden onto the consumer......? Cop a clue, please)

But, attacking John (supercar) for posting another anti-Omama thread and bashing someone who isn't even a fkn candidate in this election is suggestive that you Obama has damn few positives... PERIOD.

Obama is just another "tax and spender" .....

But instead of outlining something substanive regarding his policies, all his supporters can repeat over and over is shit about BUSH BUSH BUSH BUSH BUSH BUSH BUSH BUSH BUSH.............. ENOUGH ALREADY....... :deadhorse:

What's so striking is that there are virtually NO threads bashing McCain........... Apparently, no one can find anything wrong with him or they'd be saying so.... They're too busy dissing a non-existing candidate....

D

Had you taken the time to actually read what I have posted I view McCain and Bush in the same light....McCain is no longer the Maverick that he used to be...The platform he has outlined is a carbon copy of the failed politics of the last 8 yrs. There are no threads bashing McCain because I chose to take the higher ground...By me that is I can't obviously speak for anyone else. So to me there is no difference in Mcfucknut or the Daffy Duck in office now. really if you can't gather what is being posted by a few of us on the obligatory daily Obama bashing threads...Then one of us starting a bashing McCain thread will shed no further light on just what a completely out of touch douche bag he is. So yes in a nut shell it is relevant whether you happen to think so or not.....................:thefinger:

 

[TheSickness]

They also paid the most taxes of any company in the history of our nation.



$64,700,000,000.00+


So, your point?:dontknow:



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Profits are after all deductions numb nuts Otherwise they would not be PROFITS :dontknow: Everyone has to pay their share. You make more you pay more....Simple really...Well that is until a Swiss banker divulges all the secret tax shelters and accounts they hide from the Government :marchmellow: There is my point

 

[Fast one]

Had you taken the time to actually read what I have posted I view McCain and Bush in the same light....McCain is no longer the Maverick that he used to be...The platform he has outlined is a carbon copy of the failed politics of the last 8 yrs. There are no threads bashing McCain because I chose to take the higher ground...By me that is I can't obviously speak for anyone else. So to me there is no difference in Mcfucknut or the Daffy Duck in office now. really if you can't gather what is being posted by a few of us on the obligatory daily Obama bashing threads...Then one of us starting a bashing McCain thread will shed no further light on just what a completely out of touch douche bag he is. So yes in a nut shell it is relevant whether you happen to think so or not.....................:thefinger:

What do you mean by 8 yrs. of "failed" politics? Can you give me examples of successful politics? And what kind of politics would you personally want to see happen in the next four years?