Oil profits compared to other industries

There has been alot of talk this year about “windfall profit” taxes. But what exactly does it mean? Well let’s take a look at what businesses are making profits.

Exxon Mobil last Thursday announced a record quarterly profit of like $12 billion. But, it’s tax bills are already at a record high also. Between 2003-2007, Exxon paid $64.7 billion in taxes, exceeding its after-tax U.S. earnings by more than $19 billion.

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. Take aerospace or machinery, both 8.2% in 2007. Chemicals had an average margin of 12.7%. Computers: 13.7%. Electronics and appliances: 14.5%. Pharmaceuticals (18.4%) and beverages and tobacco (19.1%) round out the Census Bureau’s industry rankings. The latter two double the returns of Big Oil, though of course government has already became a major shareholder in the tobacco industry through the various legal settlements that guarantee a revenue stream for years to come.

LG, the electronics company, saw its profits grow by 505% in 2007. Abbott Laboratories hit 110%. Liberal goon Warren Buffett’s outfit pulled in $11 billion last year, up 29% from 2006. Its profit margin was 11.47%, which beats out the major American oil companies. Google, which earned a mere $4.2 billion but at a whopping 25.3% margin. Google earns far more from each of its sales dollars than does Exxon.

GE’s profit margin in 2007 was 10.3%, about the same as Exxon’s. GE profits by investing in alternative energy sources which Obama says that Congress should subsidize even more heavily than it already does. 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 Ron Burkle’s Yucaipa Companies. Oh, I get it now! Profits are taxed by political motivation. Politicians decide to crush the companies that they dislike with a “windfall profit” tax and decide to help companies that they support and subsidize them with taxpayer money! And in return collect some of the “proceeds”. This is not what your government is supposed to be doing people. Politicians are working for their own interests, not yours or mine. They are just giving us the middle finger.

Read the full Wall Street Journal story: What Is a ‘Windfall’ Profit?

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