And the overseas work is going overseas ( actually there is a land route from China to India ). This is the rising tide raises all boats comment.



How do you figure ?

Think of it this way, there is a tax increase on 16 YO males in the country, nobody else, just your demographic. Sound about fair to you ?

This is the Senate trying to make it look like they are doing something, by raising taxes, and picking the pockets of the US consumers.
The Senate do not care that it is harder and harder to build refining capacity ( which is what is causing the refined fuel price to go up and supplies to drop while oil supplies are on the increase ), the are looking to pull more tax money from the our pocket.
- Keep in mind, a tax on one is a tax on all. Oil companies are not going to eat this tax increase out of the goodness of their own heart.

This while the US is one of the highest ( if not the highest ) in corporate tax structures.
Canada has a push on right now to structure their tax code to be favorable to corporations that are located there or relocate there. What do you think will happen when the tax increases get bad enough in the US ?

 

Saying Facebook is drama is like saying the parking lot at K-Mart is drama. It is nothing more than a place to talk, exchange ideas, vent, etc. PEOPLE cause drama not places. If you have friends who are into drama, then the places you go with those friends will have drama. Make no mistake it is because of your friends not the location. That is how my Facebook experience is not filled with drama. I don't allow it. The people I friend act like adults and like they are in public when on Facebook (even the teens and kids I am friends with). When they start acting like idiots, they get unfriended real quickly. Not everyone can see your Facebook. It all depends on how your settings are configured. Mine is locked down tight.

 

They are subsidies! they dont need it! They had record profits. I remember you saying it was because of the higher prices but how could that be?! the only way that is is if they are charging more to make more of a profit! not because production costs went up because if it was that, they would offset that by an increase in price also, but the profits wouldnt differ by a whole lot! its all about making a bigger profit. I agree with you about the refineries, absolutly we need more, but oil companies make us the hostages so they can keep the subsidies that make up 1% of their profits. (sorry if you cant understand what im saying, its hard to explain the way im seeing it right now)

 

And I guess the tax bracket you are in is a subsidy then.

This is just an out and out false, they did not have record profits.
- Lets try not to post conjecture and opinion as fact.

I said they made profits based upon a percentage of the cost of product.
If the cost of producing refined fuel is a fixed cost, and the cost of sales is fixed ( the franchises that sell the product to me & you ), and there is the cost of a barrel of oil ( variable ) and the price for refined fuel is variable and the supply is drying up due to not being able to make enough of it ( causing prices to go up ), what do you think happens ?
If XOM cannot make enough for their stations, they go on the open market and buy the finished product, at market price.

It is a commodity, just like Gold just like Silver. If the open market drives the price up, that is what it is sold for. Basic supply & demand.
XOM, BP, etc do not set the base price of fuel, that is the open market that sets the base price.

Production costs did not go up ( any meaningful amount ), the demand for the finished product went up, and the supply is not there.

Again, if you think this is a subsidy ( the tax rate they pay at ) then you are getting a subsidy on your income tax. Wait, I think you do, I am paying at a multiple of the rate you are paying. Why is it I get to pay a bigger percentage in income taxes than you do, just because I make more ?
I guess that is all about you keeping more of your money, while I get to pick up the tab.... Where have I read this at lately ?
Ask your parents to pay more income tax, so you can keep more of what you make, and see what happens. Bet they start charging you room & board, to make up the difference ( which is what is going to happen when oil companies get an income tax increase ).

Do some reading on supply and demand pricing.
What should the US oi companies do, sell refined fuel on the open market at 20% below going rate, just to make you happy ?
Want to see the supply in the US dry up, every other country would have a line of tankers at the ports to get all they could.

 

They are oil subsidies! thats what they are called! its taking away the taxpayer money that goes to them (4 billion) why shouldnt that be on the table?

 

You know what, I like Obama but the drilling ban is STUPID! I wish BP was more careful and maybe this wouldnt have happened. lift that ban

 

It is raising their taxes plain and simple.
Back to, how about a tax increase on 16 YO males in the US ? If the oil companies getting a tax increase is OK to you, then this should be OK to you.
- If not, there is a bit of NIMBY going on here.

It is not taking away anyone's money, it is money the Senate wants to spend on other things ( vs not wanting to make budget cuts ).
The Senate wants you to believe that they are going to take the additional tax money from the US oil companies, and use it to pay off the debit.

Fine, raise the taxes for this 1 group ( don't touch Walmart what every you do why go after the LARGEST company in the US ), what do you think this is going to do to the cost of fuel ? hint - don't listen to what the Senate is telling you, oil companies have share holders to keep happy.
XOM got hammered in 2009 for 50% of the previous years profits. Where was any outcry about them being down so far in 2009 ( nobody could care less ) ?
2010's numbers still were not to 2008's numbers.
Looks like they might be even with 2008's numbers in 2011, but that is to be seen.

What do you think will happen with the energy exploration budget at XOM ?

If the taxes go up on oil companies, expect real soon to see them relocating HQs to Canada to get cheaper taxes than they have now.

The Senate is firing the starting gun for the run to Canada to find more company friendly environments.

If this tax increase goes through, which sector is next ?

Where is the call for Pharmaceuticals & Health Care to have tax increases ?
Why not tax the earning at Churches, they pay nothing.

Remember who is going to pay for all these taxes in the end, the consumer. Don't kid yourself to think other wise. Companies & Shareholders don't like loosing money, they are not going to eat this. It is the consumer in the end that will pay for this. Some are not smart enough to see this, they think taxing the big bad corporation is a good thing.....

 

they are subsidies, its money the government gives to companies. so with your logic would you say it would be fair to give 16 year olds subsidies to buy cars with? but wait thats socialist

 

You ever feel like your banging your head against a wall SSCULLY?

 

I see that they serve a purpose but when we are in debt, why limit ourselves? How about cutting the subsidies in half?

 

I am not suggesting bringing the top down. The reality is that wages in places like China are not going up fast enough to allow American workers to be competitive.

When the day comes that China's labor is more expensive, companies will flee there and look to cheaper markets. Maybe Africa or South America.

I would love to see the wages around the world go up. If no other reason but to allow Americans to be able to get their jobs back.

The idea that employers would run back to the US if there was even lower taxes or less regulation is foolish. If I can pay some Chinese person 17 cents an hour and I know I can't pay an American less than $8 an hour...it is really easy.

 

People lead the lives they wish to on Facebook. If you air all of your dirty laundry there it is going to be a cesspool.

I think it is cool to reconnect to people you used to hang out with. It also can make you realize why you broke off contact with those people too.

I don't blame Facebook for problems it causes...kind of like gun...guns don't kill...people do.

 

What does a company do with excess money (also known as profit)? They give pay raises, bonuses and pay dividends. They also reinvest to create more jobs. So In my world companies would not have to pay taxes. Taxes would be paid by the people who are actually receiving it not a pass through entity like a company.

 

Right now the reason American companies are coming back to the US is quality. The Chinese companies have issues with quality control. When they ship out something that does not meet standard it takes a very long time to correct the problem. If a company orders 100 pots in August for Christmas. They might be delivered in October. If they do not meet standards then the shipment will not arrive until around Christmas. This means the company will lose many sales due to the poor quality. There are many companies returning manufacturing back to the US simply for this reason. If you are buying the cheap stuff from Walmart you are fine, but when you start buying the higher end stuff it has to meet quality expectations.

 

Time for facts, since you won't do fact checking on your own:

They are accounting practices as in the term ( by congress )
Capitol Equipment. - Oil in the ground is treated as capitol equipment, and the company can write part of it off now ( as in an expense that lowers the tax bill ).
Domestic Manufacturing tax deduction - 1.7B
- Actually every company gets this, including Menards Johnson Controls, GM, Ford, etc.
foreign tax credit ( the credit for taxes paid in other countries )
- GE & McDonalds, Walmart, Ford, GM, etc also get this
Intangible drilling costs
- Oil companies can take this write off straight away, vs over the life of the investment, say in an oil field ( this is specific to oil companies ).

out of this list ( and not all of them are oil company specific ) where does it say anything about money that the government pays to the oil company ?
- Hint : None, that is because the "subsidy" you talk about are really tax breaks, and most not specific to oil companies.

I guess you did not feel like doing your own leg work, and would rather just patriot what the MSM is telling you.

Here is some food for thought, the Q1FY11 results from XOM.
$ 10.65 B in profits.
Taxes paid in Q1FY11 : $ 8B or 42%

Wow, you are right, the oil companies have it so easy...

No, that is what you are saying is fair, you already getting the "subsidy" and wanting to get more.
I was saying fair was you stop getting this "subsidy" and get a tax increase, to say about 50% in federal income tax seems about right, by what you claim is fair for the 'big bad oil companies, holding us hostage'

Guess what is going to pay the price, the 73% of after tax profits that are put back into R&D. If the profits are diminished by a tax increase ( while GE, McD, Menards, and a list of others still get them ), that means less going to make sure when you are 55 YO, you are not sitting in the dark.

The $ 4.3 B not being collected due to the way accounting ( for all companies, less 1 item ) is per year, which is less than 1% of the deficit for this year alone.

If the Senate stops trying to grab headlines, and only pulls the 1 special deduction that oil companies get ( rather then listing ALL the items, and forgetting to tell you all US companies that qualify get them ), that would be worth $ 780 M / year.
Congratulations, you have been duped by the Media once again, to the benefit of the Democratic Party.
I know Grobles grandson or granddaughter works for the MSM somewhere.

Want to talk about an oil company subsidy, let's see, who did Obama loan a bunch of money to : Petrobras of Brazil back in 2009 to the tune of $ 2B.
This is an unsecured loan for a new type of deep drilling. If it goes bust, kiss the $ 2B good bye. If it does work, we stand to make about 8% on the money. 8% ROI for a all or nothing risk, sounds like a bad idea.
Where was your outrage when your boy Obama did this ?

How about the Senate stop trying to pull the spot light off their stupidity in the Budget work by shining it on oil companies, and tell the American public the truth?
They are targeting Oil companies, as it is near and dear to everyone, and they are going to try to pass a bill that removes the way they do taxes, while leaving every other US company ( including Walmart ) alone.
In other words a Bill of Attainder.
They are saying it is OK to single out a specific group, and treat them different, when they do it.

If you do not start doing your own legwork, you are going to look like the masses in "1984", staring at the screen soaking it all in.