Last week, after Exxon Mobil (XOM) published record quarterly profits of $9.9 billion, Senate Majority Leader Bill Frist called for hearings to see whether a windfall profits tax should be imposed. Checking the SEC 10-Q filing reveals the following:
Now, let's break this down.
Exxon Mobil paid $25.8 BILLION in taxes the 3rd Quarter. They were in a 41.8% tax bracket. This means that they took in about $61.7 Billion and were left with around $35.9 Billion. After their expenditures, they profited less than 17% of their total earnings.
Finally, the citizens and government officials seem to be really upset that Exxon Mobil made nearly $10 Billion in the quarter. Putting this chart to practical use, please note that the Government profited $4 Billion more in 3Q 2005 than in 3Q 2004. We have to have some accountability here. The government took in nearly three times more money ($25 Billion) than Exxon's net profits ($9.9 Billion) and they are wanting more.
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