Is it fair that Exxon/Mobile paid almost 1/2 of it's operating income in taxes in the quarter ending 6/08?

Question

In the quarter ending 6/08, Exxon/Mobil's operating income was $22,206,000. They paid $10,526,00 in taxes that quarter. Is it fair to the Exxon/Mobil shareholder?

Some of those profits go directly to their shareholders as dividends. That money will then be taxed again as shareholder income. Is it fair to tax that money twice?

Answer 1

They can do with the money as they please. I can assure you that those tax profits wouldn't have affected the shareholders as the taxes are figured in advance. If they posted lower than wanted income and they had this number set... then they're going to pay this number.

Answer 2

No it is not fair.  But, like Putin, Dems want to confiscate much of these oil companies.

Answer 3

Oil Companies are taxed by the barrel of oil out of the ground- then taxed by the gallon of gasoline that is produced - then we are taxed per gallon we purchase. Thanks to the Democrats 60 percent of our money is taxed in hidden places like telephone, electric, home owner ship purchases. and of course our pay check - WHEN IS ENOUGH ENOUGH.

Of course it is not fair but the left wing liberals are clueless as to the real taxes we pay.  

Answer 4

Mind my asking what their definition of operating income is, and how it differs from income?  Or profit.

That's when I can let you know those things as its totally dependent on how much other money they made, that isn't included under operating income, that makes it fair or not.

Since no shareholder is ever guaranteed a profit, let alone a large one, they take their chances, and in this case, with Exxon reporting some of the largest profits historically, I'm not apt to cry for them.

As a simple middle class consumer, all my money is what I have left from income taxes, when I buy something I pay a sales tax, that's also being taxed twice, no one wants to relieve me of this burden.

So yes, I'd say its fair.

Republicans have run things for six of the last seven years, its fun and games for the simple minded to pretend its the fault of Democrats, but its not true.

Taxes have actually risen under the Republicans and they will continue to rise due to unrestrained Repubican spending on the war, with deferred payments due in 2010.

So when taxes must rise to meet the money already spent by Republicans, don't be fooled by the rhetoric, its not the Democrats fault, they just got stuck with the bill.

I don't pretend to be a CPA, so I asked a question to clear things up. Too many people come on here and throw terms around without being clear as to exactly what they mean.

Sometimes terms can be used differently, like operating income, and operating profit.

One thing I have learned is that when you stick a modifier like operating in front of a simple term like profit, you are somehow cutting the gross profit into bits and pieces to make your point, with each cut, like net or net-net, you chop off a little more of the actual profit so as to make your amount seem larger by comparision.  A sort of accounting magic.

If you wanted an CPAs answer as to that, then go to economics if you want to know if a tax is fair then you get grandmas who have paid taxes and run businesses asking you what, exactly you are talking about.

Companies like huge oil companies are famous for paying so little in taxes and getting money from the government that it makes you cry, so you question of taxing a business as to if its fair, I can answer you that when the accountants are finished its more than fair, its wonderful for the shareholder.

As income to the shareholder, of course they can pay tax again, why the heck not? Its income to them like any other form of taxable income.

Operating Income is the pre-tax, pre-interest profit from the company's  normal operations.

Perhaps you were thinking of operating profit. EBIT.