Tuesday, November 22, 2005

TaxProf Blog: Gas Taxes Exceed Oil Companies' Profits

A little perspective on the recently hyped profits of the oil companies. Just goes to show you how out of context factoids can be used to distort truth.

1 comment:

marilynlv said...

Since gas prices have gone down in recent weeks, we haven't heard a lot about oil company profits, but rest assured they are still substantial or we probably would hear that they are losing money or not making enough. The figures used to show oil company profits are undoubtedly annual rather than monthly - so it would seem that these profits at upwards of 30 per cent or higher are an accurate fugure. One of the things proposed in the congressional hearings was that the oil companies use a small portion of those profits to assist lower income people in covering their heating and other oil related needs. This proposal was overwhelmingly rejected by the representatives of the oil companies. Maybe there should be a federal tax exemption or credit for this type of program. Another suggestion would be for a tax credit or exemption for building more refineries, which could result in less swings in the market and hopefully lower prices for the consumer.