Exxon still makes less than NY per gallon

There is talk about federal tax holiday on gas, which is not nothing, but NY charges some .40 per gallon in set taxes.

gas / diesel tax - cents/g

New York

31.9

28.9

Includes 8 cents per gallon excise tax, Petroleum Business Tax of 15.2 cents per gallon for gasoline and 13.45 cents per gallon for diesel (rate increased .6 cpg 1/1/05). Statewide volume weighted average sales tax increased 6/1/04 to 8.3 for per gallon for gasoline and 7.1 cents per gallon for diesel. Also a spill tax of 0.3 cent per gallon is collected on gasoline and diesel and a petroleum testing fee of 0.05 cent per gallon is levied on gasoline. Does not include an estimated 7.9 cents per gallon for gasoline and 6.7 cents per gallon for diesel from weighted county average sales taxes that range from 3.25% to 4.75%.

The 40 cents, more or less, NY adds is more than 10 percent of the price, far more than what the "gas" companies on a historical basis make per gallon and they have to find oil, drill, process, and deliver.

The"gas" companies, as they are called, return on investment is apparently spectacular these days, over 20%. Their profits are about 10%

Questions: Would you invest billions of dollars annually to make , say, 7%? 10%? 12%? (Better start a drug cmopany) If we tax windfall profits, do we subsidize a loss year? Does the Constitution allow taxation for no reason other than some company had a great year? Should we tax MDs who have a good year? Film makers? Hot dog vendors? Does anyone care about what we are doing?

Click here for Exxon's numbers. note Exxon has better numbers than the industry. I read scotch has a 50% RoI. Take a look at GE.

GE had 173 billion dollars in revenue. The net profit is 22 billion dollars. That ratio is about 13 percent. Not exactly an ROI analysis, but it shows the company is making what I guess are windfall profits on refrigerators, plastics, and wind turbines. Shall we take their money?

Exxon made 40 billion on 404 billion in sales. So, that is a 10 percent profit. Ten percent, what a disgrace - that is less than what NY makes for no work. Then, that 10% is taxed.

What is the scary thing is that the "alternative" energy investment is being made by these companies, so if big brother takes their money, the companies ability to change our paradigm is reduced, unless you think Nancy Pelosi can use the money to invent new power sources, in which case I have bridge for you.

In the mid-term we have plenty of oil, but much of it requires exotic (expensive) drilling and/or processing and the will to act. As to additional costs, we will pay for them any event in the price. So, if you take away money from the gas companies, who can easily move off shore in response, then they will raise prices, also in response. Don't forget their profits are taxed.

Ultimately, the consumer pays all taxes. If you raise taxes, the cost is raised by that amount. All the rest is delusion, a slight of hand made to think some company is absorbing the money grab. The poor customer pays taxes.

The governments hate the idea of not having their taste of someone else's cash. The theory is take it because a profit is high the past few years; just take it. We call that Marxism or, at least, we used to. The justification for the grab: class war warfare and we have the votes to confiscate, sorry tax, anything we want.

This is true, sort of, until the entity or person moves away. This is why John Lennon et al lived in the US.