Today one of the presidential candidates called for a windfall profits tax on oil companies. Since dividends from Exxon fund my wife's retirement, I'm a little concerned (I'm still a working stiff). So I did a little research on Exxon and here's what I found in their annual report for 2007. These are worldwide figures, not just the US:
Sales: $400 billion (with a 'b')
Amount paid for crude oil: $200 billion
Tax payments: $100 billion
Net profit: $40 billion (mostly paid out in dividends and stock buybacks)
Net profits equal about 10% of sales and 40% of all taxes paid.
Microsoft's worldwide revenues last year were $51 billion, of which $14 billion or 28% went to the bottom line.
If Exxon is earning windfall profits, shouldn't Microsoft's profits be taxed the same way, or am I missing something here?
Sales: $400 billion (with a 'b')
Amount paid for crude oil: $200 billion
Tax payments: $100 billion
Net profit: $40 billion (mostly paid out in dividends and stock buybacks)
Net profits equal about 10% of sales and 40% of all taxes paid.
Microsoft's worldwide revenues last year were $51 billion, of which $14 billion or 28% went to the bottom line.
If Exxon is earning windfall profits, shouldn't Microsoft's profits be taxed the same way, or am I missing something here?
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