Last week, the false claim that ExxonMobil paid “zero taxes in 2009” made another appearance in the political arena. The facts don’t support this claim, but for many it proves too good to pass up when engaging in political theater.
Claims that ExxonMobil did not pay taxes in 2009 are just plain incorrect. The myth started with a misreading of our 2009 10-K filing with the Securities and Exchange Commission, and it’s now being perpetuated for all kinds of reasons.
So, let me set the record straight.
In 2009 specifically, ExxonMobil’s total taxes and duties to the U.S. government and its subdivisions exceeded $7.7 billion, an amount that includes ExxonMobil’s U.S. income tax expense related to 2009 activities of approximately $500 million. Our U.S. income tax expenses over the last five years alone reach almost $20 billion.
Furthermore, one only has to look at ExxonMobil’s previous tax bills to realize that any claim we don’t pay taxes is absurd.
ExxonMobil is one of the country’s largest taxpayers, having incurred a total U.S. tax expense of $60 billion over the past five years – a tax cost that exceeded our U.S. earnings in that same period by $19 billion. Simply stated, for every dollar of net earnings in the U.S. between 2005 and 2009, we paid almost $1.50 in taxes to federal, state and local governments.
We are not only a large source of revenue for the government through taxes, but we also continue investing substantial sums even in a weak economy. While others have cut back, ExxonMobil made capital and exploration investments of $26.1 billion in 2008 and $27.1 billion in 2009. We invested nearly $11 billion directly in U.S. operations during this time, generating jobs and other economic benefits.
And for those who still say oil and natural gas companies “don’t pay their fair share” compared to other companies, consider this: ExxonMobil’s effective tax rate for 2009 was about 47 percent; a recent study found that the tax rate for U.S. oil and gas companies is about 20 points higher than the rest of the S&P Industrials. I’d consider that more than our fair share.
ExxonMobil’s activities add billions of dollars a year to the U.S. economy through our tax obligations and our business investments, and federal, state, and local government budgets all benefit.
When it comes to political theater, it’s time for a new line – because the old line about ExxonMobil not paying taxes just isn’t true.
As far as the popular myth about your company taxes goes, anyone of intelligence knows you can’t believe a word uttered by the “eco-progressive” propaganda machine, which includes almost all of the left wing media! Unfortunately our country is infected by “eco-radicalism”, and their converts refuse to let common sense or facts get in the way of their extremist hatred of “fossil fuels” of all kinds! They will never accept the continued use of oil and gas even if it leads to the collapse of the world economy, as a matter of fact many of these radicals desire to use the abolition of all fossil fuels to cripple and destroy what they consider the imperialistic United States! I believe the time is near when folks who desire an affluent, modernistic society will have no choice but sever our affiliations with all “eco-progressives” and when that happens I will gladly embrace a thriving oil and gas industry in an effort to afford my grand children same cool, warm, job rich environment that the oil industry has given me since 1964!
Liberal media? 80% of current talking heads are conservative!! The media is PRIVATELY OWNED BY CONSERVATIVES. You are extremely misinformed, Mr. Stone.
Though, I won’t worry — oil is on the decline, and we’ll run out at some point anyway. So we’ll be forced to rethink things. I just hope that happens before the planet decides to wipe us out. Your grandkids will see your opinion here as archaic and backwards, as climate change will be even more real when they’re teenagers. Sad but undeniably true (unless you don’t believe in science).
The reason the private media works is it can survive without government grants unlike the liberal media.
So the oil companies pay trillion in taxes (which they got from us buying at the pump) and the BIG government spends it like if it was a “renewable” unlimited fund. GE on the other hand (largest company in the world) pays no taxes… So if we cut all of the oil out – where is the government going to get more money??? I guess John Wyatt will be happy to open his pocket more.
Then you are going to say – well people who make more money should pay more (penalize people who succeed) – hmmm with that logic if your kids get an “A” for working hard and mine gets a “C” then everybody should get a “B” just to be FAIR.
You like big government then you pay for it – the rest of hard working Americans will keep on trucking…