Tax Policy
Presidential politics could use a dose of the facts
To hear Barack Obama in last night’s first presidential debate, you would think he was running against ExxonMobil this November given his tendency to single us out for criticism. In a discussion of ways to address the federal deficit, the president repeated incorrect claims that ExxonMobil receives what he termed “corporate welfare.” Because we’ve been pulled into this debate, I feel like asking the moderator to let me respond with several points.
An “All-of-the-Above” energy policy that makes sense for consumers and the economy
In their platforms’ energy planks, both the Democrats and the Republicans call for what each party describes as an “all-of-the-above” energy policy – a phrase intended to include everything from oil and natural gas to nuclear, coal, hydropower, and renewables. This is a welcome development, but with one major caveat.
Who makes more from sales at the pump – industry or government?
A lot of factors go into determining the price of gasoline, so it’s worthwhile every now and again to review them. A good piece in last Friday’s Wall Street Journal does just that, asking simply why gas costs what it does. The author – an analyst for a taxpayer watchdog group – gives a quick rundown of the basics, like crude oil costs, which can account for roughly three-quarters of the price consumers pay at the pump. Then there are expenses for refining, distribution and marketing. But he also reveals one slice of the gas price pie routinely overlooked by those who criticize energy companies or gas station owners for high prices. He writes, “The truth is that governments rake in a larger profit at the pump than anyone,” including companies like ExxonMobil.
Big oil earnings = big taxes, big investments, big job creation
It seems like every time we announce ExxonMobil’s earnings, critics jump on soapboxes to demand that we and others in the industry pay more in taxes, predictably calling for the repeal of so-called “subsidies” to the industry that are nothing more than standard tax provisions. Today was no exception. We reported our earnings, and before you could say “Big Oil,” the usual critics were urging the U.S. government to punish ExxonMobil.
Politics no excuse for misleading on subsidies
American politics has a long and colorful history of hyperbole and exaggeration. Even still, the fact we are entering the thick of another campaign season shouldn’t give license to politicians to stretch the bounds of truth too far. That’s why it’s so disappointing to see campaign advertising from the president of the United States single out a leading American company with a claim that doesn’t hold water.
ExxonMobil tax facts – the ones you won’t see in the news
In the lead up to “Tax Day,” you’ve likely already seen media reports with all kinds of facts and figures about what individuals and companies owe in taxes. ExxonMobil’s taxes are, not surprisingly, a favorite subject of debate. So I thought I would share a few facts – the ones you likely won’t see in the news.
