Just One Corporation, Exxon Mobil, Paid Almost As Much in Income Taxes in 2007 As The Bottom 50%
According to IRS tax data just released, the bottom 50% of taxpayers paid $32.26 billion in income taxes in 2007, and the size of that group is 70.53 million U.S. taxpayers. In the same year, just one American corporation, Exxon Mobil, paid $29.86 billion in income taxes to various governments (updated), or almost as much as more than 70 million Americans paid in U.S. income taxes (see chart above). 
15 Comments:
That bottom 50% paid a good chunk of that exxon tax bill, since most of it is just passed on in the form of higher gas prices.
No surprise there. If memory serves correctly, this has been the case for the past several years. Hasn't changed anyone's mind yet on big bad Exxon.
Quote from michwolvrr: "That bottom 50% paid a good chunk of that exxon tax bill, since most of it is just passed on in the form of higher gas prices."
Does that mean Exxon gets credit for all of the taxes paid by it's employees?
Here's an idea, don't by anything from Exxon, or anything from anybody else buying anything from Exxon, then you won't be implicated.
michwolvrr - you are exactly right...which shows that politicians who prattle on about raising corporate taxes or having a "windfall profits tax" on "Big Oil" are simply grandstanding. Corporations do not pay taxes. Consumers do.
Also a good portion of those taxes were paid by the Exxon-Mobil stockholders in the form of lower dividends. Do any of you have Exxon-Mobil (XOM) stock in your 401(k), pension plan, mutual fund?
you are quoting a very incorrect number for income taxes for exxon, they paid only $4.7 billion in FEDERAL income taxes, the remainder was paid to other countries in income taxes, check the 10-k before posting please.
Herbert: I updated the post to clarify that Exxon paid $29.86 billion in corporate income taxes to various governments, not just the U.S.
Sorry I didn't point that out in the original post.
Isn't this an indication to all Americans that there is no need to run after the bottom 50% of taxpayers? If you just let them keep the pennies inside their pockets thus they can buy more gasoline from Exxon-Mobile thus my XOM stock will appreciate thus the entire economy will rev up. How much we spend at IRS on paperwork of running after the poor for their pennies? More efficient to let them spend the pennies on gasoline and million of other products which would give us much more revenue from Shell, Wal★Mart and thousands of other companies. Flat-tax be damned. It is more efficient to give everyone, including the destitute a $20,000,00 personal exemption. This would cost tax preparers a fortune but would save America the Beautiful two fortunes.
Think about it.
Although a little off topic, anyone else surprised that the gold price is performing so well lately, as described here: http://www.bloomberg.com/apps/news?pid=20601116&sid=aA3eLD2EZ5CM
Although a little off topic, anyone else surprised that the gold price is performing so well lately, as shown by Gold Price
Some more recent data:
Exxon's profit plunges by 66% as revenue declined by 46%
michwolvrr,
The taxes in question are corporate income taxes not gas taxes paid by the public. This is a very common misconception because most people have very limited exposure to financial accounting. Hopefully, the following will clarify the issue.
These 2 taxes are handled completely differently in accounting.
Gas taxes are not considered as an expense to the business but as monies held in trust for the government. A balance sheet account (liability account) is used to record the amount owing to the government when a sale is made. The account is zeroed out when the tax is remitted to the government. Any monies owing at the end of the year would be reflected on the balance sheet as a current liability. Therefore, the gas tax does not appear on the income statement.
The income statement shows the revenues less expenses incurred during the fiscal period. Corporate tax is recorded as an expense against revenue. Revenue - expenses = Net income. At the end of the period, all of the revenue and expense accounts are zeroed out and the difference (the net income) is transferred to Retained Earnings, a balance sheet account.
Hope this helps.
"That bottom 50% paid a good chunk of that exxon tax bill"...
Hmmm, that same 50% also voted into office the politicos that put those taxes on Exxon...
"Corporations do not pay taxes. Consumers do"...
Good point but wouldn't it be a bit more accurate to say, 'voters pay for the taxes levied on Exxon'?
We get the government we deserve...
What does 'the bottom 50%' include? Is it the bottom 50% of tax payers? If so, the 70 Million figure sounds low.
Mark here seems to love talking about how much money those at the top are paying in taxes, poor them.
Using the same IRS data the bottom 50% made half as much money as the top 1%. Or 70 million people made less than half as much as 1.5 million. I guess they're not paying their fair share of the tax burden right?
Exxon Mobils revenue (this is the equivalent to an individuals income) was roughly half that of the bottom 50% as well. Or 1 company made half as much money as 70 million people. But since its one company it should only pay 1 / 70millionth as much in taxes right? That's fair.
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