Saturday, May 24, 2008

Oil Companies Paid More Taxes Than Bottom 75%

Investor's Business Daily -- In 2006 alone, according to the American Petroleum Institute, U.S. oil companies paid some $138 billion in taxes to the IRS — and that doesn't include special oil severance, sales and use taxes companies also had to pay.

Internal Revenue Service (Table 6, p. 41) -- In 2005 (the most recent year for which data are available), the bottom 75% of all individual taxpayers (about 100 million taxpayers out of 132 million total) paid about $130.9 billion in income taxes. Adjusting by the recent average of about $5 billion in annual increases in tax revenue from individuals, it is estimated that the bottom 75% of individual taxpayers (more than 100 million individuals) paid about $136 billion in 2006.

Bottom Line: In 2006, U.S. oil companies paid more in corporate income taxes to the IRS ($138 billion) than the individual taxes paid by the more than 100 million individual taxpayers in the bottom 75% of all individual taxpayers (estimated to be $136 billion, see chart above).


At 5/25/2008 1:30 AM, Anonymous Anonymous said...

The oil companies wrote the checks for taxes but where did the money really come from?

At 5/25/2008 5:37 AM, Anonymous Anonymous said...

haha that true. the multiplier is pretty extreme in this case. assuming by "oil companies" we mean "gasoline companies," the demand for their product is fairly inelastic so most of that tax burden falls on the consumers (probably 80% of said consumers are from the bottom 75%). this sounds like a good thesis topic...

At 5/26/2008 7:14 AM, Blogger Unknown said...

May explain why governments are reluctant to challenge these companies’ profit margins.

At 5/26/2008 7:34 AM, Blogger Unknown said...

Complete spin. Two-thirds of Americans pay more in Social Security taxes than income taxes.

So the GOPers who continually talk about "income taxes" are totally misleading.

It's Social Security taxes that people pay (and ironically, are used to cover the Federal expenditures every year.)

This is a canard.


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