October 31, 2005
Don’t tell Chuck Schumer
WHO’S GETTING THE MOST FROM YOUR GASOLINE DOLLARS? TaxProf reports: “Since 1977, governments collected more than $1.34 trillion, after adjusting for inflation, in gasoline tax revenues—more than twice the amount of domestic profits earned by major U.S. oil companies during the same period.”
Technorati Tags: Gas+Prices Oil+Prices Oil+Profits Gas+Tax Oil+Tax
The oil business is very cyclical.
Oil companies make a lot of money when prices rise. They make a mediocre amount when prices stay the same, and they lose money when prices drop.
“Over the middle term, energy and oil profit margins rank in the middle of the ten major S & P 500 major sectors like financials, health care, and technology, which run around fifteen to twenty percent profit margins before tax”.
And the government takes half of those profit margins in even more tax.
