marcus phoenix Wrote: ------------------------------------------------------- > Being exempt from income tax does not mean you’re > exempt from federal taxes. Everyone who works is > liable for payroll taxes, contributions to > Medicare and Social Security that come out of > every paycheck. There are also excise taxes on > some goods and services, most notably the 18.4 > cents per gallon tax on gasoline. The CBO found > that earners in the lowest quintile, where most of > those with no income tax liability fall, > shouldered 4.3 percent of the payroll tax burden > in 2005 and 11.1 percent of the excise taxes. > Their effective tax rate (which is calculated by > dividing taxes paid by total income) in those > categories, according to the CBO, was in fact > significantly higher than the rate of the top > quintile, although that top one-fifth of the > population had a much higher effective tax rate > for individual and corporate income taxes. So they comprise 20% of tax payers, but “shoulder” only 4.3% of payroll taxes. What portion of disbursements from payroll tax funded programs (Medicare & SS) does the lowest quintile receive? If it’s more than 4.3%, that’s a pretty good deal isn’t it?
Any information on the median income for this lowest quintile?
I think it will be funny when the Gov decides to make an example out of Exxon and tax the s–t out of them. Because the first thing Exxon will do is cut Capex for refining capacity expansion and within 5 years we will watch the median fuel price in the US reset about 10-25% higher. Wonder who Uncle Govy will blame for that? It is obscene how few taxes a company that large pays in the US, but dont think for one second everyone that lives in the US hasnt benefitted from it in some way.
@HighYielder, Your assumption that if Exxon cuts refining capacity and prices increase and other companies do not increase refining capacity to offset Exxon is weird. Think market forces; company A tries to raise prices by decreasing production; Company B increases production to meet increased demand. Your notion that Exxon is driving by some political mindset and not pure profit is again, weird!
It’s always interesting how people allow their pro or anti government viewpoints to effect their understanding of basic economics. Again weird.
Your assumption that the Govt is only going to tac Exxon and not all majors in the US is even weirder.
It’s always interesting how people allow their pro or anti government viewpoints to effect their understanding of basic economics. Again weird.
i’ve got a handle on economics. thanks so much. i said in my original post that its obscene how little tax they pay domestically. i find it amazing that one’s pro or anti government viewpoints effects their ability to read an entire post instead of immediatly becoming reactionary.
Your statement below, made the assertion that Exxon could essentially control oil prices countering acting prevailing market forces that would drive oil prices in response to prevailing economic indicators/data. P.S., You are correct I didn’t read or see your previous post but it has nothing to do with any political affiliation. You said: Because the first thing Exxon will do is cut Capex for refining capacity expansion and within 5 years we will watch the median fuel price in the US reset about 10-25% higher. Wonder who Uncle Govy will blame for that?
I never said anything about oil prices. maybe I’m not the one that has the lack of understanding here.
What does “median fuel price” mean to you? Gasoline, Kerosene, and Diesel fuels are all derived from Crude oil! What fuel does Exxon Mobil refine besides crude oil? If you say Natural Gas, well Natural gases are not “refined” but “processed”. We were talking about Exxon Mobil right? How can you talk about “median fuel price” without talking about crude oil? Please shed some light here. If I’m wrong I’ll apologize for being a wise-a**. P.S. Economics 102, crude oil prices have a direct effect on gasoline prices. You said: “Exxon will do is cut Capex for refining capacity expansion and within 5 years we will watch the median fuel price”
Gasoline demand in the US is currently growing at just over a 1% clip, which is below normal due to the economy. Refining capacity expansions have allowed for supply to keep up with demand, leading to gasoline prices to be a direct reflection on the input costs - the price of oil. Without capacity expansion - which is about 3X the cost and takes 3X as long to build domestically as it does in Asia for example - the constant demand growth fror gasoline in the US would cause a supply and demand imbalance, leading to a rise in the price of fuel. Supply goes down, demand stays static to slightly up, prices go up. Are we done?
Yep, gasoline is refined from crude oil.