Bolstering big oil over GE

Big Oil Bonanza!

Big oil is blowing us away helping to drive the markets and reflecting the rebounding global economy and the growing risk to supply. Now the Obama administration wants to penalize "Big Oil," one sector of our economy that is actually creating jobs and actually helping lead the economy out of recession. This tired attack on big oil and this fraud that oil companies get preferred tax breaks and subsidies are ridiculous and would actually be funny if it were not so sad. While Obama continues to promise the creation of billions of so called "green jobs," he is exporting our oil producing jobs to other countries.

Now this latest charge that big oil gets "unwarranted" tax breaks for oil companies as a way to prevent Americans from facing persistently high gasoline prices, which are reaching $4 a gallon" is another misrepresentation of the facts that is leading this country down a very dangerous path of penalizing successful, efficient business and prop up inefficient business that might serve the greater good to let them die on the vine.

Obama's distaste for oil companies is very clear but this ridiculous charge was exposed in a very spirited rebuttal from Exxon Mobil. According to Exxon Mobil their total taxes and duties to the U.S. government topped $9.8 billion, which includes an income tax expense of $1.6 billion. They go on to say that over the past five years, Exxon incurred a total U.S. tax expense of almost $59 billion, which is $18 billion more than they earned in the United States during the same period. In other words, Exxon paid more in US taxes than they actually made.

The reason why that's true is that the U.S. takes money to support alternative energy companies like, for example, GE that paid zero, zippo, nothing in taxes last year! Now you would think that the Obama administration would embrace a company that creates jobs and paid that kind of tax and have and helped keep our deficit from being larger! Yet instead he embraced the company that paid no taxes. Obama named GE's chief executive, Jeffrey Immelt, as the head of a Council on Jobs and Competitiveness. Exxon did not dodge U.S. tax and point out that their earnings are from operations in more than 100 countries around the world.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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