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Rufus II said...

I'm not interested in what Exxon (or Apple) paid to "Various Governments" around the world.

What did they pay Here?

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PeakTrader said...

The U.S. needs to ramp-up domestic oil production substantially, including in Alaska and off the California coast.

If government gets out of the way, the U.S. will be able to collect more in taxes, more jobs will be created, oil prices will fall, etc., which are exactly what the country needs.

And here's an appropriate article for Rufus II:

Exxon hits back at gas price anger
April 28, 2011

Exxon said it has paid nearly $59 billion in U.S. taxes over the past five years, including $9.8 billion last year.

"We understand that it's simply too irresistible for many politicians in times of high oil prices and high earnings -- they feel they have to demonize our industry," said a statement from Exxon vice president Ken Cohen.

The statement argued Exxon is not to blame for the recent surge in gas prices...Exxon argued that most of its profit comes from overseas operations.

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Nicolas Martin said...

Why would anyone think it a good idea for the US government to "collect more in taxes"? Doesn't it do harm enough already?

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PeakTrader said...

Nicolas says: "Why would anyone think it a good idea for the US government to "collect more in taxes"? Doesn't it do harm enough already?"

The U.S. government is collecting too little in taxes, because there aren't enough Americans working, not because tax rates are too low.

Similarly, if U.S. oil firms produce more domestic oil, they'll pay more taxes.

The government does harm by standing in the way of employment and domestic oil production.

Also, I may add, it seems even the "Great Roubini" doesn't understand the fundamental difference between taxes and tax rates:

Nouriel Roubini On The One Big Reason To Be OPTIMISTIC About The National Debt
Apr. 20, 2011

"The United States has the most manageable fiscal issues of any major advanced economy because federal, state and local revenues as a share of GDP are very low, for cyclical and other reasons. Therefore, fiscal balance can be restored by fiscal adjustment without major economic difficulty in the near term."

"In other words, US revenue and spending can be brought closer into line via raising more revenue (as a share of GDP) and so in reality this means raising taxes."

My comment: Raising tax rates may cause a double-dip and decrease tax revenue. However, expanding the economy with current or lower tax rates will increase tax revenue.

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Ron H. said...

""The United States has the most manageable fiscal issues of any major advanced economy because federal, state and local revenues as a share of GDP are very low, for cyclical and other reasons."

What does this even mean? That of all the major economies...the US is furthest from the bottom?

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PeakTrader said...

Ron, it's code for saying something that you can say later you didn't say.

It reflects that federal tax receipts as a percentage of GDP is at the lowest level since 1949 (a little over 15% of GDP).

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