Business & Politics: Where Do We Get the Most Value?
There’s a problem with the anti-business rhetoric being bandied about. In case we’ve forgotten, businesses create jobs – jobs that drive the economy. Businesses also pay taxes – a lot of taxes.
Quick quiz. Did you know…
• In 2011, ExxonMobil made profits after taxes of $41.4 billion on sales of $486.4 billion.
>> That’s ~ 8.5 cents in profits per dollar of sales.
• Combined taxes for ExxonMobil last year were $104.5 billion.
>> That’s ~ 21.5 cents in taxes per dollar of sales.
ExxonMobil takes the risks and the government makes 2.5 times more than the company does. This leads me to ask…
Should the government’s take be more than a company’s profits?
When the numbers stack up like this, the state becomes the majority partner in the company’s profits. Wait…what? We are still in America, right?
An important question is, “where do we get the most value?”
People need jobs. ExxonMobil provides 82,100 jobs at the moment. People also need affordable ways to move about…get to work, take care of family members, get the kids to school. If the government wasn’t taking 1/5th of the operating revenue of the company, gas prices could drop by 1/5th. That would be a price decline of MORE THAN $0.80 PER GALLON at current prices., which are over $4 a gallon.
It’s not just a numbers game, but the numbers are telling a disconcerting story about give and take. Businesses give, the government takes.