Update: I returned from my walk to discover Blogger deleted the last half of my post today. I usually have a copy, just in case, but apparently this time I forgot to save one before I hit the “Publish” button.
Senator Claire McCaskill (D-MO) appeared on Greg Knapp’s show on KCMO this morning. She repeated her performance that caused KCMO’s previous morning host to ban her from future appearances. Greg Knapp’s temper, so far, is still under control. Her responses were typical for a democrat…talk over the host, don’t answer the question, keep to the party talking points.
When asked about the liberal claim that oil companies receive subsidies, she repeated the usual lie. When asked to prove the claim, she said she didn’t have the information readily at hand. When pressed, she parroted the New York Times article from last year about oil lease royalties. When American oil companies operate in US and foreign countries, they pay royalties to the governments for every barrel pumped. Some countries call it a usage tax. The US calls it a royalty.
While the name “royalties” is used, in reality it is a tax. A cost of doing business. The oil companies declare those costs on their US tax returns.
The dems call that tax deduction a subsidy.
According to the SEC, the top three Oil Companies in the US paid over 40% of their revenues to the government in taxes. In comparison, the top five computer companies paid about half that rate in taxes.
Mark J. Perry, a professor of Economics at the University of Michigan, created the table below to compare Oil revenues, tax rates and profit margins with those of the largest computer companies. See who has the higher profit margin. See who has the higher tax rates. What is good for one should be good for the other, no?
|Big 5 – Q2 2011||Sales (b)||Profits (b)||Profit Margin||Tax Rate|
|Totals ($) / Avg. (%)||$488,471||$36,439||7.46%||40.80%|
|Big 8 – Q2 1011|
|Totals ($)/Avg. (%)||$151,998||$27,559||25.08%||19.81%|
Real class there, Claire. Real class.