Is there something called Windfall Profits Tax and would Profits

[Winterblues]

of (and I am speaking Net Profit here, after ALL expenses have been paid) of Over One Hundred Million Dollars a Day by Exxon. Is this not a "Windfall" and should it not be taxed heavily?

[aquart]

1. Yes. It should.

Next question.

But only an idiot would ask for a percentage of the net profits. There is NEVER a percentage of net profits for participants. You ask for a percentage of the gross or you get NOTHING.

[IntravenousDemilo]

2. Perhaps, but IS there such a law?

When I was little, I'd heard of something called "windfall profit laws", but they seem to have been rescinded in the last 40 years because I never hear about them anymore. Did they fall by the wayside, victims of rampant capitalism, or did they never exist in the first place?

[Rageneau]

3. As I remember, they were just about to institute one when, suddenly, there was no oil.

[One_Life_To_Give]

4. Tax was repealed

under the argument that it was inhibiting more speculative oil ventures.

Should never cap based on a fixed rate. Need to concider the amount of Capital Employed. $1Million profit on $1.00 employed is excessive. $100million on $1Trillion employed is a loss

[Winterblues]

5. One hundred million dollars a day Net Profit is not a loss

Unless of course you reside in the Bush* Administration..

[One_Life_To_Give]

6. Don't go into Buisiness then

If any buisiness can't get a better return on it's investment (Capital employed) than putting the money in a Money Market or CD. Then they are loosing money and should't be in buisiness and won't be able to stay in buisiness for long.

edit to add

$100 Million/ day is $36.5 Billion per year.

$1Trillion put in CD's at 5% yields $50 Billion per year.

[Winterblues]

7. They are bragging about the largest Corporate Profits in History

of 40.8 Billion dollars, and you suggest they don't know how to run their business. Pretty arrogant wouldn't you say..:shrug: Maybe you are just talking out your ass.

[One_Life_To_Give]

9. I said it depends on Capital Employed

What we should be talking about is the rate of profits they are making. Dollars are meaningless without knowing how much total capital is employed. Are they making a 15% ROI (good but not exceptional) or a 40% ROI. It would also be good to know what it was during the 90's as well. So perhaps a 10-20yr rolling average. Tell me how that compares to Microsoft, Cisco, GE, etc.

On edit Reuters is listing Exxon with a net profit of 10.37% with a 5yr average of 8.88%, both conciderably under the S&P 500 averages.

[RB TexLa]

8. A profit of around 10% wouldn't be called a windfall by anyone