Economic Collapse 2012 – Gas Prices, Big Oil, Taxes and Government Profit

September 27, 2012 8:42 pmViews: 608

Isn't it interesting how the government and especially President Obama like to talk about profits of corporations and especially those of Big Oil as if they are some kind of evil entity? Well, if you didn't know it, state, local and federal government as a whole collects more money from oil companies in taxes than these big oil companies make in profit.

Let's think about that for a minute. Government puts up none of the capital that goes into oil exploration oil companies do, they build none of the infrastructure such as ships and oil platforms and pipelines and refineries and all that goes into actually finding crude oil, getting it out of the ground, shipping it to points all over the globe, refining it, then shipping it to gas stations, and yet government makes more from a gallon of gas than oil companies do.

For doing what exactly?

And there's even more. Oil companies take all that risk and invest all that capital and in the process they are wildly profitable because oil is the number one used commodity in the world. There is so much gas used throughout the world that even a few cents in the price of crude oil can sway their profits vastly. Oil companies do make a lot of money, but they invest a lot. On the other hand, government invests nothing and makes on average 3.5 times the profit that oil companies do. And what does government do with all that money? Well, they are good at being flat broke because they spend so irresponsibly.

Oil companies make approximately 14 cents on a gallon of gas and all government entities combined make 48 cents per gallon. Government takes none of the risks and reaps all of the rewards when people buy gas, but they can't manage their money and state, local and federal governments are flat broke.

Is that maybe why are are facing economic collapse very soon?

What exactly does government do with that 3.5 times the profit an oil company makes that makes them go so broke?

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