Big Oil Fantasies, or Snake Oil Realities?

President Obama, our community agitator in chief, urged Congress on Tuesday to take “immediate action” to end tax subsidies for oil and gas companies, and to roll back more than $4 billion “in unwarranted tax breaks” which exist only in Mr. O's twisted universe, that private universe where facts are, shall we politely say, malleable.

Chevron (CVX) made out a check for $1.3 billion in income taxes this quarter. Add in the $4.0 billion paid out in assorted other taxes (VAT, excise, "other taxes") and you get a eye-popping $5.3 billion given out to various government entities. That's an incredible 74% of its income before all tax expenses.

So, for the quarter, $1.8 billion to the shareholders, and $5.3 billion for government. Doesn't seem fair, does it? That's not any different from previous periods. For the full 2008 year, CVX paid out $19 billion in income taxes and $21 billion in "other taxes" leaving a net profit of $24 billion, a clobbering 63% in taxes.

Oddly, last year (2010) General Electric (GE) paid out a mind-numbing ZERO in federal income taxes.  Zero,  based on only 16 billion dollars revenue, after "writing off" capital costs and foreign taxes paid, among other "tax breaks."  Guess it pays to have friends in the White House.

I guess a 63 percent tax bite is "not a fair share" in BarryO's universe.  Whadda Putz!