The Sin of Profit in America

I have read with amusement the gyrations of the left over reports of Exon Mobile making record profits during the most recent quarter. The blogs are full of what a shameful thing it is during these hard times that a Corporation should be so successful. 11 Billion Dollars profit in just three months. What does it say about our culture when citizens chastise a Company that employs (directly) almost 80,000 people. This does not include the employees of the thousands of companies that work indirectly for Exon. But somehow a company that has a successful business model and employes tens of thousands workers is to be scorned by those on the left.

Of course the reporting of profit is a very shallow look at a company's balance sheet. But shallow is where many in our culture reside. In fact, I've had recent posts about this issue and the response I get is usually personal attacks. What does it say about an argument that is reduced to such response? It tells me that the responder is basing opinion on how they feel about the subject. Not what they think. If they think at all.

In my review of Exon's financial status there are a couple of items that need mention. The first is that while Exon is making a profit they are also paying huge amounts worldwide in taxes. The effective tax rate for Exon Mobile last year was 47% (this of course does not include the taxes paid on gains or dividends by the Company's shareholders). In the last 5 years Exon has paid $59-Billion in taxes. The second item worth mention is that while the politicians are quick to pile on by threatening to remove tax breaks (47% isn't enough of a tax rate for some in the political class) they seem to completely ignore the reality that taxes have consequences. Let's say you tax Exon another 5 or 10 billion. Are the politicians so blinded by their feelings they actually believe that the money would come from Exon? Those taxes would be immediately be passed to the consumer. If gas prices at the pump are not high enough for you, repeal what tax breaks are available to Exon and you'll see more of an increase.

Our President continues to work hard to "spread the wealth around" and that is exactly what a Company like Exon Mobile does. The difference between their efforts and our President's is the President is using the full force of the Federal Government while Exon uses the marketplace where consumers/workers have a choice whether or not to participate.

William Rusher R.I.P.

He changed American politics forever. William Rusher was publisher of the National Review for almost 30 years. I had occasion to lunch with him several times in San Francisco. Several years ago I was doing a radio talk show on a leading station. On more than one occasion I had gleaned material from Mr. Rusher’s work. At one point I wrote to N.R. telling him I was an admirer of his work. About two weeks later I received a phone call inviting me to lunch. Thus began an infrequent but sometimes regular relationship to lunch, discuss politics, even poetry on occasion.

        His political success was highlighted in the 1960’s when he and others successfully launched the Republican Presidential campaign of Barry Goldwater (despite the Arizona Senators loss to LBJ). That move mortally wounded the liberal, east-coast wing of the Republican Party and made way for the Conservatism of Ronald Reagan.

        I shall never forget the warmth and encouragement I received from this man. William (Bill) Rusher was 87. R.I.P.

Why do Government Shut Downs Go Unreported, Mostly?

Is anyone else getting a bit tired of the “government shutdown” hype?  Perhaps it’s time for a little perspective.  So, let me get this straight, non-essential offices of the government will shut down Friday at midnight unless Congress gets some sort of an agreement to continue funding the feds? (I’ll pass the opportunity here to ask why we ever have any government non-essential services).

Let’s assume that most government workers don’t work on Saturday or Sunday anyway so there won’t be much missing of these non-essential services over the weekend. Then comes Monday when these employees providing all these (non-essential) services would suit up and show up to do their duty (non-essentially). But wait, they don’t always work Monday through Friday do they?

Looking at the federal calendar I notice these (non-essential) employees providing these (non-essential) services have eleven federal holidays each and every year. Can we assume that the government is shut down on those days?

So now I’m thinking “so what if we miss a few more days of these non-essential services?” since we don’t have them any Saturday or Sunday or 11 other days out of the year.

Maybe I’m missing something here. If the government is already shut down over 110 days a year what’s so threatening about another shutdown if it might save a few dollars?

How You Too Can Go Broke

Here’s your dilemma:  Your household income is about $60,000 a year yet you are spending $83,662. How long will you last?  It’s hard for any working stiff to get a handle on a federal budget of over $3 trillion so I reduce it to these numbers that may be a little closer to home. Your household income of $60,000 represents the total revenue confiscated from taxpayers by the federal government. Your spending represents the government’s spending.

Would cutting $335 a year out of that almost $84,000 budget make your household solvent? That’s the “extreme” proposal on the table before Congress right now. It’s a proposal the Democrats can’t accept because it’s too extreme. Cutting $335 out of an almost $84,000 annual budget will starve children, kill old people and put hundreds of thousands out of work.

Here’s the question before the country:  can you expect Democrats to be serious about our country’s dire financial crises if they can’t even cut $335 out of an $84,000 budget?

Any wonder why the electorate rejected liberalism (again) in November?