For Geithner, math is hard

posted at 11:30 am on February 25, 2012 by Jazz Shaw

Ed has already begun the process of digging into the President’s new tax plan, but as time goes by even more interesting tidbits emerge. One of the more unintentionally amusing ones comes to us from Tim Geithner himself, writing at the Wall Street Journal. In this detailed, fact-driven piece, Geithner points out how terribly unfair it is for U.S. energy companies to get away with paying such low taxes while raking in massive profits and living large on government subsidies.

“The effective tax rate on the energy industry in the United States today is much, much lower than the average. It’s lower because the tax code provides a substantial amount of subsidies to those private companies. We propose, for lots of reasons, mostly because we think it’s fair and more efficient, to dial some of those back.”

My, my… that does sound like a problem. Somebody should look into this at once. I mean, I don’t want to see the energy companies getting over-taxed, but they need to kick in a little something if they’re turning a profit. There’s just one problem with this complaint, though. Forbes has been tracking which companies are paying how much in taxes for some time now. Guess who actually pays the most?

America’s three biggest oil companies, ExxonMobil, Chevron and ConocoPhillips , all endure income tax burdens of more than 40%–higher than the statutory U.S. rate of 35%. Exxon, with a 45% rate, tallied $21.6 billion in worldwide income taxes for 2010.

What did some companies in other industries pay?

  • Wal-Mart – $7.1 billion (at a rate of 32.4%) in income taxes
  • Hewlett-Packard – a 21% rate
  • Google – a 20% tax rate for 2010
  • General Electric – $1.05 billion taxes on income of $14.2 billion, a tax rate of 7.4%.

Now tell me again how the energy companies are the ones getting off cheaply and requiring the attention of the tax man? We shouldn’t be too hard on Mr. Geithner, though. Math is hard.


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So is using Turbo Tax.

novaculus on February 25, 2012 at 11:32 AM

Either he’s ignorant or a liar. Pretty simple.

Akzed on February 25, 2012 at 11:35 AM

It’s not incompetence. He was chosen to manage the decline of the dollar and the USA’ significance in the world these people are evil and need to go.

tom daschle concerned on February 25, 2012 at 11:38 AM

It’s because oil companies are run by guys who look like Mr. Monopoly with the white mustache and smoking fat cigars in a back room.

John the Libertarian on February 25, 2012 at 11:38 AM

Hey, he can be two things.

azkag on February 25, 2012 at 11:39 AM

This administration throws out this BS because they know there is a lot of stupid people in this country and stupid people vote.

dirtseller on February 25, 2012 at 11:41 AM

Akzed on February 25, 2012 at 11:35 AM

Or, both. I say both. Math isn’t that hard.

Bmore on February 25, 2012 at 11:42 AM

Tim has a long history of incompetence, beginning way before the Obama Administration:

http://www.smh.com.au/opinion/obamas-economic-saviour-savaged-as-keating-lets-rip-20090306-8rk7.html

itsnotaboutme on February 25, 2012 at 11:42 AM

Turbo Timmy never was a good student.

Roy Rogers on February 25, 2012 at 11:44 AM

The effective tax rate on the energy industry in the United States today is much, much lower than the average

Story on page one of NY Times. Retraction on page 35.

dirtseller on February 25, 2012 at 11:44 AM

I think I will go with “He’s ignorant and a liar.” Seems to cover all of the bases.

BetseyRoss on February 25, 2012 at 11:45 AM

Geithner points out how terribly unfair it is for U.S. energy companies to get away with paying such low taxes while raking in massive profits and living large on government subsidies.

Well, Mr Geithner, how terribly unfair is it for such a rich guy as yourself to get away with not paying your taxes and then blaming it on your tax preparation software????

turbo

ted c on February 25, 2012 at 11:48 AM

Math is hard.

This isn’t about math. It is about fact checking which this Administration finds a terribly tedious process. Fact checking is no fun so they don’t do it.

chemman on February 25, 2012 at 11:48 AM

Both works for me. But we knew that when he was nominated.

talkingpoints on February 25, 2012 at 11:50 AM

Last time I saw in-depth competent reporting on these subsidies, it turned out that these ‘subsidies’ were tax credits made available to anyone doing manufacturing. This was done to encourage manufacturing which leads to jobs and economic growth.

Unfortunately it is no longer PC to consider the oil business as ‘manufacturing’. We moan about ‘manufacturing’ leaving the US, but have morons like BOR that get in a lather over the export of manufactured products, gasoline in this case. Maybe the proggies need a review of all the compounds that are made from crude oil.

slickwillie2001 on February 25, 2012 at 11:52 AM

Its almost funny that government claims it unfair for an energy company to make a profit, while at the same time it rakes in 18 cents for every gallon of gasoline sold in the US.

BobMbx on February 25, 2012 at 11:53 AM

What an incredibly stupid thing to say…. even from a tax dodger.

ultracon on February 25, 2012 at 11:58 AM

Is there anyone in this administration that isn’t a pathological liar and/or a world class econtard? Anyone?

Turbo Timmy also provided a rant on wealthy people proving their patriotism by having more of their income confiscated by the fed. This is rich coming from a schmuck that was a serial tax cheater.

David in ATL on February 25, 2012 at 12:02 PM

Has he ever paid his taxes?

Speakup on February 25, 2012 at 12:03 PM

Won’t matter. The lemming libs will latch onto this talking point we won’t hear the end of it.

ctmom on February 25, 2012 at 12:04 PM

Math isn’t hard for these guys. Rather, they simply do as Obama does: They lie.

GaltBlvnAtty on February 25, 2012 at 12:11 PM

Its almost funny that government claims it unfair for an energy company to make a profit, while at the same time it rakes in 18 cents for every gallon of gasoline sold in the US.

BobMbx on February 25, 2012 at 11:53 AM

You my boy seem to have forgotten what is important in this country./

CW on February 25, 2012 at 12:12 PM

Not that it is the result of policy changes by the Obama regime, but notice how the percentage correlates with how politically supportive of the One the companies are.

deepelemblues on February 25, 2012 at 12:13 PM

I’m a big boy……I use Turbo-Tax!

Tim_CA on February 25, 2012 at 12:16 PM

Anyone else just wanna barf when they see major media spouting these statements without any fact checking behind it. The masses simply swallow it whole and add the EVAL oil companies to the EVAL Wall Street and EVALLLLLLLLLLL rich.

No one thinks about Moochelle’s 17 vacations in 3 years. No one wonders about the every Wednesday night (except when the Owebamas are on vacation) fabulous Hollywood parties at the White House. No one questions the separate airplanes, expensive “date” nights, etc.

katablog.com on February 25, 2012 at 12:18 PM

BobMbx on February 25, 2012 at 11:53 AM

That was interesting. I wonder how many New Yorkers cross the state line into New Jersey to buy gas.

I know people in Western Illinois cross over to Missouri to buy cheaper gas.

Fallon on February 25, 2012 at 12:19 PM

It will be so nice when Geithner is rotting in prison for his role as head of the NY Fed in ripping off the US tax payer so his friends at Goldman Sachs could save their hides.

ReformedDeceptiCon on February 25, 2012 at 12:20 PM

And just to balance things out, Kansans also cross to MO to get gas!

katablog.com on February 25, 2012 at 12:21 PM

Won’t matter. The lemming libs will latch onto this talking point we won’t hear the end of it.

and the GOP won’t bother to make any loud corrections.

katablog.com on February 25, 2012 at 12:23 PM

Either he’s ignorant or a liar. Pretty simple.

anybody else notice how often this phrase hits it on these threads?

DanMan on February 25, 2012 at 12:24 PM

I think we’re looking at this the wrong way.

Geithner was chosen because he’s the best…at kissing Obama’s s$$. I bet Geithner got first prize in Obama’s “Reverse Limbo” contest where the one who bows forward the lowest wins.

Kingfisher on February 25, 2012 at 12:30 PM

Geithner points out how terribly unfair it is for U.S. energy companies to get away with paying such low taxes while raking in massive profits and living large on government subsidies.

Considering that the Democrats had an overwhelming majority within the Federal Government for the first half of Obama’s term, why didn’t they simply vote to cut the subsidies from the oil companies?

Kingfisher on February 25, 2012 at 12:32 PM

He’s already said he’s done after PantLoad in Chief’s first (and only.. knock on wood) term. He’s going to be lying his a$$ off every time he opens his gob.

Not that this is anything new.

BigWyo on February 25, 2012 at 12:35 PM

The man’s capacity for critical, independent thinking is zero … which is one more reason why you don’t want to have a career civil servant like Tim Geithner be the Secretary of Treasury. His greatest proficiency is in towing the political line, not hewing to reality. He will parrot whatever his puppetmasters in The White House want him to say, period, irrespective of whether it’s true.

It’s almost as embarrassing as watching Debbie What’s-Her-Name Schultz on Meet The Press. They both make Saddam Hussein’s Information Minister look like Socrates.

furytrader on February 25, 2012 at 12:38 PM

No one thinks about Moochelle’s 17 vacations in 3 years. No one wonders about the every Wednesday night (except when the Owebamas are on vacation) fabulous Hollywood parties at the White House. No one questions the separate airplanes, expensive “date” nights, etc.

katablog.com on February 25, 2012 at 12:18 PM

In proggie-world, President George W. Bush going home to the ranch for the weekend = little Bammie’s exotic vacations with a posse of hundreds and an armada of Air Force planes.

slickwillie2001 on February 25, 2012 at 12:40 PM

I wonder if they have some kind of ‘Administration Lie Pool’ going on…a weekly thing…

Who ever tells a) The most blatant outright lie or b) Tells a less offensive lie but repeats it at least 68 times on CNN,ABC,CBS…wins $250,000 deposited into the offshore account of choice or to their chosen ‘Green Energy Flop’.

BigWyo on February 25, 2012 at 12:41 PM

Stupid effer can’t figure out his own taxes, but he wants all of us to pay more.

Mr. Grump on February 25, 2012 at 12:45 PM

I wonder if they have some kind of ‘Administration Lie Pool’ going on…a weekly thing…

Who ever tells a) The most blatant outright lie or b) Tells a less offensive lie but repeats it at least 68 times on CNN, ABC, CBS… wins $250,000 deposited into the offshore account of choice or to their chosen ‘Green Energy Flop’.

BigWyo on February 25, 2012 at 12:41 PM

I think you may be on to something. Gibbsy must have retired with a fortune.

Fallon on February 25, 2012 at 12:47 PM

This administration, and indeed all Democrats, have chosen to demonize energy companies. All part of the plan to reduce America to “just another UN member.”

A pox on all their houses.

clippermiami on February 25, 2012 at 12:52 PM

So, I suppose then with his reasoning the big three should scale back production too. After all, they also pay royalties to the government for every drop they savagely squeeze from the ground. Did Tim mention that?

ericdijon on February 25, 2012 at 1:03 PM

So our Treasury Secretary is just like Barbie?

smokeyblonde on February 25, 2012 at 1:06 PM

I would like to quote… every post above this one!
EVERY one is correct!

KOOLAID2 on February 25, 2012 at 1:07 PM

Dang link!

http://www.youtube.com/watch?v=NO0cvqT1tAE

smokeyblonde on February 25, 2012 at 1:07 PM

Democrats have no ideas and no position outside of lying and skimming off the top sothey can keep meeting in fancy restaurants and resorts for “important” meetings where they get their next graft payments all lined up.

If you vote for a democrat you either have a real slug of a GOP opponent (and yes we know they are out there) or you are a mooch as well. I’m not sure how you live with yourself.

Zomcon JEM on February 25, 2012 at 1:09 PM

smokeyblonde on February 25, 2012 at 1:07 PM

Good one. LOL!

Bmore on February 25, 2012 at 1:11 PM

Doesn’t the Obama Administration (Regime) have very strong ties to General Electric? Color me shocked, SHOCKED that they are being taxed at such a low rate…Where are all the libtards that were screaming Halliburton!!Eleventy!1! just a few years ago?

GE: We bring crappy mercury-laden fluorescent bulbs to your life..and your water table…

Battlecruiser-operational on February 25, 2012 at 1:12 PM

I knew something was up when Obama came up with …

“This is one of the biggest things I’m going to be pushing back on this year, this notion that this is somehow class warfare, that we’re trying to stir up envy,” Obama said. “Nobody envies rich people, everybody wants to be rich. Everybody aspires to be rich, and everybody understands you’ve got work hard to be successful. That’s the American way.”

This “envy” thing must have polled really bad in some focus group. But that meant that something had to replace “envy.” So when I saw the Geithner statement yesterday, I knew that the latest “talking points” must have been distributed around the Administration.

I found the “privilege of being an American” breathtaking, but why must only the “rich” be so “privileged” ?

We now seem to have rights to “gay marriage,” a “living wage,” to “life,” to “”choice,” to “die,” to “know,” to “forget,” to “privacy,” to “be forgotten,” to “education,” to “work,” to “play,” to “bear arms,” to “carry,” to ‘bare legs,” to “health care,” to “research,” to “read,” to “food,” to “organise and to bargain collectively,” to “hike,” to “vote” (even when dead),” to “counsel,” to “free speech,” to “protest,” and to “remain silent.”

But alas, citizenship is now a “privilege.”

J_Crater on February 25, 2012 at 1:16 PM

I guess SMART Power!!!111!!!eleventy now equals BOLD FACE LIE Power.

You just knew when the guy became the head tax collector while being a tax cheat that lying to the Congress and the American people would be a constant feature.

jukin3 on February 25, 2012 at 1:24 PM

Either he’s ignorant or a liar. Pretty simple.

Akzed on February 25, 2012 at 11:35 AM

It could be that he’s an ignorant liar.

Not to mention, too, that he seems to believe that the American people are so stupid that they’ll believe whatever he spews.

Solaratov on February 25, 2012 at 1:25 PM

Either he’s ignorant or a liar. Pretty simple.
anybody else notice how often this phrase hits it on these threads?

DanMan on February 25, 2012 at 12:24 PM

We’re numb to it!
Every member of JugEars team for over 3 years now.

KOOLAID2 on February 25, 2012 at 1:34 PM

•General Electric – $1.05 billion taxes on income of $14.2 billion, a tax rate of 7.4%.

Wow, it certainly pays to be well-connected with the Obama administration, doesn’t it?

Where’s the outrage over this example of “corporate greed” and “not paying their fair share”?

AZCoyote on February 25, 2012 at 1:37 PM

Math isn’t hard for him, but taxes obviously are. He’s Pond Scum!

MTF on February 25, 2012 at 1:42 PM

Timmy The Tax Cheat! What did he pay again in Penalties and Interest? Let me see…carry the one, ZERO! I think it’s time Timmy The Tax Cheat pays his Fair Share!!!

Tbone McGraw on February 25, 2012 at 1:51 PM

Just saw on drudge that this fool said that the rich should pay more for ‘the privilege of being Americans’. Given his history, does that mean he’s lost that privilege and deportation proceedings should commence forthwith..?

affenhauer on February 25, 2012 at 1:52 PM

Either he’s ignorant or a liar. Pretty simple.

Akzed on February 25, 2012 at 11:35 AM

I’m positive he is both ignorant and a liar, with a bit of douchbaggery thrown in for good measure.

St Gaudens on February 25, 2012 at 1:55 PM

I wonder if they have some kind of ‘Administration Lie Pool’ going on…a weekly thing…

Who ever tells a) The most blatant outright lie or b) Tells a less offensive lie but repeats it at least 68 times on CNN, ABC, CBS… wins $250,000 deposited into the offshore account of choice or to their chosen ‘Green Energy Flop’.

BigWyo on February 25, 2012 at 12:41 PM

I think you may be on to something. Gibbsy must have retired with a fortune.

Fallon on February 25, 2012 at 12:47 PM

Here’s the 2010 winner: Giggle Fits

slickwillie2001 on February 25, 2012 at 1:56 PM

I think you may be on to something. Gibbsy must have retired with a fortune.

Fallon on February 25, 2012 at 12:47 PM

Well, the Press Secretary has to be on a handicap system…it’s their job to lie. That’s what they do.

BigWyo on February 25, 2012 at 1:59 PM

Exxon, with a 45% rate, tallied $21.6 billion in worldwide income taxes for 2010.

I don’t mean to be picky, but that’s worldwide taxes. How much did they pay in US income taxes?

Ortzinator on February 25, 2012 at 2:02 PM

Even if he oil companies were paying unusually low subsidized tax rates, at least they’re producing efficient energy that people want. But the Obamunists will rant about this mythical problem while defending subsidies to produce inefficient energy that no one wants.

We propose, for lots of reasons, mostly because we think it’s fair and more efficient, to dial some of those back.”

These guys have no business lecturing anyone as to what’s efficient, or fair for that matter. Neither of those two concepts ever enter their little heads since their primary and sole concern is power over every aspect of American life. If their policies end up being efficient or fair it’s purely by accident.

RadClown on February 25, 2012 at 2:10 PM

How much did they pay in US income taxes?

ZERO

GarandFan on February 25, 2012 at 2:14 PM

Geithner was the head of the NY Fed just prior to and during the Wall Street meltdown. The many books I’ve read on this period clearly illustrate that he was totally clueless about credit default swaps and the other toxic waste cobbled together by the Masters of the Universe. Totally clueless. And shocked, yes shocked when the meltdown began.

Yet Ogabe claimed he was The Only One who could save the financial world. The blind and clueless leading the blind and clueless.

jb34461 on February 25, 2012 at 2:25 PM

Yes, math is hard for liberals and their “feelings.”

Years ago the big newspapers were regularly bringing in 20% and higher profit margins, all while bemoaning big oil’s miserly 8% profit margins.

RJL on February 25, 2012 at 2:40 PM

Either he’s ignorant or a liar hoping we’re just as ignorant as he is. Pretty simple.

Akzed on February 25, 2012 at 11:35 AM

Better, no?

BlaxPac on February 25, 2012 at 3:05 PM

They should have let him run the FBI.

rik on February 25, 2012 at 3:25 PM

It’s just another gas tax without calling it one. It gets passed along.

elfman on February 25, 2012 at 3:46 PM

Solyndra. LightSquared.

John the Libertarian on February 25, 2012 at 4:48 PM

Barbie Geitner

BigAlSouth on February 25, 2012 at 5:25 PM

Geitner needs to be frogmarched and put away for the rest of his life.

AH_C on February 25, 2012 at 7:34 PM

This administration throws out this BS because they know there is a lot of stupid people in this country and stupid people vote.
dirtseller on February 25, 2012 at 11:41 AM

Ergo, President Obama and Vice-President Biden.

I’ve been saying this for a long time. Most people are too stupid to inquire about the politicians they vote for.

Gee, I’m a democrat so I’ll vote for the democrat.

I’m not too ashamed to say, a long time ago I used to vote that way. Never again!

These men and those who think like them need to have the light of truth shone upon them.

JohnnyD on February 25, 2012 at 8:37 PM

AH_C on February 25, 2012 at 7:34 PM

Yeah, and his huge cellmate (the one with the teardrop under his eye) can do Timmy’s hair for him. Maybe even his taxes, too.

jb34461 on February 25, 2012 at 8:43 PM

This guy is a prime example of why Obama can’t be re-hired for four more. Any chief executive that would hire a monumental ignoramus such as this guy as his chief finacial officer would be tarred and feathered by the shareholders of any major corporation in America. And yet…I have a sick feeling that that is exactly what the voting “shareholders” of America are likely to do. How in the world could this guys job approval be rising under the current economic and foreign relations turbulance. And why is no one screaming about the hypocracy of Obama campaigning for 2 years about the high gas prices being a result of G.W. Bush assisting his oil industry friends get richer and now that gas prices are 90% higher thean when Obama was sworn in it has nothing to do with the President. Where are all the democrats that squealed about Bush being responsible for $2.00 a gallon gas now that it is $4.00 a gallon with Obama at the helm.

pcola71 on February 25, 2012 at 8:48 PM

He didn’t mean the oil companies, he meant the private jet owners. They pay too little in taxes. Yeah, that’s the ticket.

Freelancer on February 26, 2012 at 2:07 AM

I know people in Western Illinois cross over to Missouri to buy cheaper gas.

Fallon on February 25, 2012 at 12:19 PM

…as do we in Kansas: Missouri tax is 7 cents/gallon lower than Kansas!!

landlines on February 26, 2012 at 2:07 AM

After he is finally forced out of Washington, Geithner will have to work very, very hard the rest of his life in order to work his way up to “merely incompetent”!!!

Frankly, I don’t think he can do it: he’ll likely get permanently stuck in “hopelessly ignorant”!!

landlines on February 26, 2012 at 2:13 AM

After he is finally forced out of Washington, Geithner will have to work very, very hard the rest of his life in order to work his way up to “merely incompetent”!!!
landlines on February 26, 2012 at 2:13 AM

100-1 he lands a cushy job in academia. After all, what are the necessary qualifications?

BigAlSouth on February 26, 2012 at 6:55 AM

So when the dems were complaining years ago about that 36 billion in profits that Exxon made remember how many newspapers put that in context by pointing out that was 10% profit?(And that they made that much because they sell a huge amount of product product and that their total taxes were 30-40%) Yup, me neither.(IE it’s nothing new for them.)

Dave_d on February 26, 2012 at 8:56 AM