Gross income is commonly defined as the amount of a company’s or a person’s income before all deductions or any taxpayer’s income, except that which is specifically excluded by the Internal Revenue Code, before taking deductions or taxes into account. For a business, this amount is pre-tax net sales less cost of sales.

Profit margin, Net Margin or Net Profit Ratio all refer to a measure of profitability. It is calculated using a formula and written as a percentage or a number.

For example, a company produces a loaf of bread and sells it for 10 units of currency. It cost the company 6 units of currency to produce the bread and it also had to pay an additional 2 units of currency in tax.

That makes the company’s net income 2 units of currency (10 – 6, before tax, then minus 2 for tax). Since its revenue is 10 units of currency, the profit margin would be (2 / 10) or 20%.

Now that I have explained the difference between gross income and profit margin, let’s look at how liberals exploit figures and twist words to make big oil look bad.

The first thing they do is make sure to emphasize RECORD when they are talking about oil company profits. Right away, this makes people assume, even if subconsciously, that they are being taken advantage of. If the price of gas is so high, how can oil companies be making record profits? If an oil company makes a dollar more this year, when compared to last year, that would be a record profit. Another thing you must consider is that our population increases every year, as does our consumption of gasoline and oil products. I do not think anyone would argue that our gasoline usage is decreasing. If this is so, it only makes sense that sales are going to amount to more than the year before.

I don’t think anyone would fault the oil company for making enough money to cover it’s operating cost. After all, they can’t make less than what the product cost to produce and deliver, or they would go out of business. This is why we have to look at profit margin because it shows us exactly how much money the oil companies get to keep. The average profit margin of big oil is around 8%. This means that big oil is only getting to keep 8% out of those record profits. Eight percent of the oil companies gross profits still seems like a huge amount, until you consider that companies like Microsoft have a profit margin of over 20%. That is more than twice of the actual profit kept by big oil. Why is it that you never hear liberals complaining about their greed? After all, just think how many more computers could be available for our children if Microsoft’s profit margin was only 8%. That was just one example of many companies, which have an outrageous profit margin in comparison to big oil.

Let me ask you, who do you think these greedy shareholders are in big oil anyway? The majority of them are you and I. “What?” Yep, you heard me right. I would bet that if many of you were to look into where your 401k money is going, you would find that it is being invested in oil companies. I challenge you to check and prove me wrong. Find out exactly how your money is being invested. You might be surprised.

One last think I would like to mention, is that placing higher taxes on big oil, isn’t going to hurt the oil companies. Their profit margin will stay the same. A new tax is chalked up as an operating cost and then passed on to you at the pump. This is on top of the tax that the government already charges you for purchasing fuel. They already get anywhere from 40 – 80 cents per gallon in taxes, depending on where you are located. Doesn’t that infuriate you? Isn’t it bad enough that the government has had its hand in your pocket once? Now they are trying to dupe you into paying them again by getting you to support the tax that is supposed to curb the greed of big oil. Wake up America. It isn’t big oil that is being greedy and driving up price. It is our Congress and their inane taxes and environmental restrictions, which don’t allow us to look for oil here. The moment OPEC got wind that we were drilling for our own oil, the price would drop like a rock.
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As Americans we need to stop worrying so much about the rest of the world and focus on us.
The world market is pushing the price of crude oil so we need to stop relying of foreign oil and drill in Alaska , North Dakota, Oklahoma and build a new refinery ………

We need to become self sufficient again instead of the world’s caretaker and funding wallet for every cause.

OPEC is driving the price of crude oil so we need to stop dealing with OPEC or live with someone else telling us what we are going to pay.
References :
OPEC Reference Basket of Crudes
http://www.opec.org/opecna/Latest%20Stories/DORB.asp

Wonder how much WiteOut costs per gallon?

Exactly what color is the sky in your world?

The US government makes more revenue per gallon of gas than does the evil oil companies…and they don’t do a damn thing.
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