How big oil thrives

You've probably read about Exxon's record-breaking profits. For the year 2005, Exxon Mobil made $36 billion. In the fourth quarter alone, it reaped $10.71 billion. How did it do that?

Well, there are the high prices you've paid at the gas station, of course. But you've also been supporting Exxon Mobil with your tax dollars so that it doesn't have to dish out as many tax dollars of its own. It gets credits from the U.S. for taxes paid abroad. About $60 billion in tax cuts previously granted to oil companies were extended for five more years in legislation passed in the fall. And, since our congressional leaders and the Bush administration hold a special fondness for big oil, the Republican-led Congress gave oil and gas companies an additional tax break of more than $2 billion in its recently passed energy bill.

The Senate did attempt to increase big oil companies' taxes for just one year -- but Bush threatened to veto that increase if presented with a final bill that includes it (which the bill probably won't, since the House version of the bill does not contain any such increase). More about all the above may be found here.

Now, Exxcess Mobil (excuse me, I meant Exxon, of course) wants a federal court to virtually erase the $5 billion jury award it was ordered to pay as a result of the Exxon Valdez oil spill in 1989 that caused massive environmental damage when its tanker leaked about 11 million gallons of oil into Prince William Sound. Details, here.

So, no need to wonder how Exxon made all that money. Our government has been busy giving the oil companies the money you contributed to the treasury, while it cut Medicare, student loan programs, food stamps, veterans' benefits and all those other pesky programs that only benefit individuals.

PS: Check out the cartoon. And make sure the sound is on.