MY TURN: Writers got facts wrong

Two prior “My Turn” letters concerning Exxon's U.S. tax liability reported contradictory "facts." Mr. Pappas (April 23, 2010) stated that Exxon paid no taxes in 2009. Mr. Morrrison (May 1, 2010) retorted “So many lies, so little space: Exxon Mobil had earnings around $310.5 billion in 2009, but they paid $15.12 billion in FIT.”

This discrepancy is easily resolved by looking at Exxon Mobil's annual financial statement, Form 10-K, for 2009 which is available online at www.sec.gov/edgar.shtml.On page 92 of this form Exxon reports to the SEC exactly what they pay in taxes. According to Exxon, they paid a total of $15.009 billion in Federal and non-U.S. (foreign) income taxes.

Foreign governments received $15.165 billion in taxes from Exxon, while the IRS paid Exxon Mobile $156 million. That's not a mistake; the IRS (that means you, the taxpayers) paid Exxon so it could turn around and pay foreign governments.

So both Mr. Morrison and Mr. Pappas are wrong. Mr. Morrison is wrong because Exxon paid no federal taxes to the U.S. — only to foreign governments. Mr. Pappas is wrong because Exxon didn't pay zero taxes; they paid less than zero taxes. That's because they received millions of your tax dollars.

By the way, Forbes.com reports that Exxon tries to limit its tax pain with the help of 20 wholly-owned subsidiaries domiciled in the Bahamas, Bermuda, and the Cayman Islands.

How many accounts do you have in Caribbean tax havens?

VERN STEVENS

Kellogg