The Saudi king was further placated by the agreement that ARAMCO would pay tax to him rather than to the US government in Washington. This “Golden Gimmick”, as it became known (it was secret for several years), may well have deprived the US Treasury of millions of dollars but it was considered an effective way of buying off the Saudi opposition to US support for Israel.
First off, I have no problem with anyone making a profit from their efforts. Corporations included. They are the ones controlling the system in which the world lives in today. Whether we like it or not, this is the system that Obama says we didn't build. He's right on that account. The commoner is just the servant of the players in this dark comedy. The mud and straw(men) in which the bricks are made.
But, this goes beyond just mere greed. Using the American taxpayer to subsidize the profits lost is a crime against us all. They would have made a profit anyways. Only less than than they wanted. This destroys all trust in the way they do business.
The golden gimmick came about because of the deals made in the 1940s and 50s with Venezuela. The Saudis saw this and demanded the same kind of treatment. Well, they got their deal!
Source: American Orientalism: The United States and the Middle East Since 1945 - By Douglas Little - page 55
Source: Crude Interventions: The United States, Oil and the New World (Dis) Order - By Garry Leech - page 169
Trump has preached in his campaign that corporations should be paying their fair share in taxes. This is good as it lets the American people know, in a small way, the power they have over our lives and well being.
I'd like to see further steps taken in this regard. Fair is fair. Right? Not only should this 'Golden Gimmick' be eliminated, but, all those subsidies given to the oil companies through the years should be paid back. ALL of it...from the time this gimmick came to be up until now. With interest! Perhaps, that is a bit extreme. But, crimes against the American taxpayer should be punished.
The Real Reason We Can't End Unpopular Oil Subsidies - Rachel Maddow - Air Date 3-29-12