I would like a comparison of the so called subsidies to the taxes payed by the oil/gas industry.
If they are paying 20 times the tax break amount in actual payments to the federal treasury, can it be called a subsidy?
America’s Oil and Gas Industry: Paying Their Share
http://api.org/policy-and-issues/policy-items/taxes/~/media/Files/Policy/Taxes/Total_Industry_Taxes_April_2011.ashx
America’s oil and natural gas industry supports 9.2 million jobs throughout the economy and 7.5 percent of our GDP.
Our industry provides higher-than-average wages and helps ensure our nation’s energy security. In the process, the
industry generates tax revenues from operations and sales of products that contribute billions every year to federal,
state and local governments.
Major energy producers pay at least their fair share and are a tremendous source of public revenue.
Income Taxes
- $1 Trillion Total income taxes paid or incurred by major energy producers from 1980 through 2009.
- $376 Billion Total income taxes paid or incurred for the five years from 2005 to 2009 with over $110 billion paid to U.S. taxing authorities.
- $35.7 Billion Income taxes paid or incurred in 2009 alone by major energy producers.
- 41.1 percent U.S. oil and gas industry’s 2010 income tax expenses as a share of net income.
- 26.5 percent All non-oil and gas S&P Industrials income tax expenses for 2010.
Non-Income and Excise Taxes
- $362 Billion Excise taxes paid on petroleum products to U.S. taxing authorities by the oil and natural gas industry from 2005-2009.
- $68 Billion Other non-income taxes paid to U.S taxing authorities from 2005-2009, not including excise taxes collected and remitted on petroleum products.
Rents, Royalties, and Fees
- $30 Billion Land use fees paid to the U.S. government between 2008 and 2010, over $5 billion more than the 2009 budgeted discretionary spending for the Department of Energy.
- $187 Billion From 1982 through 2010, the United States government collected rent, royalty, and bonus payments from the oil and gas industry totaling more than $187 billion,
with almost $96 billion having been received or accrued since 2001.
So what does this all mean? America’s oil and natural gas industry pays over $86 million every day in rents,
royalties, bonuses and income tax payments to the federal government. Calls to increase taxes on oil and natural gas
companies would undermine revenues returned to the federal government.
Using two econometric models, a Wood Mackenzie study finds that from 2011 to 2025, increased access to resources
generates $150 billion in additional government revenue; compared to increased taxes which decrease net revenues
by $128 billion.
RE: If they are paying 20 times the tax break amount in actual payments to the federal treasury, can it be called a subsidy?
Again, why is NOT TAKING MORE TAXES FROM AN OIL COMPANY’s BUSINESS considered a SUBSIDY?
If a Mafia boss usually takes 30% of your business’ earnings and then a new Don comes along and decides to only take 25%, is the Mafia now SUBSIDIZING you to the tune of 5%?
We need another word for this because to people’s minds, they believe the government is GIVING oil companies money, when in fact, they are restraining themselves from taking MORE and calling it a subsidiy.