Posted on 07/03/2010 3:23:07 PM PDT by reaganaut1
...
an examination of the American tax code indicates that oil production is among the most heavily subsidized businesses, with tax breaks available at virtually every stage of the exploration and extraction process.
According to the most recent study by the Congressional Budget Office, released in 2005, capital investments like oil field leases and drilling equipment are taxed at an effective rate of 9 percent, significantly lower than the overall rate of 25 percent for businesses in general and lower than virtually any other industry.
And for many small and midsize oil companies, the tax on capital investments is so low that it is more than eliminated by various credits. These companies’ returns on those investments are often higher after taxes than before.
“The flow of revenues to oil companies is like the gusher at the bottom of the Gulf of Mexico: heavy and constant,” said Senator Robert Menendez, Democrat of New Jersey, who has worked alongside the Obama administration on a bill that would cut $20 billion in oil industry tax breaks over the next decade. “There is no reason for these corporations to shortchange the American taxpayer.”
Oil industry officials say that the tax breaks, which average about $4 billion a year according to various government reports, are a bargain for taxpayers. By helping producers weather market fluctuations and invest in technology, tax incentives are supporting an industry that the officials say provides 9.2 million jobs.
The American Petroleum Institute, an industry advocacy group, argues that even with subsidies, oil producers paid or incurred $280 billion in American income taxes from 2006 to 2008, and pay a higher percentage of their earnings in taxes than most other American corporations.
(Excerpt) Read more at nytimes.com ...
The NYT pays no corporate income tax because it deservedly loses money.
There’s the weaselly reasoning again. “It’s not private money, it’s money that belongs to the g ummit, so we gummitcrats are subsidizing you rather than just letting you keep more of what you earned.”
America fought a bloody war to get away from King George over less.
Leftist newspapers, the ones who did their best to make Hussein President, will soon officially, rather than nominally, be government owned newspapers. Hussein’s thugs will decide which columnists deserve the honor of praising The Zero.
Effective tax on production from most domestic wells is well over 50%—severance taxes; state and federal income tax on the working interest owners.
Shoot, anyone who kisses the Bummer’s, er, bum, will get space in the paper. It’s not like once it becomes a government organ, it is going to suffer budget problems any more until the whole affair goes down the tubes.
Who to trust? The API, which may accidentally have some idea about what goes on in the oil business OR the New York Times (a non-profit newspaper company) and some Senator from New Jersey who couldn’t change the oil in a lawnmower if you held a gun to his head.
Wow, this is a tough call.
/sarc
Pardon me for being simple, but since when is a tax break a subsidy?
Stop all businesses subsidizing and lower all personal and corporate taxes. When one group is subsidized, another group has to pick up the slack.
A above board national sale tax replacing personal and corporate taxes with no exception is needed. Not an added value tax where the tax rates are hidden.
Since demonizing capitalism became fashionable is when it became okay. Letting a company keep their money is not the same as providing tax money to someone for no reason other than they have a hand out. Ralph Nader probably played up business subsidy and subsidising business the most to make it seem bad.
You are saying when one group contributes less to the pot, someone else has to pick up the slack. I say quit spending Congress. No corporation ever paid taxes, individuals do.
‘No corporation ever paid taxes, individuals do.’
You are absolutely RIGHT. All taxes are paid by the end user of goods and services.
But (and this happens all the time)If one bussiness, such as a bank HQ, we’ll call bank X) get a tax break to move from one city to another, then the other business in that area has to be taxed more in order to cover the cost of city services to the bank X. So consumers of bank Y has to pay a little more than consumers who deal with bank X.
Oil Spill Liability Trust Fund (OSLTF)
any reason people are neglecting this?
Thanks for clearing that up. Can’t wait for the day when demonizing socialism is back in style.
Great tagline.
I recall the wailing in 2008 when Exxon made about $1400 profit per second. It seemed alot to me till I read they paid about $4000 per second in tax......think about it.
It is no secret that some businesses receive tax breaks and other subsidies other types of busineeses don’t receive, more often due to their political influence than for any legitimate financial reason.
This is more crony capitalism than free market capitalism.
Leftists reflexively attack all businesses.
I am unclear why conservatives should reply by reflexively defending all the actions of big business, which seldom responds in kind.
It is no secret that some businesses receive tax breaks and other subsidies other types of busineeses don’t receive, more often due to their political influence than for any legitimate financial reason.
This is more crony capitalism than free market capitalism.
Leftists reflexively attack all businesses.
I am unclear why conservatives should reply by reflexively defending all the actions of big business, which seldom responds in kind.
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