The Truth About Oil Company’s Tax Breaks
From the way the Great pretender in Chief talks, you would think the oil companies sit around and get rich on subsidies set aside just for them. This falsehood should go the way of “you can keep your doctor” and “If you make less than 250k, your taxes won’t rise” (23 new taxes on the poor and middle class and counting)
What the oil companies get are two tax breaks, available not only to them but to every US company. In 2004, a tax break was set forth for companies who continue to manufacture things in the US. Microsoft gets it. Apple gets it. US Steel gets it. Government Motors gets it. In fact all of these companies get a 9% tax break, oil companies get only 6%. So when Obama takes away their tax deduction will he also take away every other companies’ credit. My guess it will depend on how much they give to the Obama reelection Fund.
The second “subsidy” is merely a credit for taxes paid to other countries. In other words if they make a billion in France and pay a 15% tax, they only pay 21% to the US, for a total of 36%. Again, this applies to all companies, not just the oil companies.
Obama has to demonize the producers in an effort to divert people’s attention from his disastrous policies and inept government. The average US company pays 26.5% in corporate taxes. Oil companies pay 41.4%. Compare that to Apple’s worldwide tax of 15%.
Now here is where it gets really interesting. Under Obama’s plan to cut corporate taxes, the oil companies would see their tax rate drop from 41.4 to 28%. Gee, why doesn’t the mainstream media point this out?
And if Obama does drop the “subsidies” from oil companies, wouldn’t they have to do the same for every other US manufacturer? After all, it’s illegal to set a different tax policy for seperate industries. Could this be just another Obama dirty little secret?
He also says we need to subsidize more green energy. Let’s assume the 4 billion oil companies receive in tax breaks are really a subsidy. That means our government subsidizes oil at a cost of 64 cents per megawatt hour. At our current rate of subsidy for green energy, we subsidize them 56.00 dollars per megawatt hour.
1. ExxonMobil • Income tax expense: $31.05 billion • Earnings before taxes: $78.73 billion • Revenue: $428.38 billion •1-year share price change: 6.56% • Industry: Oil and gas
2. Chevron • Income tax expense: $20.00 billion • Earnings before taxes: $46.33 billion • Revenue: $222.58 billion • 1-year share price change: 9.52% • Industry: Oil and gas
6. ConocoPhillips • Income tax expense: $7.94 billion • Earnings before taxes: $15.42 billion • Revenue: $60.35 billion • 1-year share price change: -22.86% • Industry: Energy exploration and production
No comments:
Post a Comment