Tax Oil Companies Pay

more+
less-

Just how much tax do oil companies pay? Exxon Mobil says they pay a lot. But the Center for American Progress (CAP) says they effectively pay less than half the 35% corporate companies in the US pay; and in fact in 2009, they did not pay any federal income tax at all according to their fillings with the Securities and Exchange Commission.

The difference lies in how you count. Exxon Mobil counts every kind of tax – not just income tax – namely local property taxes, state taxes, gasoline taxes and payroll taxes. But the CAP and other analysts count only the company’s federal corporate income tax. Yet the CAP contends that Exxon Mobil’s tax rate is less than the average American taxpayer’s. The company’s 2010 tax rate was 17.2%. Most Democrats in Congress and the Obama administration want to lessen or end the tax breaks or tax benefits of oil companies. These tax benefits have saved substantial amounts of money for the oil giants but have limited the amount of tax revenue the government receives. Some of these benefits include a tax break that has trimmed the corporate tax rate for manufacturers since 2004, oil-depletion allowances that all but the biggest firms use to recover drilling costs (sometimes they even make a profit out of those costs) and the expensing of “intangible” drilling costs at a rate higher than that used by most non-oil companies to recover investment costs.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

Written by:

more+
less-

The Law Offices of Darrin Mish, P.A. on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×