If the only things that are confirmed in life are death and taxes, you may say that the companies pressure groups spend most of their time trying to avoid at least one of the two. A few industries understand this better than oil and gas, which has benefited for a century for some tax bases that provide them with billions of dollars in payments annually.
The countries of the world I agreed to gradual disposal Fossil fuel subsidies worldwide. The Biden Administration pledged to their ax locally. However, it continues.
Now, with determination from Republicans in Congress and Trump’s administration to the age of tax cuts $ 4.5 trillion and searching for a tragedy of revenues and spending to pay for their price, some environmental advocacy groups highlight the tax benefits that flow into one of the most profitable industries in the world, whose management is estimated at $ 110 billion in December in 2034.
Meanwhile, the oil and gas industry play in both attack and defense, in an attempt to maintain the benefits it enjoys while working at at least one new age, which would protect some oil companies from an enact tax as part of the law to reduce inflation for 2022.
One of the largest sources of new revenue from the Irish Republican Army was the minimum alternative tax of companies, which was aimed at preventing companies that reported large profits for investors from using gaps to pay a few or non -taxes.
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The minimum tax applies to all industries. For oil and gas, some large independent holes in particular have hit (unlike “integrated” specializations such as Exxonmobil and Chevron). The funds concerned are important: According to New analysis by United to finish pollutantsAn alliance of environmental and progressive groups has been reported, at least three companies – Eog Resources and APA Corp. And Ovintiv – by paying nearly 200 million dollars to the Treasury Department under the minimum tax since its age in 2022.
American Senator James Lancford has submitted a draft law that would change the calculation and integration account by allowing oil companies to deduct some of their largest expenses against the minimum tax.
The Lanford K. Priority in the policy plan From the American Exploration and Production Council, which represents large independent oil and gas companies.
Lukas Shankar-Ross, the author of the book “Lower tax analysis” and deputy director of the Justice and Energy Justice Program at Friends of the Earth, noted that the Lankford bill will deepen the deficit or force more discounts on programs such as Medicaid or any other assistance to low-income Americans.
“I think it’s a shameful thing for me to imagine as much as possible now,” said Chancar Ross.
The oil and gas sector is the best contributor to the industry to Lankford campaigns in recent years, giving more than $ 546,000 since 2019, According to OpenSecrets.
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“The enhancement of US energy independence is a reflection of the Biden administration policies. Strong local energy production makes us less dependent on opponents, and enabling oil and gas producers makes the United States stronger,” said a Lancord spokesman.
When it comes to the largest oil and gas companies, its focus may be elsewhere. When the American Petroleum Institute released a five -point policy map of Trump and Congress In NovemberThe most prominent need to preserve what was called “decisive international tax rulings.”
It is expected that the alleged dual taxpayers estimates, which is only one of these provisions, is expected to provide a double -capacity taxpayer base, 71.5 billion dollars in oil and gas companies over a decade, according to Biden administration estimates.
In general, the Federal Tax Law allows companies to pay the credit taxes they pay for foreign governments on income abroad in exchange for American tax bills, to avoid imposing taxes twice. Zorca Milin, director of policy in financial accountability and transparency, said that the dual taxpayer base allows oil companies widely to determine what is an exact tax boost, and as a result they can calculate royalties and other payments as taxes.
Indeed, in some cases, American oil and gas companies may be Pay more taxes and other payments To foreign governments more than to the United States.
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Exxon Paid billions In external royalties alone in 2023, including $ 1.8 billion for the United Arab Emirates, and one billion dollars for Canadian province Alberta and $ 761 million to Nigeria. Chevron He paid about 2 billion dollars In royalties for foreign governments.
Milin said it is unclear how much these kings payments may be Chevron and other oil companies have claimed virtues against their taxes in the United States, but they may coincide with billions of dollars annually.
“They are huge payments for governments around the world, including some somewhat shaded places, and what adds an insult to the injury is that many of these payments are used to compensate for the payments they pay here in the United States,” Milin said. “This is one of the ways that we have the tax law. These companies are to go abroad, dig, child, and excavation, but not local.”
Exxon, Chevron and the American Petroleum Institute did not respond to the suspension requests.
Many of the oil industry tax rules do not qualify as support. He said that many rules, such as those that allow oil companies to deduct their excavation costs in advance, instead of the life of the product of productivity, put the industry equally with other sectors. Moresiano said that oil companies often have high costs in advance that generate returns over many years, which can be placed in a tax position with other industries.
When it comes to royalties, these payments for mineral owners are generally discount. But the dual taxpayer base provides a much better deal by converting it into credit, an important discrimination. Say that the company received 100 million dollars of profits, paid $ 5 million of royalties and paid the income of full companies by 21 percent. Taking ownership payments as a credit instead of a discount will be provided by approximately $ 4 million. (Remember that American tax laws are complicated, so restrictions may apply.)
Melin argued that Congress should look at foreign tax exemptions, especially as they are looking for more revenues, because these benefits actually support oil companies engraving abroad.
“When we have more explicit international economic policy, America over trade, regarding other issues, I think they are likely to consider the ways that the tax law does not correspond to the same,” Milin said.