From 2001 – 2010 … the 5 largest oil companies made almost $1 trillion in profits (source); the oil industry is the most profitable industry on the planet. And that’s not the entire industry – that’s just the five largest. That means … that’s $1 trillion out of your pocket to the oil companies that gets sent back to the wealthy in the form of dividends and bonuses for the C suite sealed in an envelope with a kiss and one great big smile. The fact that government allowed these oil companies to merge into these huge companies is one of the other major reasons that these oil companies have been able to financially molest American taxpayers.
And even though these companies are making record profits – Republicans BLOCKED eliminating $24 billion in subsidies from the American taxpayer to these 5 large oil companies (source). There was a majority in the Senate but Republicans filibustered the bill forcing 60 votes like they do pretty much everything. But don’t worry … all is not lost. Those Republican Senators and House Reps that keep shilling for the oil industry – they’re doing great. The oil industry is handsomely rewarding them for a job well done. As we’ve written HERE - Republican Senators Received 98% of Oil SuperPAC $ in April of 2012.
But that’s not enough … they want MORE. And remember – every $ that these companies avoid due to corporate loopholes written in by legislators is a $ in taxes that you’re paying or a $ in services that we’re cutting or a $ in debt we’re adding to the deficit. And no … lowering taxes on oil companies doesn’t make oil prices cheaper. Remember – they made $1 trillion in 10 years just from the 5 companies … it’s always MORE. Always. That’s their job – maximizing value for shareholders. And government’s job is to restrain anti-trade and predatory practices.
The Center for American Progress does the analysis HERE:
Gov. Romney’s economic plan proposes to cut the corporate income tax rate from 35 percent to 25 percent—nearly a one-third reduction. That could provide a combined tax cut of at least $2.3 billion annually to the five largest publicly owned oil companies, according to an analysis of their 2011 public financial statements. That includes $1.5 billion for the three domestic oil companies and $800 million for the two foreign-owned companies. Since it is of course impossible to predict their future profits, this estimate is based on their 2011 financial data, including their U.S. federal income tax expense.
In addition, existing oil tax breaks would be protected under Gov. Romney’s plan. Though he has spoken in general terms about broadening the tax base, he has failed to name even one corporate tax loophole he would eliminate. His campaign has specifically criticized President Barack Obama’s efforts to close oil tax loopholes. And his chief energy advisor, oil executive and Romney super PAC donor Harold Hamm, has urged Congress to maintain the oil industry’s special tax breaks.
If you haven’t read the Politics Of Oil – you should.
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