Friday, July 08, 2011

The Reality of New "Big Oil" Taxes

I didn't know this.

The proposed $45-billion tax on America's oil companies would be in addition to ... $35.7 billion in taxes annually. That's 41.1% of net income, far more than the average of 26% for S&P500 companies outside the energy sector (2009 figures).

Obozo's proposal is to remove 'expenses incurred' as a deduction, but only for oil companies.

What I did NOT know is that his ploy will more than double income taxes for oil companies.

That means $6.00/gal gasoline--or more.

HT: Thinker

3 comments:

Anonymous said...

It appears they are including royalties in taxes. Rather dishonest.

Beer, Bicycles and the VRWC said...

This is not a "bug", but rather a "feature". Remember that "fossil fuels" (cheap, abundant energy) is the devil incarnate. The same cheap, abundant energy helps us be free and independent. If we do not have it, we will be easier to control.

Billiam said...

They've been trying to destroy big oil for decades. If the can't do it with taxes, they do it with regulatory fines and procedures. Hell, they tried to kill the Alaska pipe line in the 70's, and they're doing it today by refusing permits or giving them a million hoops to jump through. Sadly, this one can't be laid at only the Democrats feet. Repub administrations have been at them as well. The last thing the p.i.g.'s want is energy independence.