A Letter to Congress...Close the Oil Company Tax Loophole or Else!

Discussion in 'Congress' started by rdean, Feb 16, 2011.

  1. rdean
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    rdean rddean

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    To the Congress of the United States,

    Within the next 24 hours a bill will be presented for a vote that if passed will close the tax loophole the giant multi-national oil companies now enjoy at American taxpayer expense. The current loophole allows these companies to drill for oil owned by the citizens of the United States without paying a dime for the priviledge of doing so. As a matter of fact Exxon-Mobile which made record profits last year and not only paid no taxes but received a $156 million dollar refund.

    Newsvine - A Letter to Congress...Close the Oil Company Tax Loophole or Else!

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    Oil companies drilling for free? Paying no taxes? Getting free taxpayer money back? Can this be happening?

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    Big Oil giant Exxon Mobil, which last year reported a record $45.2 billion profit, paid the most taxes of any corporation, but none of it went to the IRS:

    ExxonMobil paid no federal income tax in 2009. (Updated)

    UPDATE Forbes has updated its article to include a statement from Exxon: "Though Exxon's financial statement's don't show any net income tax liability owed to Uncle Sam, a company spokesman insists that once its final tax bill is figured, Exxon will owe a 'substantial 2009 tax liability.' How substantial? 'That's not something we're required to disclose, nor do we.'"

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    At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.

    http://www.nytimes.com/2010/07/04/business/04bptax.html



    DRILL BABY DRILL!!!
     
    Last edited: Feb 16, 2011
  2. Mr. H.
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    Mr. H. Diamond Member

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    Since that linked article reveals nothing of detail about this alledged "loophole", could you trouble yourself to dig up some more info?
     
  3. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    "Or ELSE!...rdean will sent you a strongly worded letter! :lol:
     
  4. Mr. H.
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    Mr. H. Diamond Member

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    [​IMG]
     
  5. Quantum Windbag
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    Quantum Windbag Gold Member

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    Interesting.

    The saddest part of your post is that you actually believe that Exxon, and GE, paid no taxes in 2009.

    Something else you might find interesting, and not believe, is that in 2008 Exxon paid 2.5 times its profits in taxes. My assumption (note the word assumption here) is that their tax liability in 2009 was similar to what it was in 2008, which means they probably paid over $150 billion in taxes on that $45 billion in profits.

    Another thing, can you possibly explain what you have against Exxon making money in the first place? Over half of that evil corporation is owned by mutual funds, index funds, and pensions? That means that every time Exxon makes a profit millions of working people benefit from it, and it even helps unions.

    My guess is you will only be happy if Exxon is loosing money, and the government has to bail it out. except you would cry about that too, because then you would be bailing out the Ewings.
     
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  6. Baruch Menachem
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    Baruch Menachem '

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    I am guessing what he is going on about is the depletion allowance, which shows how clueless he is about basic accounting.

    Anytime a resource company spends money getting to the resource, they are allowed to write off a portion of the expense on their taxes every year, based on how long the resources extraction is expected to go on at that location.
    If an oil company installs a well and pump and pipline which costs $5million to drill and set up, and the well is assumed to have a 10 year life, they get to amortize the cost at a rate of 500,000 per year.

    This is not a loophole. This is how government has done business income taxes since the beginning. Installed assets are a business expense, and all businesses are allowed to amortize, deplete, depreciate their assets.

    One thing to note here is that a dry well is not an asset. The cost of a dry well is expensed as a loss the same year the loss is recognized.
     
  7. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Brilliant! :clap2:
     
  8. rdean
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    rdean rddean

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    If you dig a little deeper, you will find that Exxon did indeed pay taxes, just not to this country.

    Everyone has an explanation, but I'm the only one with links. Figures.
     
    Last edited: Feb 17, 2011
  9. Quantum Windbag
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    Quantum Windbag Gold Member

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    Really?

    Trust me on this, if your claim was true the Democrats in Congress would be jumping all over it. Fortunately for them they have staff to prevent them from looking like the complete idiot you do.

    Exxon Posts Record $32.36 Billion Tax Payment
     
  10. Harry Dresden
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    Harry Dresden Latinum, Plantinum,Silver,Gold Member Supporting Member

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    what happened to Dean?......
     

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