Category Archives: Tax credits

INSIDE THE TAX BILL’S $25 BILLION OIL COMPANY BONANZA

Repost from Pacific Standard
[Editor: Valero Energy’s windfall of DIRECT ONE-TIME 2017 TAX SAVINGS from the Trump tax law was $1.9 BILLION, according to Valero’s 4th quarter 2017 SEC filing .  See chart below. See also Valero’s Feb 2018 press release and Valero’s detailed SEC 2017 Year End Fiscal Report.  – RS]

A Pacific Standard analysis shows the oil and gas industry is among the tax bill’s greatest financial beneficiaries.

By Antonia Juhasz, Mar 27, 2018
President Donald Trump pitches his Tax Cuts and Jobs Act at the Andeavor oil refinery in North Dakota in September of 2017.
President Donald Trump pitches his Tax Cuts and Jobs Act at the Andeavor oil refinery in North Dakota on September 6th, 2017. (Photo: WhiteHouse.gov)

Last month, during a retreat in West Virginia, congressional Republicans set out their 2018 party goals. Their primary objective is to hold onto their majorities in the House of Representatives and the Senate, and the key mechanism for doing so is to ride the coattails of the Tax Cuts and Jobs Act. “The tax bill is part of a bigger theme that we’re going to call The Great American comeback,” said Representative Steve Stivers (R-Ohio), chairman of the National Republican Congressional Committee. “If we stay focused on selling the tax reform package, I think we’re going to hold the House and things are going to be OK for us.”

More than 50 percent of the tax bill’s benefits will go to the wealthiest 5 percent of Americans, and more than 25 percent to the wealthiest 1 percent, according to the Institute on Taxation and Economic Policy. As Businessweek put it, “President Donald Trump and Republicans sold their $1.5 trillion tax cut as a boon for workers, but it’s becoming clear just two months after the bill passed that the truly big winners will be corporations and their shareholders.”

Pacific Standard‘s original analysis finds that it is the oil and gas industry, including companies that backed the presidency of Trump and whose former executives and current boosters now populate it, that are among the tax bill’s largest and most long-lasting financial beneficiaries.

Just 17 American oil and gas companies reported a combined total of $25 billion in direct one-time benefits from the 2017 Tax Cuts and Jobs Act. Many of the companies will also receive millions of dollars in income tax refunds this year. Looking forward, the Tax Act then reduces all corporate annual tax bills by a minimum of 40 percent every year in perpetuity, while adding new benefits that function as government subsidies for the oil and gas industry. The companies’ activities in the United States are made less expensive, thereby encouraging a further expansion of oil and gas operations.

Pacific Standard reviewed the Annual 10K and Fourth Quarter Reports filed with the U.S. Securities and Exchange Commission for 2017 by 17 U.S. oil companies, looking at the largest companies in production, refining, and pipelines that also clearly specified the impacts of the Tax Act in their results. Private companies, such as Koch Industries, which undoubtedly benefit from the legislation, could not be included because they are not required to make these financial reports publicly available.

$25 BILLION IN OIL COMPANY TAX SAVINGS

Screen Shot 2018-03-25 at 6.19.30 PM
(Chart: Antonia Juhasz/Pacific Standard)  …CLICK TO ENLARGE

Continue reading INSIDE THE TAX BILL’S $25 BILLION OIL COMPANY BONANZA

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Federal spending deal falls short on environment

Repost from the San Francisco Chronicle

Spending deal falls short on environment

By Annie Notthoff, December 17, 2015  |  Annie Notthoff is director of the Natural Resources Defense Council’s California advocacy program.
Senate Majority Leader Mitch McConnell Photo: J. Scott Applewhite, Associated Press
Senate Majority Leader Mitch McConnell Photo: J. Scott Applewhite, Associated Press

The spending and tax policy agreement Congress and the White House have reached to keep the government funded and running includes important wins for health and the environment.

But there’s good news to report, only because of the Herculean efforts of House Minority Leader Nancy Pelosi, D-San Francisco, Senate Minority Leader Harry Reid, D-Nev., and the White House, who worked tirelessly to block nearly all of the dozens and dozens of proposals Republican leaders were pushing.

Those proposals would have blocked action on climate, clean air, clean water, land preservation and wildlife protection and stripped key programs of needed resources. The Republican leaders’ proposals were the clearest expression yet of their “just say no” approach to environmental policy. They literally have no plan, except to block every movement forward on problems that threaten our health and our planet.

The worst aspect of the budget agreement is another clear indication of Republican leaders’ misplaced priorities — they exacted an end to the decades-long ban on sending U.S. crude oil overseas in this bill, in return for giving up on key elements of their antienvironment agenda.

Senate Majority Leader Mitch McConnell, R-Ky., made that give-away to the oil industry one of his top priorities. It will mean increased oil drilling in the U.S., with all the attendant dangers, with the benefits going to oil companies and overseas purchasers. That won’t help the American public, or the climate. It’s simply an undeserved gift to Big Oil.

In good news, the agreement extends tax credits for wind and solar energy for five years, which will give those industries long-sought certainty about their financing.

Wind and solar will continue to grow by leaps and bounds, helping domestic industry, reducing carbon pollution and making the U.S. less vulnerable to the ups and downs of fossil fuel prices.

Democratic leaders deserve all our thanks for what they were able to keep out of the budget deal. Gone are the vast majority of obstacles Republican leaders tried to throw in the way of environmental protection. Recall for a moment the 100 or more antienvironmental provisions Republican leaders tried to attach to these spending bills. Those included efforts to:

• Block the Environmental Protection Agency’s Clean Power Plan, which sets the first-ever limits on carbon pollution from power plants — our best available tool to combat dangerous climate change.

• Roll back the Obama Administration’s Clean Water Rule, which would restore protections for the potential drinking water supplies of 1 in 3 Americans.

• Repeal the EPA’s newly issued health standards to protect us from smog.

• Bar the Interior Department from protecting our streams from the pollution generated by mountaintop removal during coal mining.

• Strip Endangered Species Act protections for gray wolves, the greater sage grouse, elephants, the Sonoran Desert tortoise, and other threatened animals.

• Force approval of the proposed Keystone XL tar sands oil pipeline, which President Obama already has rejected.

There’s more work ahead to protect the environment, starting with eliminating the threat of oil drilling in the Arctic and off the Atlantic Coast.

But despite the efforts of Republican congressional leaders to hold the public hostage and bring us to the brink of another government shutdown, a budget deal has emerged that protects environmental progress.

 

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Jeb Bush Calls For End to Energy Industry Subsidies – Including Oil and Gas Industry

Repost from National Journal

Jeb Bush Calls For End to Fossil-Fuel Subsidies

The 2016 contender says tax credits for the oil and gas sector should be eliminated.
By Clare Foran, July 23, 2015
Jeb Bush.(Andy Jacobsohn/Getty Images)

Jeb Bush wants to get rid of tax credits for the oil and gas industry.

“I think we should phase out, through tax reform, the tax credits for wind, for solar, for the oil and gas sector, for all that stuff,” the 2016 Republican candidate said in New Hampshire on Wednesday, according to a video recorded by grassroots environmental group 350 Action.

“I don’t think we should pick winners and losers,” Bush added, saying: “I think tax reform ought to be to lower the rate as far as you can and eliminate as many of these subsidies, all of the things that impede the ability for a dynamic way to get to where we need to get, which is low-cost energy that is respectful of the environment.”

Bush’s comments arrived in response to questions from a 350 Action activist after the 2016 Republican contender appeared at an event hosted by the conservative advocacy group Americans for Prosperity in Manchester, New Hampshire.

When pressed by the activist on whether he would get rid of all fossil-fuel subsidies, Bush replied: “All of them. Wind, solar, all renewables, and oil and gas.”

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