Trump Tax Cut May Save Oil Drillers $10 Billion / Cost You $10B

Trump Tax Cut May Save Oil Drillers $10 Billion / Cost You $10B
By Christopher R Rice

The Trump administration’s plan to slash corporate tax rates will cost taxpayers more than $10 billion a year.

Republicans led by President Donald Trump have said they want to cut the top corporate rate to 15 or 20 percent, from 35 percent now.

West Texas Intermediate crude fell 0.2 percent on Monday to $48.47 after it hit a high of $55.24 on Jan. 3.

The number of rigs drilling U.S. fields for crude almost doubled to 617 since the end of May.

U.S. drillers lifted crude production more than 3 percent since the end of 2016 to 9.088 million barrels a day as of March 3, according to the Energy Department in Washington.

It’s not clear when a tax cut plan might be finalized by the U.S. Congress and signed into law by the president.

At CERAWeek by IHS Markit, the largest annual gathering of industry leaders, some top executives warned against overindulgence by U.S. drillers.

Harold Hamm, the billionaire shale oilman, said the U.S. industry could "kill" the oil market if it embarks into another spending binge.

U.S. production "could go pretty high," Hamm, the chairman and CEO of Continental Resources Inc., said at the meeting. "But it’s going to have to be done in a measured way, or else we kill the market and gas prices will fall."

Saudi Arabia’s oil minister, Khalid Al-Falih, told the conference that global oil stockpiles haven’t drained as quickly as expected, opening the door for an extension to OPEC production cuts that were originally due to expire at mid year.

Without such an extension, the price of oil could drop to $40 a barrel bringing a gallon of gas below $2., said Scott Sheffield, chairman of Irving-based Pioneer Natural Resources Co.

From The U.S. policy (includes tax policy, financial deregulation, trade policy, anti-labor policy, and much more.) for the past 30 years has been aggressively dedicated to shifting income share away from the poor and middle class and into the pockets of the already rich.

We've allowed our country to be taken from us, for the benefit of the few and the total decimation of the vast many.

As Citizens for Tax Justice and USPIRG reported, 280 large and profitable corporations contributed $216 million to Congressional campaigns over four election cycles and got nearly a quarter of a trillion dollars in tax breaks.

That’s a terrific investment for them – a return of more than a thousand to one – but it’s a bad deal for the American people.

The official, or “statutory,” corporate tax rate is 35 percent. But the
actual rate paid by American corporations is only 12 percent, less than that paid by many middle-class Americans.

In fact, US Corporations pay less tax as a percentage of the GDP than corporations in Canada. Or Japan, South Korea, Norway, Luxembourg, New Zealand, Israel, the Czech Republic, Sweden, Belgium, Switzerland, the United Kingdom, Denmark, Finland, and Italy.

OECD StatsExtract interactive database.)



Popular posts from this blog

10 Facts about the Syrian conflict you won't hear on the main stream media

Better than Backpage

Declassified Documents: Obama Ordered CIA To Train ISIS