Senator Robert Menendez (D-NJ) “today announced legislation that will close a number of corporate tax loopholes that allow oil companies to avoid paying billions of dollars in taxes,” according to a press release.
The Close Big Oil Tax Loopholes Act, co-sponsored by Senators Bill Nelson (D-FL) and Jeff Merkley (D-OR), targets a series of tax breaks related to drilling activities and revenues, as well as foreign tax schemes. Menendez estimates that closing these loopholes will amount to more than $20 billion over ten years for the taxpayers.
The bill would:
- Recoup royalties that oil companies avoided paying for oil and gas production on public lands
- Prevent oil companies from manipulating the rules on foreign taxes to avoid paying full corporate taxes in the U.S.
- End a number of tax deductions and relief afforded to the oil industry, such as the deductions for classifying oil production as manufacturing, for the depletion of oil and gas through drilling and for costs associated with preparing to drill
More specifics here.
(credit image – daylife/getty)
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