A new report from Citizens for Tax Justice describes the biggest tax subsidies enjoyed by oil and gas companies and explains that these subsidies do nothing to encourage energy independence or cleaner energy.
In the wake of the disastrous oil spill in the Gulf of Mexico, the public and the media have turned their attention to some of the subsidies provided through the tax code to BP, the corporation that leased the ill-fated Deepwater Horizon drilling platform. The truth is that oil and gas companies have for years received a bonanza of unjustified tax breaks that serve only to boost profits for their shareholders.
The oil and gas industry is also resisting any taxes that would allow it to pay for its own messes. One proposal under consideration by Congress is an increase in the tax used to fund the Oil Spill Liability Trust Fund, which is currently 8 cents per barrel. Another is reinstating the Superfund Tax which expired in 1995. Both proposals have been met with furious opposition by the petroleum industry, which has spent a reported $340 million on lobbyists in the last 2-1/2 years.