Obama’s Big Lie About Big Oil

Monday, March 19th, 2012 and is filed under Blog, Taxes

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As long as gas prices are astronomically high, which will be for the foreseeable future, Obama will prance around the country lodging his cantankerous rhetoric against oil companies.  He will continue to assert that oil companies are getting subsidies and green energy companies are getting “tax cuts.”  Here are the relevant numbers from the WSJ that you need to bookmark.  Save the information and use it the next time your liberal friends charge that oil companies are on the dole.

Here is the tax information for oil companies:

The federal Energy Information Administration reports that the industry paid some $35.7 billion in corporate income taxes in 2009, the latest year for which data are available. That alone is about 10% of non-defense discretionary spending—and it would cover a lot of Solyndras. That figure also doesn’t count excise taxes, state taxes and rents, royalties, fees and bonus payments. All told, the government rakes in $86 million from oil and gas every day—far more than from any other business. […]

Exxon Mobil, the world’s largest oil and gas company, says that in the five years prior to 2010 it paid about $59 billion in total U.S. taxes, while it earned . . . $40.5 billion domestically. Another way of putting it is that for every dollar of net U.S. profits between 2006 and 2010, the company incurred $1.45 in taxes. Exxon’s 2010 tax bill was three times larger than its domestic profits. The company can stay in business because it operates globally and earned a total net income after tax of $30.5 billion in 2010 on revenues of $370.1 billion.

Now let’s contrast that with green energy companies:

For comparison, nuclear power comes in at minus-99.5%, wind at minus-163.8% and solar thermal at minus-244.7%—and that’s before the 2009 Obama-Pelosi stimulus. In other words, the taxpayer loses more the more each of these power sources produces.

Also, we must remember that on top of the fact that oil companies incur a positive tax liability and green energy companies enjoy a negative tax liability, the nature of the “subsidies” are very different.

As for the “subsidies” that Mr. Obama says the oil industry receives, these aren’t direct cash handouts like those that go to the green lobby. They’re deductions from taxes that cover the cost of doing business and earning income to tax in the first place. Most of them are available to other manufacturers.

It is truly a travesty that the media lets Obama get a way with this dastardly lie.