Big Oil bracing for tax battle

May 9, 2011

As expected, the ginormous profits posted by major oil companies has caught the attention of tax-writing members of Congress.

Senate Democrats say they will present this week a plan to eliminate oil company tax breaks and use the estimated $21 billion in savings to offset the federal deficit.

Senate Finance Chairman Max Baucus (D-Mont.) has scheduled a hearing for Thursday, May 12, on Oil and Gas Tax Incentives and Rising Energy Prices.

Industry executives have been invited to testify, but which Big Oil representatives will come to Capitol Hill is not yet clear. However, you can be sure that  whoever is tapped to testify will come armed with data downplaying the oil industry's $35.6 billion in first quarter profits.

We should get a preview of the industry's side later this morning at a scheduled American Petroleum Institute, Americans for Tax Reform, U.S. Chamber of Commerce and Small Business & Entrepreneurship Council event at which the groups' representatives will "discuss proposals in Congress to raise taxes on energy and what it could mean for American businesses, our economy, jobs, and gas prices."

Differing ideas for oil taxes: The Senate proposal diverges from White House plans.

Obama also wants to whack Big Oil tax subsidies, but he prefers to use the money for clean energy projects.

Senators, however, believe that by tying the oil industry profits to the deficit, especially as U.S. drivers are facing $4 a gallon gasoline when they fill their tanks, Republicans will have a hard time arguing against the tax plan.

Related posts:

Want to tell your friends about this blog post? Check out the buttons — Tweet This, Reblog, Like, Digg This and more — at the bottom of this post. Or you can use the Share This icon to spread the word via e-mail and online avenues. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment