![]() ![]() tax liability by the amount of tax paid to other countries. multinational, Exxon gets tax credits that offset their U.S. The group, Citizens for Tax Justice, are complaining that ExxonMobil are only paying tax rates of 13% on its US profits, but this is to compensate for the huge tax bills it faces elsewhere around the world, such as in Angola where it pays 70% income tax. You are likely to hear more and more protests about the level of tax oil companies are paying from now until Election Day. Sure, it is unlikely that the public will throw their support behind big oil in fact a recent survey found that only 9% of respondents thought corporations paid too much in taxes, while 67% thought they paid too little. Last year Exxon also recorded more than $70 billion in sales taxes and other duties. Income tax does not even represent half of the total taxes paid. These figures are higher than the US federal statutory rate of 35%, which is the highest tax rate in the developed world. ExxonMobil’s tax rate was 42.9%, Chevron’s was 48.3%, and ConocoPhillips’ was 41.5%. These huge sums gave the companies equally huge effective tax rates. ExxonMobil paid $27.3 billion in income tax, Chevron paid $17 billion, and ConocoPhillips paid $10.6 billion. In 2011 the three oil giants mentioned above paid more income tax than any other American corporation. income tax bills to compensate for the billions in income taxes they pay to oil-rich nations around the world.Ģ. That oil companies are allowed to deduct from taxable income some of the costs incurred in exploring for oil and drilling the wells.ģ. That the oil companies’ receive a domestic manufacturing tax deduction of 6% of the value of oil and gas they produce in the United States.īut on closer inspection of the taxes actually paid by big oil, it may be that congress is correct the oil companies need these tax breaks (or more the case is that they deserve them). 1. That oil companies are able to get credit on their U.S. ![]()
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