New Analysis: Big Oil Dodged $21 Billion in Federal Income Taxes Last Year
If every oil and gas company paid the full corporate income tax rate, the US would have an additional $21.2 billion in revenue.
WASHINGTON, D.C. – While MAGA House Republicans are willing to implode America’s economy to raise costs for working families and provide tax breaks for Big Oil, new earnings data illustrates just how little Big Oil is paying in taxes. According to a Climate Power analysis of financial data from 21 companies, not a single one of those oil and gas companies paid the statutory 21% corporate income tax rate.
Additional Findings From Financial Analysis
- For the second year in a row, Hess Corporation, Marathon Oil Corp, and Murphy Oil paid $0 in federal income taxes. Last year the three companies made a combined $4.9 billion in U.S. profits.
- APA Corporation, Cheniere Energy, EQT Corporation, and Ovintiv Inc. paid less than 1% in federal income taxes. Those companies made a combined $6.99 billion in U.S. profits.
- Even though APA Corporation, EQT Corporation, and Halliburton made more before taxes in 2022 than 2021, they paid nearly $40 million less in taxes year over year.
“Speaker McCarthy claims that we need to balance the budget, but instead of holding Big Oil accountable, he’s giving away billions of dollars back to them through tax breaks,” said Eden Alem, a Climate Power spokesperson. “We can’t be surprised that Big Oil continues to dodge taxes—congressional Republicans are encouraging this behavior. And to make matters worse, while Big Oil is skirting taxes, working Americans are paying their fair share and being ripped off at the pump.”
While Congressional Republicans are prioritizing tax breaks for Big Oil, President Biden’s proposed budget holds wealthy oil companies accountable by repealing oil and gas subsidies and tax breaks. According to the White House, if implemented, the U.S. would save $31 billion over the next 10 years.