3 U.S. Oil Companies Paid Highest Corporate Income Taxes: $289.7B in 2007-12
(CNSNews.com) – Three U.S. oil companies paid a total of $289.7 billion in corporate income taxes between 2007 and 2012, the biggest portion of corporate taxes in absolute terms, according to analysis by Standard & Poor’s Capital IQ.
The data show, as reported in the New York Times on May 25, 2013, that when it came to corporate income taxes -- federal, state, local, and foreign – between 2007 to 2012 the three major oil companies paid the following: ExxonMobil, $146 billion; Chevron, $85.5 billion; and ConocoPhillips, $58.2 billion.
That totals $289.7 billion.
In addition, a 2013 report (p. 7) by the oil and natural gas trade group American Petroleum Institute (API), using S&P Research Insight and S&P 1500 by GICS Industry Code data, shows that the oil and gas industry had the highest effective tax rate during that time period (averaged over 2007-2012) of any U.S. business: 44.6%.
That compares, according to S&P Capital IQ, to Apple -- the largest market capital company at $400 billion – which had an effective tax rate of 14% over the same timeframe. Oil and gas firms are paying more than three times the tax rate of Apple.
The API report also shows the effective tax rate of other industries: Industrial conglomerates (15.8%); insurance (17.8%); pharmaceuticals (21.3%) and computer and peripherals (25.6%), among others. (Page 7)
API data show that between income taxes, rents, royalties and other fees, the oil and natural gas industry pays millions of dollars to the U.S. Treasury every day.
“The federal government collects an average of $85 million per day from America’s oil and natural gas industry,” Brian Straessle, spokesperson for API, told CNSNews.com. “We pay our fair share and then some while providing energy to families and businesses and supporting millions of jobs throughout the economy.”
The oil and gas industry supports 9.8 million U.S. jobs and represents 8% of the Gross Domestic Product, according to API.
In 2011, the industry pumped $545 billion into the U.S. economy through capital investment, wages and dividends, according to API.