US senators eye eliminating tax deductions for oil companies

Democratic senators are demanding that US oil companies pay more tax at a time when they’re raking in record profits, Report informs referring to Bloomberg.

Seven senators led by Bob Menendez of New Jersey are proposing to remove key tax provisions enjoyed by oil producers such as drilling cost deductions, deepwater royalty relief and carbon capture credits for enhanced oil recovery, according to legislation introduced on December 8.

The “Close Big Oil Tax Loopholes Act” would also tighten up rules around deducting foreign taxes and the “depletion allowance” for oil and gas wells.

The bills signal that some Democrats, emboldened by their success at the midterm elections, are unlikely to ease off on their attacks on oil producers just because elections are over.

“The American people shouldn’t have to subsidize Big Oil CEOs and shareholders while families are hit with high prices at the pump,” Menendez said. The tax loopole bill puts “American taxpayers ahead of the corporate oil industry who for far too long have been enjoying economic windfalls on the backs of hardworking Americans.”