Study of the effect on selected oil and gas companies of ''The President's tax proposal to the Congress for fairness, growth and simplicity''

Technical Report · Wed Jul 31 00:00:00 EDT 1985

OSTI ID:5194228

The overall objective of the Touche Ross study was to determine, on a hypothetical basis under a given set of assumptions, the effect on corporate federal income tax liability of selected changes included in the President's proposal. In addition to two ''Test'' companies whose data were used to develop most of the methodologies, assumptions and general approach, nine oil and gas companies participated in the study, with the understanding that their data remain confidential and that their individual company could not be identified in the study results. For the study companies three conclusions can be drawn: (1) Over the study period, the cumulative effect of the President's proposal, on companies with significant taxable income, is generally to reduce taxes approximately 25%. This is due primarily to the corporate tax rate reduction. (2) The proposed alternative minimum tax results in higher taxes and will affect more of the companies than the minimum tax included in current law. (3) Most of the companies that pay no tax under current law will pay no tax under the President's proposal.

• Research Organization: Touche Ross and Co., Washington, DC (USA)
• OSTI ID: 5194228
• Report Number(s): DOE/NBM-6001545; ON: DE86001545
• Country of Publication: United States
• Language: English

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