Tax ban, oil glut challenge OPEC supremacy

Journal Article · Mon Jul 24 04:00:00 EDT 1978 · Energy User News; (United States)

OSTI ID:6890828

Schulman, F

Special secret tax credits granted to oil companies operating in Saudi Arabia and Libya in 1955 have been revoked after Congressional investigations examined the credit system and the discrepancies between the treatment of gas imports from Mexico and those from Algeria. The Internal Revenue Service (IRS) is accused of failing to collect billions of dollars by not enforcing the tax code fairly and allowing U.S. petroleum companies to count the royalties paid to the Organization of Petroleum Exporting Countries (OPEC) as income tax. The tax credits have continued in spite of growing evidence that they are counter to national policy goals of reducing oil-import levels. They also encourage shipment of domestic oil supplies to Japan. Multinational corporations, some U.S. officials, and members of the Trilateral Commission favor the preferential treatment, while the only opposition comes from labor and the disadvantaged. The author advocates challenging OPEC's power with competing oil sources, denial of tax credits, and by capitalizing on OPEC's dependence on U.S. food and other resources. House investigations have removed State and Treasury Department pressures on the IRS.

• Research Organization: Fred Schulman Associates, Silver Spring, MD
• OSTI ID: 6890828
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 3:30; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
CARTELS
CONSUMER PROTECTION
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY SOURCES
ENERGY SUPPLIES
FOOD
FOSSIL FUELS
FUELS
IMPORTS
INTERNATIONAL ORGANIZATIONS
MULTINATIONAL OWNERSHIP
OPEC
PETROLEUM
SOCIO-ECONOMIC FACTORS
TARIFFS
TAXES
TRADE