$100 billion mistake: is the windfall revenue estimate too high

Journal Article · Sat Apr 26 04:00:00 EST 1980 · Natl. J.; (United States)

OSTI ID:7153592

Samuelson, R J

An economic analysis of the Windfall Profits Tax (as proposed at the time) suggests that the estimate of a $227 billion revenue over the next decade may be as much as $100 billion too high. This judgment is based on provisions in the law allowing states to deduct severance taxes up to 15 percent on oil before federal taxes are paid and offering tax incentives for tertiary projects. The arithmetic, particularly in the case of enhanced oil recovery, illustrates how the incentives could shift more production from a 70% to a 30% tax rate than the Federal government had estimated. (DCK)

• OSTI ID: 7153592
• Journal Information: Natl. J.; (United States), Journal Name: Natl. J.; (United States) Vol. 12:17; ISSN NAJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300 -- Petroleum-- Drilling & Production
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
ECONOMIC IMPACT
ENHANCED RECOVERY
FINANCIAL INCENTIVES
INCOME
RECOVERY
TAXES
WINDFALL PROFITS TAX