Oil taxation

Journal Article · Fri Mar 15 04:00:00 EDT 1974 · Ed. Res. Rep. (Wash., D.C.); (United States)

OSTI ID:7355305

Congressional attempts to deal with the oil situation involve proposals to nationalize the oil industry, to create a competing national oil company, to split apart the major companies in antitrust action, to bring the companies under strict Federal controls, to roll back crude-oil prices, and to eliminate or modify the industry's various tax benefits. Eliminating the industry's tax benefits is almost a certainty, and Sen. Charles Percy observed that ''changes in the Federal Tax law applicable to the oil industry are clearly necessary so as to encourage investment in domestic exploration, production, and refining...and to assure the American public that its sacrifices have not been undertaken merely to add to already overflowing corporate coffers.'' The record-setting 1973 profits of the major oil companies increased 48 percent over 1972 levels, but oil industry spokesmen contend that 1973 was a recovery year from poor profit levels of previous years. It is stated that in 7 of the last 10 years, the oil industry charted rates of return 1.3 percent lower than for all manufacturing concerns. Legislation was aimed at restricting large oil profits, even though a major goal of the capitalistic system is making a high profit. Congressional and Presidential action on taxes is reviewed since the Arab oil embargo. The evolution of the oil petroleum tax system and the outlook for changes in oil taxation are reviewed. (MCW)

• OSTI ID: 7355305
• Journal Information: Ed. Res. Rep. (Wash., D.C.); (United States), Journal Name: Ed. Res. Rep. (Wash., D.C.); (United States) Vol. 1:2; ISSN EDRRA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
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