In the final hours of the the 2012 tax filing deadline, many Americans are worried about paying what seems like increasingly higher taxes. Who wouldn’t be worried?
Big Oil, that’s who.
As the Center for Progress notes, the big five oil companies weigh in with a hefty $137 billion in profits in 2011. Fortune magazine ranks ExxonMobil, Chevron, and ConocoPhillips as the first-, third-, and 16th-most profitable companies in the United States.
Yet Big Oil gets $4 billion a year in tax subsidies, lowering their tax burden.
By keeping profits overseas, Big Oil can further cut their tax rates to less than that of the average American family. Reuters reported on March 26, 2012, that
Exxon Mobil paid 13 percent of its U.S. income in taxes after deductions and benefits in 2011, according to a Reuters calculation of securities filings. Chevron paid about 19 percent.
The average American family paid an effective tax rate of 20 percent in 2007, the last year for which data is available.