Would oil companies be unfairly burdened by Obama's proposed foreign tax plans?

One of Obama’s arguments is that multinationals have paid an average tax rate of just 2% on their foreign revenues. While this may be true for companies that choose to have operations in countries with very low tax rates, the oil industry goes to resource-rich countries and operates under tax regimes that are often onerous. If you look at the 2007 worldwide net income of the top 25 oil companies in the United States, the income tax was about 40%.

This would undoubtedly reduce their ability to invest in new projects and bring more oil and gas to market, not to mention the fact that prospects for additional areas for drilling in the US do not look good.
My guess is that many of these companies would be targets for foreign takeovers.
Croaker: Exxon made quite a bit last year, but that was in the context of record 150/barrel oil and all of their projects were profitable. The price of oil fluctuates, and US oil companies have no control over it. I guarantee you that not all of their projects or planned projects are still profitable at 40 or 50 dollars a barrel. So they’re taking big risks. Also, you’re forgetting the scale of these companies and the oil industry. Yes, they make billions, but they also invest billions. There is no other industry that invests mind boggling amounts of money like the oil industry.
Brown: I don’t think the issue is whether or not they can afford it. The fact is that they will be at a big disadvantage compared to their foreign competitors. The question is would you rather have foreign companies drilling for oil or american companies? It will be drilled either way.

11 Responses to “Would oil companies be unfairly burdened by Obama's proposed foreign tax plans?”

  1. Proud to be an AMERICAN Says:

    Yes.

  2. Hillbilly D-Lux Says:

    He’s trying to put them under.

  3. sophia Says:

    Who cares don’t you think they’ve gotten enough from us. What goes around comes around.

  4. fdm215 Says:

    No. They would not be. Of course they will claim otherwise…wouldn’t you?

  5. Thomas R Says:

    Yeah, poor poor oil companies. I feel bad for them.

    I really do.

    Oh wait, they ripped us off for 40 years.

    Not so much sorry.

  6. azz_tarcomed Says:

    Gas prices have went up 19 cents since this plan was announced

    Thanks Obama

  7. Croaker Says:

    lol…what was Exxon’s profit last qtr?

  8. Dan C Says:

    You are correct.

    The multi national companies could sell off their US holdings to some suckers.

    It will also cause more unemployment and the stock market to crash.

    If investors, domestic and international, can’t make money they are going to invest it where they can make money.

  9. dukemack Says:

    No, the companies wont really be impacted unless they choose to stay in the US, instead of splitting the company, into 2 seperate entities having both owned by a holding company. One foreign based and the other in the US. That way US loses a lot of tax revenue. If this stupidity passes expect more US companies to move operations overseas.

  10. brown9500v3 Says:

    They can afford it.

  11. Daver Says:

    What are you, an oil company apologist?