Yes, oil and natural gas companies make a lot of money, but they also pay a lot of taxes and create a lot of jobs. Contrary to rhetoric from the Left, ExxonMobil, America’s largest oil and natural gas producer, has a global effective income tax rate of 44 percent. Over the past five years, Exxon has paid $171 billion in global income taxes, an enormous sum.
Back at home, Exxon’s effective income tax rate over the past five years is 32 percent. Paying $21 billion in income taxes over the same period, it is hard to say that Exxon is not paying its “fair share.” But that’s not all; Exxon still pays the government royalty and lease payments, property taxes, excise and sales taxes on gasoline.
Paying nearly $100 million a day in income taxes, the oil and natural gas industry’s tax expenses average 48 percent, compared to 28 percent for other S&P Industrial companies.
Use whatever metric you want, oil and natural gas companies pay a lot in taxes—and they don’t ask for any help from the government. These employers don’t receive a penny from taxpayers to produce oil or natural gas. Raising taxes on these companies, as Democrats propose time and time again, would force producers to delay or scrap future projects as it becomes significantly harder for them to recover their investment costs.
So the next time you hear that ConocoPhillips or ExxonMobil made a few billion, sit back and smile, your retirement just got a little more secure.