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The US government only takes a 12.5% royalty on profits from oil and gas extraction on public land [1]. Norway has a petroleum tax of 27% and a special tax of 5
by jmyeet 4y ago
The US government only takes a 12.5% royalty on profits from oil and gas extraction on public land [1]. Norway has a petroleum tax of 27% and a special tax of 51% for a total of 78% [2] in comparison.
While we would generate less tax revenue per capita than Norway would, that's not the point. The point is the state should take a much larger share of the profits of extracting natural resources that state owns.
[1]: https://www.americanprogress.org/article/federal-oil-and-gas-royalty-and-revenue-reform/ https://www.americanprogress.org/article/federal-oil-and-gas...
[2]: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/gx-er-oil-and-gas-taxguide-norway.pdf https://www2.deloitte.com/content/dam/Deloitte/global/Docume...
- bnjms 4y ago> The US government only takes a 12.5% royalty on profits from oil and gas extraction on public land [1]. This is horrific. Also the best argument I’ve seen.
- infra_ 4y agoThe royalty rate is on production, not profits. The government takes 12.5% of all produced oil and has the right to the revenues. This is a much more burdensome tax than a tax on profits in that the government gets paid before the oil company, even if the oil company loses money on their investments. That’s why it’s not taxed at standard corporate tax rates.
- account42 4y agoDoes the average oil company lose money on their investments?
- infra_ 4y agoYes, quite often. https://www.haynesboone.com/-/media/project/haynesboone/haynesboone/pdfs/energy_bankruptcy_reports/oil_patch_bankruptcy_monitor.pdf?rev=e57d3129b7504ea190df5d33dbacae44&hash=F461E4FE13446BE821B8AE9080C349E6 https://www.haynesboone.com/-/media/project/haynesboone/hayn... https://www.forbes.com/sites/christopherhelman/2021/02/02/exxonmobil-caps-year-from-hell-with-22-billion-loss-as-activists-demand-big-change/ https://www.forbes.com/sites/christopherhelman/2021/02/02/ex...