, May 17, 2011 8:12 am
You probably aren’t thinking about income taxes right now…the filing deadline for most of us was almost one month ago. And, what’s with the idea of deducting some of your income? Usually, it’s expenses that get deducted on one’s income tax form, especially if your self employed. Office supplies, mileage, professional memberships, etc. (BTW, did you take all the deductions you were entitled to? Now’s a great time to put a system in place so you don’t forget anything next April 15th.) Is there any particular industry that legally gets to deduct some of its income so that the rest of us may be having to pay more? Oh yes…
It’s the oil companies that get such a great tax break, and several others. Their CEOs were hauled before the U.S. Senate last week, answering questions (sort of) and pontificating about why their industry needs to prevent the repeal of a tax break that allows a tax deduction for a portion of their income from domestic production and manufacturing activities. According to the American PetroleumInstitute, such a repeal will cost the oil industry more than $18 billion over 10 years. Given the wild profitability of Exxon Mobile Corp., Chevron Corp., ConocoPhillips and the U.S. units of BP and Royal Dutch Shell PLC, other changes are being considered in the Senate to end the gravy train. The industry says they’d end up losing $85 billion in tax breaks, if Congress makes all the changes under consideration. My heart bleeds.
Congress won’t take everything away. But, with gas at $4 a gallon and huge budget deficits, it’s possible that even the Republicans in the House might feel pressure from constituents to take back some of the oil company giveaways. Let your senator and congressperson know what you think. Until next time, here’s to good planning!