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S.940 - Close Big Oil Tax Loopholes Act
A bill to reduce the Federal budget deficit by closing big oil tax loopholes, and for other purposes.
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Mr. MENENDEZ (for himself, Mrs. MCCASKILL, Mr. TESTER, Mr. BROWN of Ohio, Mr. REID, Mr. DURBIN, Mr. SCHUMER, Mrs. MURRAY, Mr. LEAHY, Mr. REED, Mr. NELSON of Florida, Mr. LAUTENBERG, Mr. WHITEHOUSE, Mrs. BOXER, Ms. MIKULSKI, Mrs. GILLIBRAND, Mr. COONS, Mr. ROCKEFELLER, Mr. BLUMENTHAL, Mr. FRANKEN, Mr. CARDIN, Ms. STABENOW, Mr. MERKLEY, Mr. JOHNSON of South Dakota, Mr. SANDERS, Mrs. SHAHEEN, Mrs. FEINSTEIN, and Ms. KLOBUCHAR) introduced the following bill; which was read the first timeCommentsClose CommentsPermalink
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
TITLE I--CLOSE BIG OIL TAX LOOPHOLES
TITLE II--OUTER CONTINENTAL SHELF OIL AND NATURAL GAS
SEC. 2. FINDINGS.
(1) gas prices have risen significantly largely in response to unrest in north Africa and the Middle East, unrest that speculators are capitalizing on to increase oil futures prices and make huge profits;CommentsClose CommentsPermalink
(2) high gas prices are hurting the quality of life of people of the United States, cutting into savings, and jeopardizing jobs and the economic recovery of the United States;CommentsClose CommentsPermalink
(3) implementation of the regulatory reforms enacted by Congress in the Dodd-Frank Wall Street Reform and Consumer Protection Act (
(4) the United States is producing more oil than any time in the last 13 years and companies hold abundant inventories of oil, but the United States is still importing more than 11,000,000 barrels of oil per day and the Energy Information Administration projects that full production in all onshore and offshore areas would reduce gas prices by only 3 cents per gallon by 2030;CommentsClose CommentsPermalink
(6) oil companies are sitting idly on approximately 60,000,000 acres of leased Federal lands and waters containing more than 11,000,000,000 barrels of oil and 59,000,000,000,000 cubic feet of natural gas;CommentsClose CommentsPermalink
(7) the United States possesses less than 2 percent of the proven oil reserves of the world, yet consumes an unsustainable 25 percent of the oil production of the world;CommentsClose CommentsPermalink
(8) the economy of the United States suffers huge net losses in jobs and productivity from the growing annual trade deficit in energy, due mainly to the outflow of $250,000,000,000 or more to pay for foreign oil;CommentsClose CommentsPermalink
(9) world oil prices have risen steadily since the slow beginning of the global economic recovery and, absent major efficiency or conservation improvements or deployment of alternative fuels, those oil prices are projected to remain well above $100 per barrel or higher as world demand grows as China, India and other countries industrialize;CommentsClose CommentsPermalink
(10) the oil production policies of cartel of the Organization of the Petroleum Exporting Countries (OPEC) are a large determinant of the world price of oil, so the economy of the United States will be affected by decisions of OPEC as long as the United States depends on oil for a significant portion of the energy consumption of the United States;CommentsClose CommentsPermalink
(11) the major oil companies have accumulated more than $1,000,000,000,000 in net profits over the last 10 years and collected more than $40,000,000,000 in tax breaks during the same period, but have invested negligible amounts of those funds into research and development of the production of clean and renewable fuels made in the United States, leaving consumers with few if any choices at the pump; andCommentsClose CommentsPermalink
(12) in the Energy Independence and Security Act of 2007 (
SEC. 3. SENSE OF SENATE ON HIGH GAS PRICES.
(1) the President and Administration should be commended for recognizing the severity of high gas prices and for taking appropriate actions to help reduce gas prices, including actions--CommentsClose CommentsPermalink
(E) to harmonize corporate average fuel standards under
(F) to establish the National Clean Fleets Partnership and Green Fleet Initiative to reduce diesel and gasoline use in fleets by incorporating electric vehicles, alternative fuels like natural gas, and efficiency measures; andCommentsClose CommentsPermalink
(B) to eliminate subsidies for major oil and gas companies and use the savings to promote research, development, and deployment of affordable alternative fuels and vehicles;CommentsClose CommentsPermalink
(D) to direct and fund the Commodity Futures Trading Commission and the Federal Trade Commission to rapidly implement the energy consumer protection requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (
(3) the Organization of the Petroleum Exporting Countries (OPEC) should contribute to the stabilization of world oil markets and prices and reduce the burden of high gasoline prices borne by the consumers in the United States by using existing idle oil production capacity to compensate for any supply shortages experienced in member countries; andCommentsClose CommentsPermalink
(4) the economic, environmental, and national security of the United States depend on a sustained effort to drastically reduce and eventually eliminate the dependency of the United States on oil.CommentsClose CommentsPermalink
SEC. 101. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY TAXPAYERS.
(a) In General- Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:CommentsClose CommentsPermalink
‘(1) GENERAL RULE- Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax--CommentsClose CommentsPermalink
‘(2) DUAL CAPACITY TAXPAYER- For purposes of this subsection, the term ‘dual capacity taxpayer’ means, with respect to any foreign country or possession of the United States, a person who--CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘generally applicable income tax’ means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.CommentsClose CommentsPermalink
SEC. 102. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.
‘(E) SPECIAL RULE FOR CERTAIN OIL AND GAS INCOME- In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term ‘domestic production gross receipts’ shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof.’.CommentsClose CommentsPermalink
SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS.
(a) In General- Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: ‘This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).’.CommentsClose CommentsPermalink
SEC. 104. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS WELLS.
‘(f) Application With Respect to Major Integrated Oil Companies- In the case of any taxable year in which the taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)), the allowance for percentage depletion shall be zero.’.CommentsClose CommentsPermalink
SEC. 105. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.
‘(d) Application With Respect to Major Integrated Oil Companies- This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).’.CommentsClose CommentsPermalink
SEC. 201. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS ROYALTY RELIEF.
(b) Administration- The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.CommentsClose CommentsPermalink
SEC. 301. DEFICIT REDUCTION.
The net amount of any savings realized as a result of the enactment of this Act and the amendments made by this Act (after any expenditures authorized by this Act and the amendments made by this Act) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.CommentsClose CommentsPermalink
SEC. 302. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.CommentsClose CommentsPermalink
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- “I'm for closing all loop holes, and going to a flat tax. these clown ar...” TadsDad
- “European style of government ... 200 years ago ... you think the word "p...” Aleksey