Analysis of the early post-tax reform data from large public companies suggests that many profitable firms are paying no federal income taxes, and often getting refunds. Firms involved with fossil fuels have been big winners. An April paper by the Institute on Taxation and Economic Policy in Washington, DC reviewed data on Fortune 500 firms. They found 60 that paid zero federal corporate income taxes despite having significant pretax income. Indeed:
The optimal position for your industry in any tax reform is to see general tax rates drop while also keeping all of your old subsidies. The political lobbying on these bills is enormous, and given the scale of the energy sector in the US economy, and the need to transition towards lower carbon fuel sources, it seemed important to look at the tax reform proposals through the lens of energy.
Republican-led plans to reform our tax system have now been introduced in the Senate and passed in the House. This is trillion dollar legislation (the extra deficits alone are estimated at $1.5 trillion between 2018 and 2027), and a feeding frenzy for lobbyists trying to get new perks in the bill or protect the ones they have.