master limited partnerships

New Earth Track analysis shines a light on fossil fuel subsidies through tax-exempt master limited partnerships (MLPs)

If a company or an industry is going to get subsidized, there are good ways and there are better ways for it to happen if one is sitting in the corporate suite.  Among the best is to receive big subsidies that, while not flowing to your competitors, arrive in a form that nobody seems to notice.  The benefits of this structure are clear:  while the recipient gets a large slug of financial support, because few people see or understand the largesse, the political cost to both obtain and retain the subsidy is relatively low.  Master Limited Partnerships, the subject of Earth Track's most recent

Too Big to Ignore: Subsidies to Fossil Fuel Master Limited Partnerships

Special legislative provisions have allowed a select group of industries to operate as tax-favored publicly-traded partnerships (PTPs) more than 25 years after Congress stripped eligibility for most sectors of the economy. These firms, organized as Master Limited Partnerships (MLPs), are heavily concentrated in the oil and gas industry. Selective access to valuable tax preferences distorts energy markets and creates impediments for substitute, non-fossil, forms of power, heating, and transport fuels.

Master Limited Partnerships: exempt from corporate taxation, dominated by oil and gas industry

Master Limited Partnerships (MLPs) are a special corporate form, used primarily by natural resource industries.  They enable firms to both raise capital on public equity markets and to pay zero corporate income taxes.  MLPs deserve far more scrutiny as energy subsidies than they have received to date.   Although the US Energy Information Administration (EIA) excluded them from their most recent study of US energy subsidies on the grounds that other industries also benefit (so the subsidies are not "energy-specific"), EIA's logic is weak.  Based on data compiled by the National Association o

Counting with Mitt: Subsidies to fossil fuels that the campaign forgot

Part 2 of my review of energy subsidies and the Romney campaign is a bit long for a blog posting.  Thus, it has been uploaded as a PDF instead, and can be accessed here.  Issues covered include conflicts between the private equity world view and good national policy; how appropriate adjustments to Romney's subsidy baseline alter the conclusions he drew from the figures, and a discussion of missing subsidies in a number of key areas:  tax-exempt oil and gas master limited partnership

Subscribe to master limited partnerships