The other day, I mentioned a report by a pair of NGOs on the subject of fossil fuel subsidies, noting that the usual suspects in the mainstream media had failed to mention that in the UK oil companies are subject to a supertax on top of the Corporation Tax to which all companies in the country are subject.
It now seems that the report was even more misleading than we thought.
The report by Oil Change International is a complete distortion of facts. The authors have described as “subsidies” normal deductions of expenses and capital costs from revenues for calculation of taxable income. These are procedures which are followed in all fiscal systems in all countries for all forms of business and investment endeavors. Under normal definitions of “subsidy” the United States has no subsidies for the oil and gas industry which is why Obama has taken no steps to reduce them.
I wonder if Roger Harrabin is going to investigate?