Oil Companies Paid More Than Bottom 75% of Taxpayers

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Includes: COP, CVX, SUN, XOM
by: Mark J. Perry

Investor's Business Daily: According to the American Petroleum Institute, in 2006 alone, U.S. oil companies paid some $138 billion in taxes to the Internal Revenue Service [IRS], and that doesn't include special oil severance, sales and use taxes companies also had to pay.

Internal Revenue Service (pdf file) (Table 6, p. 41): In 2005 (the most recent year for which data are available), the bottom 75% of all individual taxpayers (about 100 million taxpayers out of 132 million total) paid about $130.9 billion in income taxes. Adjusting by the recent average of about $5 billion in annual increases in tax revenue from individuals, it is estimated that the bottom 75% of individual taxpayers (more than 100 million individuals) paid about $136 billion in 2006.

Bottom Line: In 2006, U.S. oil companies paid more in corporate income taxes to the IRS ($138 billion) than the individual taxes paid by the more than 100 million individual taxpayers in the bottom 75% of all individual taxpayers (estimated to be $136 billion, see chart above).