0
ya the PSU oil companies get the subsidies from the government. As the oil prices in retail market in most countries like India are governed by the government so in order to compensate for the losses occured by the PSU oil companies the government provides subsidies. These subsidies are in the form of Oil Bonds issued by the government to these oil companies, which can be encashed by the companies whenever they require funds.
In America they are granted tax breaks (much like any other business, though). But we have to look at the net factor of a lot of things. For instance, many oil companies are punished for pollution or subject to higher taxes than most businesses. ExxonMobil usually pays about twice its profit in taxes every year (If I remember correctly, Exxon made $17B dollars last year but paid $34B in taxes).
----
In the USA Petroleum companies are the beneficiaries of preferential tax credits and rates which are significantly lower than other businesses. Including Federal subsidies for: Percentage depletion allowance, nonconventional fuel production credit, Expensing of exploration and development costs, enhanced oil recovery credit, Foreign tax credits (FTCs), Deferral of foreign income, Accelerated depreciation allowances, Expensing of tertiary injectants, and Exclusion of interest on industrial development bonds for energy facilities.
In addition to the federal tax subsidies State and Local tax rates on the sale of gasoline is approximately 1/3 lower than the average sales tax rate on other types of products.
Many temporary tax relief reforms such as the The Taxpayer Relief Act of 1997 (TRA) etc cost another 2 billion in 1997 dollars per year that once in place have yet to be removed due to politicians being sympathetic to the wishes of the petroleum industry.
Not only do these tax provisions distort the real price of gasoline at the pump, but promote the general environmentally unfriendly practices of the oil industry over the development of cleaner alternative green fuels.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
The government contributed to the building of the transcontinental railroad by?
The Government granted the Eastern and Pacific Railroad Companies subsidies to help them expand.
A government policy that protects domestic producers against international competition?
subsidies
Why did the government give railroads subsidies in the late 1800s?
because they had to go to the bathroom
Which of the following would Alexander Hamilton have proposed?
D) providing government subsidies to manufacturers
Who benefited the transactions that became known as the Teapot Dome Scandal?
albert fall and private oil companies
How many oil companies get subsidies?
500 oils
Why did the gorvernment provide subsidies to railroad companies?
from the government
How much are oil companies subsidized by the government?
Oil companies in the United States receive various subsidies from the government, ranging from direct payments to tax breaks and incentives. Estimates suggest these subsidies can amount to anywhere from $4 billion to $20 billion annually. The exact amount can vary depending on the inclusion of different types of support and how it is calculated.
Which is an argument in favor of free trade?
Government subsidies to private companies will allow those companies to export more of their goods
The government contributed to the building of the transcontinental railroad by?
The Government granted the Eastern and Pacific Railroad Companies subsidies to help them expand.
Did Barack Obama recently sign an executive order regarding takeover of oil companies?
No, that is another internet myth. President Obama would like to see oil companies pay their fair share of taxes (some companies still get government subsidies, despite not needing them-- oil companies are making record profits), but he has never wanted to take them over, nor is there any legislation about this pending in congress.
What action did the government take to encourage business growth in the late 19th century?
They offered subsidies for large companies and pioneers to develop land.
A government policy that protects domestic producers against international competition?
subsidies
Which kinds of government financial aid and land grants paid for railroad construction?
subsidies
Are government subsidies included in GDP?
yes
Why is it that subsidies are not given to public limited companies?
Yes, subsidies simply give public limited companies. It's always been like that and it doubtless will always stay that way, too
Why were federal and state governments willing to give land and subsidies to the railroad companies?
the federal and state governmernt willing to give land and subsidies to the railroad companies because they had more power
