Bloomberg Tax
June 8, 2021, 6:01 PM

Oil Industry Resists Biden Plan to Tax Foreign Extraction Income

Michael Rapoport
Michael Rapoport
Senior Reporter, Bloomberg Tax

A new proposal from President Joe Biden to toughen taxes on U.S. oil and gas multinational companies is prompting pushback from critics who contend it could hurt U.S. competitiveness, and wouldn’t raise as much in revenue as the administration believes.

The proposal would tax a type of fossil fuel income that currently enjoys an exemption from U.S. taxes: foreign “extraction income,” which U.S. multinational companies earn from extracting oil and gas overseas. The Biden administration wants to get rid of the exemption and make that type of income subject to U.S. minimum taxes on foreign earnings—currently 10.5%, which Biden wants ...