With the new corp tax going to 28% from 21% that is a 7% increase. Oxy had 17.14 billion in revenue in 2020 and 7% of that would be 1.20 billion in new taxes, if based on revenue. Is that right, or do the cost get deducted first and you pay the taxes on net revenue? If 1.20 billion that is a lot of wells and salaries that would be affected. Just curious on how the new tax will hit us, and it it will cause cutbacks.
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Ease up people.....the guy said he didn't understand anything about accounting. No need to dog them.
But they did keep people employed and those people paid taxes and taxes on goods. So having Oxy around still helps the taxing authorities.
Corporate “income” taxes are paid on income, not revenue. That’s revenue minus operating costs minus G&A minus interest minus depreciation minus amortization etc etc. Oxy’s income was negative in 2020 so obviously the company did not pay any taxes in 2020.
Tax on Revenues? Sheesh, read a Finance book OP
As best as I can tell, Congress has not passed a bill raising corporate taxes.
Good point. They will lose less money with a higher tax rate. How much longer can they continue to lose money?
Higher tax rates will benefit Oxy. Oxy has had 6 straight quarterly losses so they are racking up deferred tax credits to apply in future. If Oxy loses $1B in a quarter, a 28% tax rate would be a $280 million credit vs only a $210 million credit with lower tax rates.
Taxes are not paid on revenue... they are paid on profits. Hasn’t been a lot of profits for OXY lately.
Pray not prey
This increase will impact profits. Better prey for higher oil prices.