"Today we’re releasing a new report with Earth Track that exposes some $4 billion per year in new fossil fuel subsidies which have gone unaccounted for in previous estimates. And what’s worse? It’s growing. Our new analysis dives into a shady corporate structure called “Master Limited Partnerships (MLPs)” and seeks to do a more thorough job of quantifying the value of tax avoidance the fossil fuel industry is able to enjoy by utilizing these structures. MLPs were largely ruled out by the IRS for most US industries some 25 years ago, but special rules continue to provide eligibility for fossil fuels, and have allowed a growing range of oil and gas activities to escape corporate income taxes entirely." "According to the new report, MLPs cost the US treasury as much as $13 billion in lost tax revenue between 2009 and 2012. Previous estimates put this figure six times lower. And this number, in the absence of any action otherwise, is only expected to grow. Fossil fuel interests continue to convert to MLPs at an alarming rate through asset spin-offs, mergers, and by seeking expanded eligibility granted not only by Congress, but also through rather secretive IRS rulings."
Posted on: Wed, 24 Jul 2013 21:26:57 +0000