The tax bill that is working its way toward President Trump's desk should be a boon to corporate America. The current proposal, which looks like it has the votes to pass, will drop the corporate tax rate from the current 35% to 21%.
But energy companies, which have historically had a higher tax burden than other companies, stand to benefit the most.
The Highest-Taxed Sector
According to the corporate tax calculator at MarketWatch, the energy sector's median tax rate for the past 11 years was 36.8%, far above the 30% average tax rate for all S&P 500 companies.
Companies at the top of the list, like Marathon Oil Corporation and ConocoPhillips, pay taxes at a rate of nearly 50%. That's primarily because they have significant foreign operations, and incur foreign taxes that in some cases are much higher than U.S. taxes. In addition, they usually have to pay severance taxes for oil and gas they extract.
Even most of the lowest-taxed companies on the list pay more taxes than the average S&P 500 company. But energy companies are getting two major breaks in the new tax bill.Read more by clicking here.
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