US senators want to eliminate tax deductions for oil companies

Democratic Senate Caucus Says “Public Opinion Is Against Oil Companies” Amid Soaring Gasoline Prices Nationwide and Firms Claiming Record Profits from Rising Energy Prices for US oil companies, which are currently making record profits. This was reported by Bloomberg on Thursday. Seven senators led by Robert Menendez (from New Jersey) are developing a bill, the text of which has become familiar to the agency. In accordance with it, it is proposed to abolish tax deductions, including for the costs of drilling, exemption from payment for the right to develop subsoil in deep water areas. The bill will also tighten the rules regarding the deduction of foreign taxes, the agency said. “The American people should not fund the CEOs and shareholders of major oil companies while families are suffering from high [gasoline] prices,” Menendez said. A similar initiative has been put forward before, but now “public opinion is against the oil companies,” the senators said, because of the sharp increase in gasoline prices across the country and firms claiming record profits from rising energy prices. The increase in the retail price of gasoline in the United States began at the end of winter against the backdrop of rising world oil prices. US fuel prices peaked in June, with the average cost of a gallon (3.785 liters) of gasoline at $5,016. During the summer months, the authorities managed to achieve a serious reduction in gasoline prices in the country due to the release of oil reserves from the national reserve.