I am a US Army Special Forces (Green Beret) Vietnam combat veteran with civilian service in Iraq and Afghanistan. In 2009, my peers in the Arizona veterans community nominated and inducted me into the Arizona Veterans Hall of Fame. I’ve dedicated my life to serving and protecting our nation’s interests, values, and well-being. This commitment compels me to scrutinize our foreign policies and domestic decisions that reflect our nation’s true priorities—especially when allocating our collective resources through taxation.
Reflecting on this Tax Day, it’s impossible to ignore the stark differences in tax priorities between the former and current administrations. With this sense of duty, I must address the substantial benefits the oil and gas industry has reaped from the Tax Cuts and Jobs Act, enacted under President Trump’s administration.
The law preserved significant industry tax breaks and introduced new benefits, enhancing the financial position of major oil companies. Notably, it allowed the full tax deductibility of capital expenditures and repealed the corporate alternative minimum tax, significantly lowering the industry’s tax burden. This adjustment has primarily benefited upstream, midstream, and downstream sectors, alongside substantial benefits for publicly traded oil and gas partnerships.
The magnitude of these tax benefits is profound. A 2018 report highlighted that the industry was among the “greatest financial beneficiaries” of the tax law, with immediate tax breaks totaling $25 billion. Companies like ExxonMobil, Chevron, and ConocoPhillips saved billions in taxes and funds.
Moreover, the industry’s effective tax rate over the first five years after the law was a mere 2%, one of the lowest across all sectors. The Covid pandemic further compounded this preferential treatment when the CARES Act funneled additional billions in tax benefits to these companies.
In stark contrast, the Biden-Harris administration has shifted focus towards the future, emphasizing support for American families and the burgeoning clean energy economy over the continued enrichment of oil and gas giants. President Biden’s clean energy plan offers hope for sustainable growth, with tax credits and rebates designed to lower costs and reduce pollution. These incentives include up to $7,500 in credits for electric vehicle purchases, $1,200 for home weatherization upgrades, and an uncapped tax credit covering 30% of the installation costs for rooftop solar – initiatives that directly benefit the public and the planet.
As a veteran and a concerned citizen, I find these contrasting priorities revealing. The question isn’t just about the allocation of tax benefits, but the values such decisions reflect. While the previous administration gave tax breaks to Big Oil, the current administration has invested in our collective future. Lucrative companies saved billions under the prior administration instead of directing that money toward healthcare, education, veterans’ benefits, or our transition to a clean energy economy.
One possible way to use the tax benefits currently enjoyed by a profitable industry is to redirect them toward addressing pressing national issues, such as supporting those who have served. Our nation’s fiscal policies should reflect our values, prioritizing the needs of the many over the interests of a privileged few.
We must reevaluate these wholly inequitable tax policies and advocate for a system that aligns with the broader public interest and addresses our country’s urgent and pressing challenges.
David Lucier is an American patriot and concerned citizen.
