Canadian Taxpayers Fork Out $3.3 Billion Every Year to Super Profitable Oil Companies

[mentalfloss]

Canadian Taxpayers Fork Out $3.3 Billion Every Year to Super Profitable Oil Companies

Some of the largest, most profitable companies in Canada are collectively receiving an estimated $3.3 billion in subsidies every year from Canadian taxpayers, according to a new analysis.

The report, released today by the International Institute for Sustainable Development, a Canadian-based think tank, outlines how billions in federal and provincial tax breaks and corporate incentives benefit companies in the oil and gas sector like Imperial Oil, whose earnings in 2015 were CDN$1.1 billion.

The new analysis comes as Trudeau is in China for the G20 Summit. In 2009 G20 leaders committed to a complete phase out of all fossil fuel subsidies over the medium term and Justin Trudeau, while on the campaign trail, made an election promise to fulfill that commitment.

“Tweet: Fossil fuel subsidies work against Canada’s progress in putting a price on carbon Canadian Taxpayers Fork Out $3.3 Billion Every Year to Super Profitable Oil Companies | DeSmog Canada @JustinTrudeau #cdnpoli #oilandgasFossil fuel subsidies work against Canada’s commendable progress in putting a price on carbon — they give money and tax breaks to the sources of carbon pollution that we’re trying to scale back,” Amin Asadollahi, North American Lead on Climate Change Mitigation at the International Institute for Sustainable Development, said.

Fossil Fuel Subsidies in Canada

Between 2013 and 2015 the federal government handed out an average of CAD $1 billion every year through the Canadian Development Expense program. During that same period an average of CAD $148 million was provided to oil and gas companies through the Canadian Exploration Expense program.

B.C. and Alberta also provide the lion's share of oil and gas subsidies through royalty reductions and drilling credits.

Canadian Taxpayers Fork Out $3.3 Billion Every Year to Super Profitable Oil Companies | DeSmog Canada

 

[petros]

billions in federal and provincial tax breaks

Hey Orwellfloss. The Ecofascist doublespeak is getting pathetic.

Tax credits are not subsidies.

 

[mentalfloss]

Yes they are.

 

[taxslave]

Yes they are.

Only in the pathetic little minds of the anti oil crowd. Not in reality. Take an accounting course and learn something about the topics you troll.

 

[petros]

Yes they are.

No, they are not.

Are you willing to put your balls on the table and take this challenge?

Post the definitions of tax credit and subsidy found in Blacks Dictionary of law found here :Black's Law Dictionary - Free Online Legal Dictionary or download their app and put it to a vote.

Yes or no?

 

[mentalfloss]

Grants and other direct payments

The most basic form of a subsidy, and the one that still defines a subsidy in some dictionaries, is a cash payment or grant. Although few grants are paid out in currency any more (most are paid via cheque or bank transfer), it is still common to refer to them as "cash" grants, payments or subsidies.

Tax concessions

In countries with well-developed tax systems, subsidies provided by reducing companies' tax burdens are commonplace. Examples include tax exemptions (when a tax is not paid), tax credits (which reduce a tax otherwise due), tax deferrals (which delay the payment of a tax) and a host of other instruments. In common language these preferential tax treatments are called tax breaks or tax concessions; public-finance economists refer to them as tax expenditures. They should not, however, be confused with general tax reductions.

https://www.iisd.org/gsi/subsidy-types

 

[petros]

No cash is given to Canadian oil companies. They are not subsidized.

 

[mentalfloss]

I accept your submission.

 

[petros]

Every business in Canada gets tax credits as do individuals.

 

[taxslave]

Grants and other direct payments

The most basic form of a subsidy, and the one that still defines a subsidy in some dictionaries, is a cash payment or grant. Although few grants are paid out in currency any more (most are paid via cheque or bank transfer), it is still common to refer to them as "cash" grants, payments or subsidies.

Tax concessions

In countries with well-developed tax systems, subsidies provided by reducing companies' tax burdens are commonplace. Examples include tax exemptions (when a tax is not paid), tax credits (which reduce a tax otherwise due), tax deferrals (which delay the payment of a tax) and a host of other instruments. In common language these preferential tax treatments are called tax breaks or tax concessions; public-finance economists refer to them as tax expenditures. They should not, however, be confused with general tax reductions.

https://www.iisd.org/gsi/subsidy-types

Well you got it off the internet so it must be true.

Too bad that doesn't meat the accounting textbook definition of subsidies.

 

[TenPenny]

From 'Alberta Oil' magazine:


In a 2010 report prepared by EnviroEconomics for the IISD examining subsidy support in three provinces – Alberta, Saskatchewan, and Newfoundland and Labrador – Sawyer used the World Trade Organization’s definition of a subsidy. It’s one agreed to by 153 member countries including Canada. That definition identifies four types of subsidies: where government provides direct transfers of funds or liabilities, foregoes revenue, provides or purchases goods or services, or provides income or price support. EnviroEconomics estimated that provincial and federal governments were providing about $2.8 billion annually in subsidies to the oil sector in the three provinces. The federal government share of that is about $1.4 billion annually.
The study identified 63 different subsidy programs, 18 of which were in Alberta. Most are designed, reports EnviroEconomics, to increase exploration and development by reducing the costs of those activities through tax breaks and royalty reductions. But it doesn’t mention, for instance, the enormous financial commitments the province has made to the Sturgeon Refinery. The Wild Rose party has accused the province of giving the companies behind the project – Canadian Natural Resources Ltd. and North West Upgrading Inc. –at least $1.3 billion in “corporate welfare.”

 

[mentalfloss]

You're just an ecofaxist.

 

[petros]

Sawyer used the World Trade Organization’s definition of a subsidy

.


Which makes every business and taxpaying individual subsidized by their definition.

That makes any Ecofascist attempt at making O&G tax credits unique an impossibility.

Orwellfloss and Ecofascist doublespeak with nothing forked out to or by anyone.

How much is forked out for paper clips every year? There are tax credits for paper clips.

 

[TenPenny]

.


Which makes every business and taxpaying individual subsidized by their definition.

That makes any Ecofascist attempt at making O&G tax credits unique an impossibility.

Orwellfloss and Ecofascist doublespeak with nothing forked out to or by anyone.

How much is forked out for paper clips every year? There are tax credits for paper clips.

And what's your point? That you don't know what you're talking about when you claim no Oil & Gas company in Canada is subsidized? You've already stated that you don't know what 'Oil and Gas' means as a business sector.

 

[PoliticalNick]

How much is given to wind & solar energy producers? Then lets look at how much tax is paid by each industry and compare that. We should also look at what percentage of power is generated from fossil fuels compared to W&S and compare tax burden and subsidies to those percentages. I'm pretty sure you will find W&S pay basically no tax yet receive far more than $3.3 billion in subsidies while producing <1% of the power. So before you scream and stomp your feet in the usual tantrum like manner consider your beloved green energy is a huge sinkhole in the economy whilst oil, gas and coal contribute billions in taxes and royalties.

Always should go with apples to apples comparisons instead of one-sided reports made to bolster a fraudulent portrayal of something you don't like.

 

[petros]

And what's your point? That you don't know what you're talking about when you claim no Oil & Gas company in Canada is subsidized? You've already stated that you don't know what 'Oil and Gas' means as a business sector.

Are you high?

How much is given to wind & solar energy producers? Then lets look at how much tax is paid by each industry and compare that. We should also look at what percentage of power is generated from fossil fuels compared to W&S and compare tax burden and subsidies to those percentages. I'm pretty sure you will find W&S pay basically no tax yet receive far more than $3.3 billion in subsidies while producing <1% of the power. So before you scream and stomp your feet in the usual tantrum like manner consider your beloved green energy is a huge sinkhole in the economy whilst oil, gas and coal contribute billions in taxes and royalties.

Always should go with apples to apples comparisons instead of one-sided reports made to bolster a fraudulent portrayal of something you don't like.

Renewables get subsidies and tax credits. Double whammy.

 

[PoliticalNick]

It would appear from a quick google search wind power is raping the population far worse than oil & gas.

Ontario pays producers $0.11-$0.135/Kwh for wind energy vs $0.07/Kwh for nuclear, gas or water producers. The province sells excess energy to the US at $0.063/Kwh

Wind makes up 4% of the total power but constitutes 20% of total cost
Ontario Wind Turbines | Ontario has the most expensive electricity in North America

In Ontario alone $1.92 billion in subsidies with most of it going to a small group of very profitable companies.

According to an analysis by the Consumer Policy Institute and Energy Probe, 90% of the wind subsidies went to just 11 companies, 80% of the subsidies went to nine companies with annual revenues over $1-billion, 60% of the subsidies went to six companies with more than $10-billion in annual revenue.

Ontario’s big wind bonanza: Over 90% of subsidies funneled to just 11 companies | Financial Post

 

[mentalfloss]

Wind and Solar should be getting all of the fossil fuel subsidies in order to get those industries on equal footing.

 

[PoliticalNick]

Wind and Solar should be getting all of the fossil fuel subsidies in order to get those industries on equal footing.

They are already subsidized far more than any other producer and they get paid a higher rate for what they do produce which is a lousy 4% of the total production. It's a pretty sweet deal already though I'm sure somehow in your retarded mind you believe they should get 100% of their operating and capital costs subsidized and still sell for twice the price.

You are beyond believable and have no credibility on any subject at this time.

 

[mentalfloss]

They need the support in order to get off fossil fuels as quickly as possible.