Republican tax plan could disrupt oil markets

摘要

Republican leaders chided President Barack Obama when he proposed a $10/bl fee on oil and products, pronouncing it dead on arrival and a “tax on American consumers”. But the party's congressional leaders are now lining up behind a tax overhaul that could create windfall profits for US oil producers, with consumers footing the bill. Donald Trump's surprise victory in the presidential election has increased the odds that the US Congress will overhaul the tax code next year. US House of Representatives speaker Paul Ryan's reform plan involves cutting corporate tax rates to 20pc from 35pc at present and introducing a “border adjustment tax” that would overhaul the tax treatment of imports and exports, including crude and refined products. After this adjustment, corporations could no longer take a tax deduction for the expense of imported feedstocks and materials. In contrast, revenue from exports would not be subject to corporate taxes.