Environmental News for a Healthier Planet and Life

Fossil Fuel Companies Scored Billions in Tax Breaks in 2020 Before Laying off Thousands of Workers

Fossil Fuel Companies Scored Billions in Tax Breaks in 2020 Before Laying off Thousands of Workers
Marathon Petroleum Corporation's Los Angeles Refinery in Carson, California, on April 25, 2020. ROBYN BECK / AFP via Getty Images

Fossil fuel companies got billions in tax breaks and laid off more than 58,000 workers last year, a report from BailoutWatch found.

Provisions in the CARES Act passed last March, gave 77 fossil fuel companies $8.2 billion in tax breaks, and their laid off workers a $1,200 stimulus check. Using SEC data, the report shows Marathon Petroleum, the biggest single beneficiary, got more than $2 billion before laying off almost 2,000 workers — about 9% of its workforce at a rate of around $1 million per laid off worker.

Five companies went bankrupt after receiving $308.7 million in tax bailouts and laid off a total of 5,683 workers. "I'm not surprised that these companies took advantage of these tax benefits, but I'm horrified by the layoffs after they got this money," said Chris Kuveke, a researcher at BailoutWatch, told The Guardian. "Last year's stimulus was about keeping the economy going, but these companies didn't use these resources to retain their workers. These are companies that are polluting the environment, increasing the deadliness of the pandemic and letting go of their workers."

As reported by BailoutWatch:

As Washington debates ending tax subsidies for fossil fuels, part of President Joe Biden's $2 trillion infrastructure proposal, fossil fuel companies are quietly reporting their employee headcounts and final tax bills for 2020. The data underscore the hypocrisy of claims that fossil fuels are a necessary engine of employment and succeed on an equal playing field in the free market.
The bailouts are the tip of a much bigger iceberg: Fossil fuels have long benefited from a trove of tax-code provisions. In the century since they emerged, the coal, oil, and gas industries' strength has reflected not market efficiencies, as defenders claim, but government largesse that far exceeds what has so far been extended to the clean energy sector.

For a deeper dive:

The Guardian, InsideClimate News

For more climate change and clean energy news, you can follow Climate Nexus on Twitter and Facebook, sign up for daily Hot News, and visit their news site, Nexus Media News.

David Attenborough narrates "The Year Earth Changed," premiering globally April 16 on Apple TV+. Apple

Next week marks the second Earth Day of the coronavirus pandemic. While a year of lockdowns and travel restrictions has limited our ability to explore the natural world and gather with others for its defense, it is still possible to experience the wonder and inspiration from the safety of your home.

Read More Show Less
EcoWatch Daily Newsletter

By Michael Svoboda

For April's bookshelf we take a cue from Earth Day and step back to look at the bigger picture. It wasn't climate change that motivated people to attend the teach-ins and protests that marked that first observance in 1970; it was pollution, the destruction of wild lands and habitats, and the consequent deaths of species.

Read More Show Less
An Amazon.com Inc. worker walks past a row of vans outside a distribution facility on Feb. 2, 2021 in Hawthorne, California. PATRICK T. FALLON / AFP via Getty Images

Over the past year, Amazon has significantly expanded its warehouses in Southern California, employing residents in communities that have suffered from high unemployment rates, The Guardian reports. But a new report shows the negative environmental impacts of the boom, highlighting its impact on low-income communities of color across Southern California.

Read More Show Less
Xiulin Ruan, a Purdue University professor of mechanical engineering, holds up his lab's sample of the whitest paint on record. Purdue University / Jared Pike

Scientists at the University of Purdue have developed the whitest and coolest paint on record.

Read More Show Less

Less than three years after California governor Jerry Brown said the state would launch "our own damn satellite" to track pollution in the face of the Trump administration's climate denial, California, NASA, and a constellation of private companies, nonprofits, and foundations are teaming up to do just that.

Read More Show Less