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Senate defeats Democrats' measure to kill off
Senate defeats bill to end tax breaks for Big Oil | The Kennebec Journal, Augusta, ME
Senate Republicans defeat White House proposal to strip subsidies from oil companies - Political Intelligence - A national political and campaign blog from The Boston Globe - Boston.com
Senate rejects repeal of oil incentives - Darren Goode - POLITICO.com
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I've got an idea. How about Democrats agree to kill their Green subsidies, and Republicans agree to kill fossil fuel subsidies simultaneously. Whadaya say?
See, this is why Tariffs are superior for market interventionism, they don't create deficits.
Last edited by Matt Foley; 03-31-12 at 03:46 PM.
Wait so we're gonna play favorites and eliminate general business deductions, just for oil companies?
There is one, just for oil companies, tax break.
The rest are general business deductions.
Just love the spin.
I was discovering that life just simply isn't fair and bask in the unsung glory of knowing that each obstacle overcome along the way only adds to the satisfaction in the end. Nothing great, after all, was ever accomplished by anyone sulking in his or her misery.
Lets get real. There are 9 types of tax breaks for oil companies.
Oil & Gas Industry Subsidies
Comments in that reddish color. 1 through 9 swiped from link.1. Intangible drilling costs---primarily wages for looking for oil. 7.83 billion. Expectation--lower wages for new oil workers and a flattening of the wage curve
2. Deduction for tertiary injectants-- fully support the elimination of this subsidy. The increased profit is all the impetus needed.
3. Percentage depletion allowance ---allows capital deduction of the vlaue of the well, even beyond the value of the well. Cap it at the well value and call it done. It looks like a questionable amortization scheme to me.
4. Passive investments --- limits losses from passive activites like renting land. I agree this should be capped for oil companies as it is for every other company.
5. Domestic manufacturing tax deduction ---dont support removing this, they are firmly in the manufacturing industry. If removed for them, it should be removed for all companies and it will not be so it should stay.
6. Geological and geophysical expenditures --- changes on the law to rework the amortization of exploration from 2 years to 7. Agree, more unform amortization is a good thing.
7. Foreign tax credit --- Prevents double taxation from US and foreign governemnts. Everyone else gets it, they should too.
8. Enhanced oil recovery credit ---with current technology isnt expected to see use. We dont use water to recover oil anymore. Should be eliminated, old law thats no longer needed.
9. Marginal well production ---given for low production wells so machinery already in place doesnt have to be replaced from disuse. Almost non-existent use by oil companies, production is too high. Agree, get rid of it if its not being used.
So...I agree with some of it. I disagree with some of it. Im willing to bet no one is willing to tackle each portion of their tax code piece by piece. Because if you did, I bet it would play out almost exactly the way I outlined with the far left and far right staking out all or nothing positions when common sense ones are what we need. Oh well, those are my opinions on the "subsidies" the oil companies are getting.
To show why I put subsidied in quotes: How Much Big Corporations Pay In Taxes [GRAPHIC]
Guys, thats a HuffPo link so attacking the messenger wont be of much traction. I think Oil companies are paying quite a lot in taxes even AFTER getting tax breaks. Do those breaks need to be examined? Yes. Can we do it while Obama is politicizing the issue instead of examining it with some common sense? Probably not.
Last edited by OpportunityCost; 03-31-12 at 07:16 PM.
I went looking around for what subsidies are proposed to be cut. Apparently the dem plan of action is the Menendez plan (Senate-NJ-D).
So what exactly is it?
Senate defeats Democrats' measure to kill off
So they want to eliminate the manufacturing tax break that a slew of other companies get. Eliminate them all or dont eliminate them. Picking just the oil companies seems like its targeting rather than a good tax policy....which it is. The other stuff is real non-specific but if its the amortization costs and drilling breaks, Im leaning for. Put the breaks up on a line by line vote. Vote em up or down.The Joint Committee on Taxation estimates that removing the incentives would raise $24 billion over 10 years, while extending the green-energy and efficiency incentives would cost $11.7 billion over the same period, according to Menendez’s office.
The plan would prevent major integrated oil companies from claiming deductions on certain drilling costs, strip their ability to claim a lucrative deduction on domestic manufacturing income that’s available to a suite of industries, and nix several other incentives as well.
Oh yeah...debate? We dont need no steenkin debate :
The vote Thursday followed several days of tactical maneuvering on both sides of the aisle. Republicans oppose the Menendez plan but unexpectedly voted Monday to allow debate on the bill, saying they welcomed the chance to pit their energy plans against those of Democrats.
But Senate Majority Leader Harry Reid (D-Nev.) cut debate on the bill short, blocking consideration of a handful of GOP amendments, including a proposal to dramatically expand offshore oil-and-gas leasing.
From the link:
To a certain extent, that is true, but it's only hitting the Americans who actually pay in toward federal income taxes that are getting hit twice. The thing worth noting is that the feds get a huge amount of federal revenue from the oil companies, so Obama is being disengenious as best, and downright manipulative at worst. The feds don't want to piss off one of their primary income sources besides federal income tax revenues from individuals. As much as the government likes to demonize Big Oil and Big Tobacco, they love the money generated for DC.Exxon pocketed nearly $4.7 million every hour" last year, and simply doesn't need taxpayer subsidies on top of companies' massive profits.
The president added "it's like hitting the American people twice."
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And I believe these tax breaks are standard business deductions enjoyed by several companies, not just oil companies..