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Lets get real. There are 9 types of tax breaks for oil companies.
Oil & Gas Industry Subsidies
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.
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.
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