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They were listed in post number 9. Oh yes I know all businesses can have these tax deductions. I am sure McDonalds will be happy to know that they can get a tax break for drilling costs.
If you say the letters slowly, maybe you can do it. Try it...I was W-R-O-N-G.
#9 is a list of tax breaks, AGAIN, available to EVERYONE.. Thats not a subsidy.. Why dont you learn what a subsidy is before you start talking about who gets them
Yes, you were W R O N G... A G A I N.. Repeating the lies, arent going to make you R I G H T..
#9 is a list of tax breaks, AGAIN, available to EVERYONE.. Thats not a subsidy.. Why dont you learn what a subsidy is before you start talking about who gets them
Yes, you were W R O N G... A G A I N.. Repeating the lies, arent going to make you R I G H T..
You say Tomato I say tomato. Lets just take all of the TAX BREAKS off the table that are listed in the 9th post. You would be O.K. with that then. Good, problem solved. Move along.
You say Tomato I say tomato. Lets just take all of the TAX BREAKS off the table that are listed in the 9th post. You would be O.K. with that then. Good, problem solved. Move along.
If you take them off the table for EVERYONE, we'll be able to talk.. Until there is any such proposal, then its just liberal Democrats LYING TO YOU, claiming they are subsidies for "big oil", when they arent..
These tax breaks do NOT sound like they are invented for anyone but BIG OIL.
1. Intangible drilling costs. Firms engaged in the exploration and development of oil or gas properties may expense (deduct in the year paid or incurred) certain types of drilling expenditures from their taxes. These costs include wages, fuel, repairs, hauling, and supplies related to and necessary for drilling and preparing wells for the production of oil and gas. Other companies incurring similar types of costs must recover this cost over the life of the investment. SAVING: $7.839 billion over 10 years.
2. Deduction for tertiary injectants. Tertiary, or enhanced oil recovery, methods increase the amount of oil that a company can extract from a well by an additional 5 percent to 15 percent according to some research. This tax expenditure subsidizes the costs of tertiary injectants—the fluids, gases, and other chemicals that are pumped into oil and gas reservoirs as part of this process. The subsidy essentially gives companies government money for acting in ways that will enhance their profits. It allows companies to expense the costs of tertiary injectants, even though such costs should be recovered over time. Companies can alternatively choose to deduct these costs as an intangible drilling cost. SAVING: $67 million over 10 years.
3. Percentage depletion allowance. Percentage depletion allows an independent oil company to deduct from its taxes about 15 percent from the revenue generated from a well, even if that amount exceeds the well’s total value. This means that oil companies take a deduction as long as a well is producing oil, without regard to how much, or whether, the well is still declining in value. Companies in other industries are only allowed to deduct an amount that represents the decline in their investment’s value that year. SAVING: $10 billion over 10 years.
4. Passive investments. The government generally only allows investors to deduct a limited amount of losses from “passive activities†such as renting land in order to prevent tax shelters. Yet oil and gas properties are exempt from this rule. This gives oil and gas companies a competitive edge over other types of energy companies. SAVING: $180 million over 10 years.
5. Domestic manufacturing tax deduction. Companies that manufacture, produce, or extract oil and gas or any primary derivative receive a manufacturing subsidy provided that the product was made in the United States. But since removing this subsidy does not affect the production of oil, the subsidy does not significantly affect business decisions and eliminating the subsidy would not affect consumer prices. The subsidy is essentially a throwaway for oil companies. The tax expenditure is provided through a deduction for 9 percent of income, subject to a limit of 50 percent of the wages paid that are allocable to domestic production during the taxable year. SAVING: $17.3 billion over 10 years.
6. Geological and geophysical expenditures. The Energy Policy Act of 2005 created this tax subsidy, which allows companies to deduct the costs associated with searching for oil, recovering the costs over a two-year period. SAVING: $1.1 billion over 10 years.
7. Foreign tax credit. This credit is intended to prevent the double taxation of income that is taxed abroad but also subject to tax in the United States. Yet companies, particularly oil companies, have managed to exploit this subsidy even when they don’t pay income taxes abroad. SAVING: $8.5 billion over 10 years.
8. Enhanced oil recovery credit. Companies receive a 15 percent income tax credit for the costs of recovering domestic oil when they use “enhanced oil recovery†methods to extract oil that is too viscous to be extracted by conventional primary and secondary water-flooding techniques. The EOR credit is nonrefundable and is allowed if the average wellhead price of crude oil (using West Texas Intermediate as the reference) in the year before the credit is claimed is below the statutorily established threshold price of $28 (as adjusted for inflation since 1990) in the year the credit is claimed. Oil prices in fiscal year 2006 were too high for companies to receive this subsidy, but the subsidy remains in existence. Its elimination is not expected to produce budget savings.
9. Marginal well production. This provision provides a subsidy for oil and gas produced from certain types of oil and gas wells. These wells include those that produce heavy oil and those with an average production within a statutorily specified range. Oil prices were too high for companies to receive this subsidy in fiscal year 2006, but the subsidy remains in existence. Its elimination is not expected to produce budget savings.
The total government savings from eliminating these subsidies is projected to be $45 billion over 10 years.
Quote:
Originally Posted by pghquest
Thats not a subsidy list, thats a list of tax credits available to ALL busineeses in america
I ALWAYS capitalize America, I think is shows respect for our country and those that gave their lives so we can live free. it isn't like you cannot find the shift key, LOL
Quote:
, and many of them liberals have asked for.
Why are you singling out big oil?
That seems kinds silly considering the TOTAL "credits" are about the same size FOR THE WHOLE INDUSTRY, that GE alone enjoyed.
Wy would they not claim the same credits that EVERY SINGLE BUSINESS IN AMERICA enjoys?
I loved this line from the bottom of your blog entry that you so willingly shared with us.
This is a cross-post from the Center for American Progress.
Even better was the next line that pointed out that Weiss, the author, is the main CAP man on global warming.
Hot damn, man this is some real propaganda. Is there a chance that you can explain to all of us what that marginal well production is and why there are subsidies for it anyway? Surely CAP shares that kind of good stuff with you progs.
I looked and looked at that thing to find out how much it costs us, as a nation, for GE not to pay any income tax but it just wasn't there. I was really thrilled by the use of that 10 year use just as Congress uses 10 years to point out things.
Yep, CAP has our number. Of course, you do know what CAP is, don't you?
Do you really want me to break down the list, one by one and show you why you are wrong? Really, do you want to be embarassed like that? Be sure before you respond. Obviously NONE of you guys have any education on business expenses..
I loved this line from the bottom of your blog entry that you so willingly shared with us.
This is a cross-post from the Center for American Progress.
Even better was the next line that pointed out that Weiss, the author, is the main CAP man on global warming.
Hot damn, man this is some real propaganda. Is there a chance that you can explain to all of us what that marginal well production is and why there are subsidies for it anyway? Surely CAP shares that kind of good stuff with you progs.
I looked and looked at that thing to find out how much it costs us, as a nation, for GE not to pay any income tax but it just wasn't there. I was really thrilled by the use of that 10 year use just as Congress uses 10 years to point out things.
Yep, CAP has our number. Of course, you do know what CAP is, don't you?
Forget for a moment where the article came from, is the information inaccurate?
You don't expect big oil to forthcoming with this information do you?
Pay attention to current events and you won't have to play silly games.
Would these current events be like what Jazzy Tall posted where at the end of the blog entry were the words that said it was a cross post from CAP? Do you even know what CAP is?
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