Give them subsidies at taxpayer expense just like Big Oil gets, and hope they too can post $12 billion dollar quarters.
Love, The GOP.
Originally Posted by CJ7
so i have been involved in the oil industry one way or another since 1975, as a consultant and as an independent producer..i know tax law as it relates to the oil industry
so what subsidies exactly are you referring to?
its ridiculous...
what is the subsidy? is it they get to deduct their expenses like everyone else?
is it they get to write off the cost of drilling a dry hole, an unproductive hole in the ground that gets abandoned?
is it they get to deduct the cost of drilling a well that produces?..the hole...not the tangible equipment used in and around the well, that is depreciated like anyone else's equipment. yeah, but big oil has to reduce that cost by 30%, if they made that election, and amortize the rest of that hole over 60 months. but it, the deduction of the hole, is treated as a tax preference and alternative tax is due
do they get percentage depletion? nope
what subsidy are you talking about? its a big liberal myth that makes big oil a convenient whipping boy when not one person knows what they are talking about.
why the hell is deducting expenses a "subsidy"? it derives from a mindset that the government owns everything ....the only real subsidy in the tax code is the earned income credit, which pays people who dont pay taxes..everyone else pays at one time or another
what abt big hollywood...they can write off the first $15 million of production costs on a movie, or $20 million if the movie is made in a low income community........ they can write off the rest of the movie on what is called an "income forecast method", which means they can guess at their income stream and match a proportionate share of any remaining undeducted cost with the income as the income comes in. this means the lions share of costs are written off in year one..what a subsidy