Depleting US Strategic Oil reserves is all about election year damage control.

[Winston]

And who know what dirty tricks biden is up to that we cant see?

Oh, the hidden dirty tricks. Nice. LMAO

 

[Mac-7]

Why are you wasting time and bandwidth, that EO has been suspended. Biden has been selling leases hand over fist.

Leases yes, but few if any permits to drill

 

[Batcat]

What's the problem? We can replenish by buying Russian, Iranian, and Venezuelan oil.
You guys are thinking small.

Sure, we can buy oil from nations that hate our guts (assuming we are not at war with them).

Unfortunately it will not be cheap.

 

[Winston]

Leases yes, but few if any permits to drill

Wrong,

As Politico PRO reported today, “the Biden Interior Department approved nearly 900 more permits to drill on public land in 2021 than the Trump administration had in its first year in office,

Biden Approves Hundreds More Drilling Permits Than Trump

 

[Mac-7]

Wrong,

As Politico PRO reported today, “the Biden Interior Department approved nearly 900 more permits to drill on public land in 2021 than the Trump administration had in its first year in office,

Biden Approves Hundreds More Drilling Permits Than Trump

How does that square with biden’s solemn promise to the sweet, innocent little snowflake to end fossil fuel production and use?

 

[Toddsterpatriot]

That is just stupid. I mean why the hell are oil companies gobbling up the leases that are offered? It will be decades before fossil fuels are eliminated, more than enough time to get a return on investment. I mean do you Republicans ever listen to your own arguments. Oil companies are not drilling because they believe that Biden is going to unilaterally ban all fossil fuels one morning. Hell, he can't even stop issuing new permits on public lands. And if the oil companies really believed that they sure as hell wouldn't be buying new leases when they came up. It is like "Du Huh".

Common sense tells you what is going on. First, they are sucking up all the leases they can, stockpiling them, so when they do decide to drill, they will already have the leases. They got no damn interest in drilling now because they are making money hand over fist, limited supply, higher prices. Within this thread it has been noted that most of the major oil companies had record breaking profits last year--demand down, prices up, I mean hello howdy. What business wouldn't want to sell less for more. Again, "Du Huh".

Those oil companies are risk averse. They got their asses handed to them during the mortgage crisis, and handed to them again when Covid hit. Eliminate the pass through exemption, Trump's little personal gift to himself that many oil drillers have taken advantage of. Eliminate the depletion allowance, it's flippin stupid. Oil, and forestry, only two industries that it exist. I mean where is my depletion allowance on my well? And of course, we could increase the corporate tax rate and let the government subsidize some of that risk. But we have been down that road before.

I mean why the hell are oil companies gobbling up the leases that are offered?

Maybe they're hoping Biden comes to his senses?

Eliminate the pass through exemption, Trump's little personal gift to himself that many oil drillers have taken advantage of.

Great idea! When you raise taxes on an activity, you always get more of it.

Eliminate the depletion allowance, it's flippin stupid.

Is depreciation also stupid?

Oil, and forestry, only two industries that it exist.

An oil deposit with half the oil extracted, a gold mine with half the gold mined or a forest with half the trees harvested isn't worth less than before?

I mean where is my depletion allowance on my well?

How much income does your well generate?

 

[Winston]

I mean why the hell are oil companies gobbling up the leases that are offered?

Maybe they're hoping Biden comes to his senses?

Eliminate the pass through exemption, Trump's little personal gift to himself that many oil drillers have taken advantage of.

Great idea! When you raise taxes on an activity, you always get more of it.

Eliminate the depletion allowance, it's flippin stupid.

Is depreciation also stupid?

Oil, and forestry, only two industries that it exist.

An oil deposit with half the oil extracted, a gold mine with half the gold mined or a forest with half the trees harvested isn't worth less than before?

I mean where is my depletion allowance on my well?

How much income does your well generate?

 

[Winston]

Maybe they're hoping Biden comes to his senses?

What do you mean come to his senses? Seems he has already came around to their point of view, approved more permits his first year than Trump. Sold more leases than any president in their first year since Bush Jr. I think the oil companies are giving you a song and dance and with all your animosity toward Biden, you are singing and dancing along.

Eliminate the pass through exemption, Trump's little personal gift to himself that many oil drillers have taken advantage of.

Look, I benefit from the pass through exemption. I can tell you, it has no bearing whatsoever on my business activity. It is a nice little "bonus" come tax time, period. Until someone shows me some hard data demonstrating that the pass through exemption encouraged individuals to start small businesses I am going to call it exactly what it was. A nice little present for Trump and his family that he inserted in his tax cut bill. I mean what makes income from one's personal business different than income someone makes working a real job. All income should be treated the same, unless you are all about picking winners and losers. I thought Republicans didn't like the government picking winners or losers. Oh well, I guess that is another one of their "principles" they were willing to throw away in their worship of the Almighty Trump.

Is depreciation also stupid?

Can you depreciate an asset more than what it cost? Because the depletion allowance can exceed the purchase price of an asset in seven years in the oil industry. And here is the thing, when you purchase an oil well you are purchasing the oil that is in the ground. Why do you get a tax write off for taking it out? For lumber it makes even less sense. When you clear the land, for the most part, you are increasing the value. But you get a depletion allowance, talk about encouraging clear cutting. The depletion allowance, like the pass through exemption, is just another example of picking winners and losers.

How much income does your well generate?

Well, I don't pay a water bill, so that is "income". But what if I started bottling that water, I mean it is really good and residents around here live a long long time, probably the water. Do I get a depletion allowance then? Hell no, picking winners and losers. Again, you Republicans often spout about leveling the playing field but in actions, you warp it every which way but sideways for industries that throw you the Benjamins. That results in ineffective allocation of resources, contracts the frontier curve, and ends up costing us in economic productivity. But hey, that is all good as long as politicians keep getting their campaigns funded. Free market my damn ass.

 

[Toddsterpatriot]

Maybe they're hoping Biden comes to his senses?

What do you mean come to his senses? Seems he has already came around to their point of view, approved more permits his first year than Trump. Sold more leases than any president in their first year since Bush Jr. I think the oil companies are giving you a song and dance and with all your animosity toward Biden, you are singing and dancing along.

Eliminate the pass through exemption, Trump's little personal gift to himself that many oil drillers have taken advantage of.

Look, I benefit from the pass through exemption. I can tell you, it has no bearing whatsoever on my business activity. It is a nice little "bonus" come tax time, period. Until someone shows me some hard data demonstrating that the pass through exemption encouraged individuals to start small businesses I am going to call it exactly what it was. A nice little present for Trump and his family that he inserted in his tax cut bill. I mean what makes income from one's personal business different than income someone makes working a real job. All income should be treated the same, unless you are all about picking winners and losers. I thought Republicans didn't like the government picking winners or losers. Oh well, I guess that is another one of their "principles" they were willing to throw away in their worship of the Almighty Trump.

Is depreciation also stupid?

Can you depreciate an asset more than what it cost? Because the depletion allowance can exceed the purchase price of an asset in seven years in the oil industry. And here is the thing, when you purchase an oil well you are purchasing the oil that is in the ground. Why do you get a tax write off for taking it out? For lumber it makes even less sense. When you clear the land, for the most part, you are increasing the value. But you get a depletion allowance, talk about encouraging clear cutting. The depletion allowance, like the pass through exemption, is just another example of picking winners and losers.

How much income does your well generate?

Well, I don't pay a water bill, so that is "income". But what if I started bottling that water, I mean it is really good and residents around here live a long long time, probably the water. Do I get a depletion allowance then? Hell no, picking winners and losers. Again, you Republicans often spout about leveling the playing field but in actions, you warp it every which way but sideways for industries that throw you the Benjamins. That results in ineffective allocation of resources, contracts the frontier curve, and ends up costing us in economic productivity. But hey, that is all good as long as politicians keep getting their campaigns funded. Free market my damn ass.

Can you depreciate an asset more than what it cost?

Nope. So that makes it not stupid?

Because the depletion allowance can exceed the purchase price of an asset in seven years in the oil industry.

Yup.

And here is the thing, when you purchase an oil well you are purchasing the oil that is in the ground. Why do you get a tax write off for taking it out?

Because you're using up that asset you bought.

For lumber it makes even less sense. When you clear the land, for the most part, you are increasing the value.

When you buy land for lumber, you're using up the lumber.

Well, I don't pay a water bill, so that is "income".

How much of that "income" do you declare on your tax return?

But what if I started bottling that water,

What if you do?

Do I get a depletion allowance then?

Maybe you should ask a tax accountant?

That results in ineffective allocation of resources, contracts the frontier curve, and ends up costing us in economic productivity.

Sounds awful! How high do we have to raise taxes to expand the frontier curve?

 

[Winston]

Can you depreciate an asset more than what it cost?

Nope. So that makes it not stupid?

Because the depletion allowance can exceed the purchase price of an asset in seven years in the oil industry.

Yup.

And here is the thing, when you purchase an oil well you are purchasing the oil that is in the ground. Why do you get a tax write off for taking it out?

Because you're using up that asset you bought.

For lumber it makes even less sense. When you clear the land, for the most part, you are increasing the value.

When you buy land for lumber, you're using up the lumber.

Well, I don't pay a water bill, so that is "income".

How much of that "income" do you declare on your tax return?

But what if I started bottling that water,

What if you do?
,
Do I get a depletion allowance then?

Maybe you should ask a tax accountant?

That results in ineffective allocation of resources, contracts the frontier curve, and ends up costing us in economic productivity.

Sounds awful! How high do we have to raise taxes to expand the frontier curve?

Because you're using up that asset you bought.

That is not the purpose of the depletion allowance. The purpose is to recoup those companies for their cost of drilling and exploration. Those cost are deductible anyway, but they can use the depletion allowance if it is larger. WTF--do other businesses have some type of minimum deductibility?

When you purchase a building, well someone built that building. And in most cases, you are not buying a building so you can take pieces off of it every year and sell them. But when you purchase an oil well, well you, nor anyone else for that matter, did a damn thing to "build" that oil. You might have to work to get it out of the ground, but the asset itself is there. DId landowners in the Old West get a depletion allowance for the buffalo they killed? How is that different?

Sounds awful! How high do we have to raise taxes to expand the frontier curve?

The fact that I have to explain this to you is indicative of just how far down the rabbit hole the Republican party has sunk. It is not about raising taxes, it is about "Fair" taxes. Hell, what happened to the "Fair tax" movement within the Republican party? When you give special tax breaks to industries, rather it is fossil fuels or wind power, you distort the economic decision making process. We may very well had long moved away from fossil fuels if these economic distorting tax breaks had been eliminated. The reality is these special tax breaks are specifically created so the government can effect the economic decision making process. Do I need to repeat that? Not the "free market", but the government. I mean how is that working out for you? What happened to the conservative movement?

I can tell you. The conservative movement, the Republican party, has never stood for shit. And if you can't stand for something, like "fair taxes", limited government, free trade, well then you will fall for anything, a psycho self absorbed moron the glaring case in point. In my past, I have been a Republican, I have voted for Republican presidential candidates. Never, never again. The only thing the Republican party stands for is "winning", and they will sacrifice their first born child in order to make it happen. Sick.

 

[Toddsterpatriot]

That is not the purpose of the depletion allowance. The purpose is to recoup those companies for their cost of drilling and exploration. Those cost are deductible anyway, but they can use the depletion allowance if it is larger.

They can deduct both.

When you purchase a building, well someone built that building. And in most cases, you are not buying a building so you can take pieces off of it every year and sell them.

You get to depreciate the building, every year.

The fact that I have to explain this to you is indicative of just how far down the rabbit hole the Republican party has sunk.

That's funny.

It is not about raising taxes, it is about "Fair" taxes.

Raising taxes doesn't expand the frontier curve?

Hell, what happened to the "Fair tax" movement within the Republican party?

Some support replacing income taxes with a sales tax. Most don't. So what?

When you give special tax breaks to industries, rather it is fossil fuels or wind power, you distort the economic decision making process.

So because we have a depletion allowance, we're producing too much oil in the US?

 

[Nuthin' Fancy]

We are just exposing biden’s promise to kill domestic oil production

if he had as much authority over private land as he does federal land US oil production would be practically nil

But, Biden doesn't.
So why are republicans blaming Biden for the 10% off all oil company leases?

Because they can.
If a republican robbed a federal reserve bank, they would whine about a democrat robbing a convenience store instead.

 

[Nuthin' Fancy]

Nope, the permits for drilling were cleared,

That's all they need? A permit?

I don't believe you.

That's because you're a RETODD.
WTF do you think " They could be drilling right now, yesterday, last week, last year. They have 9,000 to drill onshore that are already approved." means?

Let alone the private leases they have, 90% of all the leases the oil companies possess.

 

[Nuthin' Fancy]

Federal Onshore and Offshore Oil and Gas Leasing Pause and Review - Harvard Law School

This page tracks the federal oil and gas leasing pause and related litigation. For more on these leasing programs, see our Onshore Leasing Page and Offshore Leasing Page. If you’re a reporter and would like to speak with an expert on this rule, please email us. Quick Take The IRA makes it hard...

eelp.law.harvard.edu

Jan. 20, 2021 DOI issues Secretarial Order No. 3395, announcing that the agency is temporarily suspending its authority to issue any onshore or offshore fossil fuel authorizations, including new lease sales, for 60 days.
Jan. 20, 2021 In Executive Order 13990, President Biden revokes the Trump Executive Order 13783 titled “Promoting Energy Independence and Economic Growth.” EO 13783 directed federal agencies to streamline the oil and gas leasing process and suspend, revise, or rescind regulations that burdened the development of domestic energy resources.
Jan. 27, 2021 President Biden signs Executive Order 14008, which pauses all new federal offshore and onshore oil and gas leasing pending a comprehensive review of the leasing and permitting program. The order also revokes Trump’s EO 13795.
March 15, 2021 The Biden administration asks the Ninth Circuit to dismiss the case reviewing President Obama’s withdrawing certain Arctic and Atlantic coastal areas from oil and gas leasing in light of President Biden revoking President Trump’s EO 13795 (the EO challenged in this case). The Biden administration asks the court to vacate the lower court ruling and remand with instructions to dismiss the case. League of Conservation Voters v. Trump, No. 19-35460 (9th Cir.).
March 24, 2021 Louisiana and twelve other states file a lawsuit challenging President Biden’s pause on new federal oil and gas lease sales arguing that the Outer Continental Shelf Lands Act (OCSLA) and the current 5-year Leasing Program prohibit the moratorium. Louisiana v. Biden, Docket No. 2:21-CV-00778 (W.D. La.).
April 13, 2021 The Ninth Circuit dismisses the appeal of the March 29, 2019 decision by a federal judge to reinstate President Obama’s withdrawals of Arctic and Atlantic areas from oil and gas leasing because President Biden’s Executive Order 13990 revoking Trump’s EO 13795 rendered the appeal moot. League of Conservation Voters v. Trump, No. 19-35460(9th Cir.).
June 15, 2021 A federal judge in the Western District of Louisiana issues a preliminary injunction blocking President Biden’s pause on oil and gas lease sales. The court holds that the leasing moratorium violates statutory authority given to DOI, the Bureau of Land Management, and BOEM under the Outer Continental Shelf Lands Act and the current 5-year leasing program. The judge further holds that the immediate impact of the pause renders the preliminary injunction an appropriate remedy and that the DOI may not continue to pause upcoming Lease Sales 257 or 258. Louisiana v. Biden, Docket No. 2:21-CV-00778 (W.D. La.).
Aug. 9, 2021 Plaintiff states file a motion asking the court to order Lease Sale 257 and asking the federal government to show why its failure to make the sale does not put it in contempt of the preliminary injunction. Louisiana v. Biden, Docket No. 2:21-CV-00778 (W.D. La.).
Aug. 16, 2021 The Biden administration appeals the preliminary injunction that blocked the moratorium on new federal oil and gas leasing. Louisiana v. Biden, Docket No. 2:21-CV-00778 (W.D. La.).
Aug. 24, 2021 DOI announces that it will continue to prepare lease sales during the appeal process.
Aug. 24, 2021 The Department of Justice (DOJ) files a memorandum in response to the plaintiff states’ August 9 motion. DOJ argues that DOI had restarted the leasing program and was therefore complying with the preliminary injunction. DOJ further argues that the preliminary injunction did not require the Lease Sale to occur on any timeline, and the government was therefore entitled to complete a new environmental review. Louisiana v. Biden, Docket No. 2:21-CV-00778 (W.D. La.).
Aug. 31, 2021 Environmental groups file a lawsuit challenging DOI’s decision to hold Lease Sale 257 in the Gulf of Mexico, seeking vacatur and injunction of the sale. The groups argue that the sale of Lease 257 violates the NEPA and the APA and estimate that the sale “will result in the production of up to 1.12 billion barrels and 4.4 trillion cubic feet of fossil fuels over the next 50 years.” Friends of the Earth, et al. v. Haaland, et al., Docket No. 1:21-cv-02317 (D.D.C.).
Sept. 17, 2021 Plaintiff states withdraw their motion to compel Lease Sale 257. Louisiana v. Biden, Docket No. 2:21-CV-00778 (W.D. La.).
Oct. 4, 2021 BOEM publishes a notice in the federal register that it will open and publicly announce bids received for oil and gas leases in the Gulf of Mexico Outercontinental Gas Lease Sale 257 on Nov. 17, 2021.
Oct. 29, 2021 BOEM publishes a draft environmental impact statement (DEIS) for Lease Sale 258, which would offer leasing for oil and gas in Cook Inlet in the Gulf of Alaska. BOEM also announces a 45-day public comment periodon the DEIS.
Nov. 17, 2021 BOEM holds its largest sale ever, the Gulf of Mexico Lease Sale 257 for 308 tracts, covering 1.07 million acres of federal waters in the Gulf. In approving the sale, the DOI claimed it was acting “consistent with a U.S. District Court’s preliminary injunction.” However, environmental groups argue that this sale was not required by the June 15 preliminary injunction. These groups contend that by not conducting a new environmental review like the DOJ memo suggested was allowed, the federal government sped up the lease sale and worked against its decarbonization goals.
Nov. 26, 2021 DOI issues a report reviewing the federal oil and gas leasing process and making recommendations for reform. The report finds, among other things, that the current system does not give taxpayers fair returns and does not fully account for environmental harm, and that the current system encourages speculation by and decreases competition among oil companies. The report outlines recommendations to fix these problems and concludes that DOI is deciding how it will act on these recommendations and encourages Congress to pass reforms to the oil and gas leasing process.
Dec. 3, 2021 Democratic members of the House Committee on Natural Resources file an amicus brief in support of environmental groups challenging the Gulf of Mexico lease sale, arguing that the administration’s environmental review “substantially underestimates” the environmental harms of the lease sale. The brief also argues that the nationwide injunction issued by the District Court for the Western District of Louisiana “in no way excused” DOI’s obligations under NEPA and the APA. Friends of the Earth, et al., v. Haaland, et al., No. 21-cv-02317-RC (D.D.C.).
Jan. 19, 2022 Over 360 environmental groups sent a legal petition to the Biden administrationto reduce oil and gas drilling to 98% lower than current levels by 2035. The petition explains that, without action, it will be difficult for the United States to keep its pledge to keep global temperatures from rising beyond 1.5℃.
Jan. 20, 2022 Over 80 environmental organizations sign and send a letter to the Biden administration, which urges the Department of the Interior to write a new 5-year Offshore Lease Program that bans lease sales starting in 2022. The letter also calls on Secretary Haaland to repudiate Lease Sale 257.
Jan. 27, 2022 The District Court for the District of Columbia blocks Lease Sale 257 in the Gulf of Mexico because the Department of the Interior failed to take a “hard look” at the environmental impact of the project or to account for the effect of overseas fossil fuel use when calculating climate impacts, which violated the National Environmental Policy Act. Friends of the Earth, et al., v. Haaland, et al., No. 21-cv-02317-RC (D.D.C.). For more background on the ruling, see EELP’s overview of the NEPA Review Process or visit our NEPA Tracker Page for the most up to date review requirements.
Feb. 1, 2022 The Department of the Interior mistakenly posted language on its oil and gas webpage that indicated royalty fees for leases would increase to 18.75%. The Department later removed the language, and a spokesperson for the Department said the decision to increase royalty rates was not yet final.
Feb. 8, 2022 Intervenor defendant, the American Petroleum Institute files a notice of appeal with the D.C. Circuit, challenging the D.C District Court’s decision to block Lease Sale 257 in the Gulf of Mexico. Friends of the Earth, et al. v. Haaland, et al., Docket No. 1:21-cv-02317 (D.D.C.).
Feb. 14, 2022 Louisiana, another intervenor defendant, files a notice of appeal in the D.C. Circuit case that blocked Lease Sale 257. Friends of the Earth, et al. v. Haaland, et al., Docket No. 22-05037 (D.C. Cir).
Feb. 14, 2022 The Biden administration asks the 5th Circuit to reverse the Western District of Louisiana’s decision that blocked the Biden administration’s moratorium on new oil and gas drilling on federal lands and waters. Among other issues, the Biden administration argues that Biden’s Executive Order 14008 is both lawful and unreviewable and that the plaintiffs relied on erroneous interpretations of the Outer Continental Shelf Lands Act and the Mineral Leasing Act. Louisiana v. Biden, Docket No. 21-30505 (5th Cir.)
Feb. 18, 2022 Environmental groups file a motion to dismiss for lack of jurisdiction in the D.C. Circuit case that blocked Lease Sale 257. Friends of the Earth, et al. v. Haaland, et al., Docket No. 22-05037 (D.C. Cir).
Feb. 22, 2022 A federal judge in the Western District of Louisiana blocks the Biden administration’s application of an interim social cost of carbon metric., Louisiana v. Biden, No. 21-cv-01074 (W.D. La.). For updates on the metric and this litigation, see our Social Cost of Greenhouse Gases tracker page. In light of this decision, the Biden administration announces that it will delay decisions on new oil and gas drilling on federal lands.
Feb. 28, 2022 The Biden administration announces that it will not appeal the District Court’s decision that canceled Lease Sale 257 in the Gulf of Mexico. Friends of the Earth, et al. v. Haaland, et al., Docket No. 1:21-cv-02317 (D.D.C.).
Mar. 8, 2022 The Court of Appeals for the District of Columbia Circuit denies an emergency motion by American Petroleum Institute to expedite the appeal of the District Court decisionthat canceled Lease Sale 257. Friends of the Earth, et al. v. Haaland, et al., Docket No. 22-05037 (D.C. Cir).

As I stated, republicans whine about the 10%, under the jurisdiction of the federal government, instead of the 90% , they don't.

 

[Mac-7]

But, Biden doesn't.
So why are republicans blaming Biden for the 10% off all oil company leases?

Because they can.
If a republican robbed a federal reserve bank, they would whine about a democrat robbing a convenience store instead.

So biden was lying to the gullible little snowflake?

He is a proven liar

but there are so many ways for government to covertly hamper production

 

[Mac-7]

As I stated, republicans whine about the 10%, under the jurisdiction of the federal government, instead of the 90% , they don't.

If not for private land that democrats dont control most people would be riding the bus to do their grocery shopping

 

[Toddsterpatriot]

WTF do you think " They could be drilling right now, yesterday, last week, last year. They have 9,000 to drill onshore that are already approved." means?

It means that liberals lie.

 

[Winston]

They can deduct both.

When you purchase a building, well someone built that building. And in most cases, you are not buying a building so you can take pieces off of it every year and sell them.

You get to depreciate the building, every year.

The fact that I have to explain this to you is indicative of just how far down the rabbit hole the Republican party has sunk.

That's funny.

It is not about raising taxes, it is about "Fair" taxes.

Raising taxes doesn't expand the frontier curve?
,
Hell, what happened to the "Fair tax" movement within the Republican party?

Some support replacing income taxes with a sales tax. Most don't. So what?

When you give special tax breaks to industries, rather it is fossil fuels or wind power, you distort the economic decision making process.

So because we have a depletion allowance, we're producing too much oil in the US?

They can deduct both.

The hell you say, that makes it even worse. What other industry can you deduct more than the cost of your expenses, of course not considering depreciation. And don't even attempt to make the claim that depletion is the same thing as depreciation because those oil companies get to depreciate their buildings and rigs.

You get to depreciate the building, every year.

Until you have depreciated it to zero, Then you can't depreciate it any more. And if you sell the building after it's value has reached zero, well you have to claim the profits of the sale.

Raising taxes doesn't expand the frontier curve?

It can. I mean I have never understood how you Republicans can be so dimwitted that you don't understand the concept of a curve. I mean it is called the Laffer curve. The fact that Arthur Laffer is still spouting off about cutting taxes and raising revenue even as those tax rates are at historical lows is proof positive that he sold his soul long ago.

But hell yeah, increasing the corporate tax rate would certainly expand the frontier curve. For a couple of reasons. First, decreasing the public debt would free up capital for private investment, I mean you Republicans do still believe that private investment is better, right? Or did that train sail away as well. But second, as almost every economist worth two shits has said for many years now, those low corporate tax rates have resulted, not in investment, but in rent seeking.

https://cepr.net/documents/working-paper-upward-distribution-income-rents.pdf

In no small way, the depletion allowance contributes to rent seeking. Investors purchase oil leases due to the depletion allowance and the effect on taxable income. While higher returns, and therefore the expansion of the frontier curve, could be attained in other endeavors, the special tax treatment of those oil leases encourages the misallocation of resources that I was talking about.

 

[Toddsterpatriot]

They can deduct both.

The hell you say, that makes it even worse. What other industry can you deduct more than the cost of your expenses, of course not considering depreciation. And don't even attempt to make the claim that depletion is the same thing as depreciation because those oil companies get to depreciate their buildings and rigs.

You get to depreciate the building, every year.

Until you have depreciated it to zero, Then you can't depreciate it any more. And if you sell the building after it's value has reached zero, well you have to claim the profits of the sale.

Raising taxes doesn't expand the frontier curve?

It can. I mean I have never understood how you Republicans can be so dimwitted that you don't understand the concept of a curve. I mean it is called the Laffer curve. The fact that Arthur Laffer is still spouting off about cutting taxes and raising revenue even as those tax rates are at historical lows is proof positive that he sold his soul long ago.

But hell yeah, increasing the corporate tax rate would certainly expand the frontier curve. For a couple of reasons. First, decreasing the public debt would free up capital for private investment, I mean you Republicans do still believe that private investment is better, right? Or did that train sail away as well. But second, as almost every economist worth two shits has said for many years now, those low corporate tax rates have resulted, not in investment, but in rent seeking.

https://cepr.net/documents/working-paper-upward-distribution-income-rents.pdf

In no small way, the depletion allowance contributes to rent seeking. Investors purchase oil leases due to the depletion allowance and the effect on taxable income. While higher returns, and therefore the expansion of the frontier curve, could be attained in other endeavors, the special tax treatment of those oil leases encourages the misallocation of resources that I was talking about.

Raising taxes doesn't expand the frontier curve?

It can.

Cool. Show me an example.

I mean it is called the Laffer curve.

You're confused.

But hell yeah, increasing the corporate tax rate would certainly expand the frontier curve. For a couple of reasons. First, decreasing the public debt would free up capital for private investment,

LOL!
I remember when the Clinton administration made a similar stupid claim.

as almost every economist worth two shits has said for many years now, those low corporate tax rates have resulted, not in investment, but in rent seeking.

Rent seeking: the fact or practice of manipulating public policy or economic conditions as a strategy for increasing profits

How does a 21% corporate rate result in more rent seeking than a 35% rate?

 

[Winston]

Raising taxes doesn't expand the frontier curve?

It can.

Cool. Show me an example.

I mean it is called the Laffer curve.

You're confused.

But hell yeah, increasing the corporate tax rate would certainly expand the frontier curve. For a couple of reasons. First, decreasing the public debt would free up capital for private investment,

LOL!
I remember when the Clinton administration made a similar stupid claim.

as almost every economist worth two shits has said for many years now, those low corporate tax rates have resulted, not in investment, but in rent seeking.

Rent seeking: the fact or practice of manipulating public policy or economic conditions as a strategy for increasing profits

How does a 21% corporate rate result in more rent seeking than a 35% rate?

I am going to give you some information in the hopes that you are more than

a brain dead Republican dumbshit. Basically, I am giving you more credit than you deserve. First, the quip about Clinton made a similar stupid claim.

Top Ten Presidents With Best Economic Growth

Economic growth of a nation is one of the best performance indicators of the leader heading it. The same is true for the U.S. as well. Over the past century

www.valuewalk.com

Top ten presidents for economic growth, Roosevelt, Johnson, Kennedy, and then Clinton. Pretty telling, all democrats.

But then, to rent seeking and the corporate tax rate.

http://rcbrnet.com/journals/rcbr/Vol_5_No_1_June_2016/3.pdf

https://media.business-humanrights.org/media/documents/files/documents/Ten_Reasons_Full_Report.pdf

A white paper, and an analysis of the corporate tax rate from an institution that has no ax to grind.

but intuitively, it makes perfect since. The Internal Rate of Return of any acceptable capital expansion is inversely related to the marginal tax rate. That is not an opinion, it is a mathematical reality. And most business evaluate capital investment with a Monte Carlo stimulation of the potential internal rate of return. As the capital tax rate decreases the marginal rate of return for acceptable investments, using the Monte Carlo method, INCREASES. Companies become risk averse, which is why oil companies are not expanding drilling and why all companies are seeking opportunities to gather rents instead of expanding markets. The old take more of the pie that is already there than make more pie. I mean this shit is really simple for anyone with even a minimal amount of economic and financial education. I suggest you take some time to educate yourself. Read that white paper, read that analysis, educate yourself, and maybe take a basic financial accounting course on line to improve your understanding.