Mr. H.
Diamond Member
- Thread starter
- #41
Sure.
A domestic manufacturing tax deduction worth 1.73B
Acceleratated depreciation schedules worth 4B
Tax credit for production of nonconventional fuels (i.e. shale etc...) worth about 2B
Royalties and mineral rights subsidies worth 1-3B
...I could go on...
With very few exceptions, these "subsidies" are no different than those available to other industries.
No, that is wrong. Other industries can not access the domestic manufacturing tax deduction, the accelerated depreciation schedules carved out for oil companies, or the royalties subsidy from use of public lands and public goods.
Because the government singled it out for special benefits and subsidies that other firms don't get.
It's less profitable than other sectors of the economy.
In dollar value, there is no sector more profitable.
And w/re: to the unique tax treatments that do benefit oil and gas, the returns to the government more than offset the preferences. Investment, economic activity, jobs, and increased production.
...ah yes. and here we have it folks - the so-called party of free markets diligently protecting anti-free market policies that help fund the party's leadership.
The Manufacturing Tax Deduction was enacted in 2004. All US manufacturers benefitted from the deduction until 2008 -when the oil and natural gas industry was restricted to a six percent deduction while other manufacturers' deductions grew to 9%.
By "accelerated depreciation" you are probably referring to the expensing of intangible drilling costs- costs associated with a project that are not used to purchase physical goods- a part of the Tax Code since 1913.
"Dollar value" as a measure of profit? Oh come on now.
When subsidies/entitlements/tax preferences are totally eliminated across the board then maybe you can start your own thread on free market policies.
With respect to Obama's targeting of the oil and gas industry... I repeat that it was the wrong message, it's the wrong policy, and there is plenty more money out there in other industries.