Synthaholic
Diamond Member
- Thread starter
- #21
How did you get so fucking stupid? Is it heavy drug use? Is it from being in a cult?There are no subsidies
Some tax breaks such as the oil depletion allowance,
But billions are not given to the oil companies
Explainer: Global fossil fuel subsidies on the rise despite calls for phase-out
UNITED STATES
U.S. fossil fuel subsidies stretch across the U.S. tax code, which makes detailing their costs complex. The IMF estimates they stood at $760 billion in 2022, a figure topped only by China.One U.S. tax break called intangible drilling costs allows producers to deduct a majority of their costs from drilling new oil wells. The Joint Committee on Taxation, a nonpartisan panel of Congress, has estimated that eliminating it could generate $13 billion over a decade.
Another, the percentage depletion tax break which allows independent producers to recover development costs of declining oil gas and coal reserves, could generate about $12.9 billion in revenue over 10 years, it has said.
President Joe Biden, a Democrat, has proposed axing fossil fuel subsidies in his annual budget, largely a political document used in negotiations with Congress.
But his efforts have gone nowhere amid only a thin Democratic majority in the Senate and as Republicans control the House of Representatives.
Fact Sheet | Fossil Fuel Subsidies: A Closer Look at Tax Breaks and Societal Costs (2019)
There is a long history of government intervention in energy markets. Numerous energy subsidies exist in the U.S. tax code to promote or subsidize the production of cheap and abundant fossil energy. Some of these subsidies have been around for a century, and while the United States has enjoyed unparalleled economic growth over the past 100 years—thanks in no small part to cheap energy—in many cases, the circumstances relevant at the time subsidies were implemented no longer exist. Today, the domestic fossil fuel industries (namely, coal, oil and natural gas) are mature and generally highly profitable. Additionally, numerous clean and renewable alternatives exist, which have become increasingly price-competitive with traditional fossil fuels.The 116th Congress is weighing potential policy mechanisms to reduce the impact of climate change and cap global warming to an internationally agreed upon target of no more than 2 degrees Celsius (3.6 degrees Fahrenheit). As a result, fossil fuel tax subsidies, as well as other mechanisms of support, have received additional scrutiny from lawmakers and the public regarding their current suitability, scale and effectiveness. Indeed, the subsidies undermine policy goals of reducing greenhouse gas emissions from fossil fuels.
A recent analysis published in Nature Energy found that continuing current fossil fuel subsidies would make it profitable to extract half of all domestic oil reserves. This could increase U.S. oil production by 17 billion barrels over the next few decades and emit an additional 6 billion tons of carbon dioxide. |