Subsidies are used for many different industries for Oil as well as farming.
Some oil subsidies are tax deductions and that helps us the consumers because we the consumer pays for those taxes.
Others are Federal Grant Loans.
Oil Gas Tax Provisions Are Not Subsidies For Big Oil - Forbes
The truth is that the oil and gas industry receives the same kinds of tax treatments that every other manufacturing or extractive industry receives in the federal tax code. There is nothing uncommon or out of the mainstream of tax treatments about any of the provisions that have been repeatedly proposed for repeal.
Unfortunately, most media outlets and reporters have chosen to basically repeat the Administration’s mantra that these tax treatments – several of which have been in the tax code for almost a century – are somehow unique, specific to the oil and gas industry, and are “subsidies” for “big oil”. A great example of just how inaccurate this depiction is applies to Percentage Depletion, which has been a feature of the tax code since 1913, meaning it will be a full century old this year.
Big Oil Lobby Claims The Industry Gets No Subsidies Zero Nothing ThinkProgress
Tax deductions are indeed subsidies, as API admitted in a document that labeled “subsidies for alternative fuels” as “preferential tax treatment.” And the oil industry’s $4 billion preferential treatment is written permanently into the tax code. These include:
Percentage depletion allowance: lets companies deduct the costs of an oil or gas well, about 15 percent, from its taxes.
Domestic manufacturing tax deduction: Allows oil companies to collect $1.8 billion each year, even though there are vast differences between oil and traditional U.S. manufacturing. It is a benefit that was never intended for them, according to Sen. Bob Corker, a Tennessee Republican, who said Congress included oil producers “almost inadvertently.”
The foreign tax credit: Oil companies overwhelmingly fall into the category of companies that can claim credits for payments to foreign governments.
Expensing intangible drilling costs: For over a century, oil companies have written off wages, fuel, repairs, and hauling costs.
Change our tax code and theses subsidies go away.
Some oil subsidies are tax deductions and that helps us the consumers because we the consumer pays for those taxes.
Others are Federal Grant Loans.
Oil Gas Tax Provisions Are Not Subsidies For Big Oil - Forbes
The truth is that the oil and gas industry receives the same kinds of tax treatments that every other manufacturing or extractive industry receives in the federal tax code. There is nothing uncommon or out of the mainstream of tax treatments about any of the provisions that have been repeatedly proposed for repeal.
Unfortunately, most media outlets and reporters have chosen to basically repeat the Administration’s mantra that these tax treatments – several of which have been in the tax code for almost a century – are somehow unique, specific to the oil and gas industry, and are “subsidies” for “big oil”. A great example of just how inaccurate this depiction is applies to Percentage Depletion, which has been a feature of the tax code since 1913, meaning it will be a full century old this year.
Big Oil Lobby Claims The Industry Gets No Subsidies Zero Nothing ThinkProgress
Tax deductions are indeed subsidies, as API admitted in a document that labeled “subsidies for alternative fuels” as “preferential tax treatment.” And the oil industry’s $4 billion preferential treatment is written permanently into the tax code. These include:
Percentage depletion allowance: lets companies deduct the costs of an oil or gas well, about 15 percent, from its taxes.
Domestic manufacturing tax deduction: Allows oil companies to collect $1.8 billion each year, even though there are vast differences between oil and traditional U.S. manufacturing. It is a benefit that was never intended for them, according to Sen. Bob Corker, a Tennessee Republican, who said Congress included oil producers “almost inadvertently.”
The foreign tax credit: Oil companies overwhelmingly fall into the category of companies that can claim credits for payments to foreign governments.
Expensing intangible drilling costs: For over a century, oil companies have written off wages, fuel, repairs, and hauling costs.
Change our tax code and theses subsidies go away.
