Myth Busting

[ratherfish]

The tax code does NOT favor big oil, little oil, or ANY oil!

http://www.theblaze.com/wp-content/uplo ... -chart.jpg

[dorminWS]

The graph is not very informative as presented. There seems to be a key article of information omitted. It appears to show "Billions of 2011 Dollars" allocated among various energy sectors with the oil category declining sharply- but what where those dollars spent on/collected for? taxes paid? tax relief? stimulus grants? research and development? campaign contributions? Congressional junkets?

[ratherfish]

"tax subsidies"

You know the nefarious support Obama claims "big oil" is getting but they are not.
I believe they ended in 85 or 86. The "subsidies" that remain are for small companies to write off dry holes...which also, by the way, accounts for the increased production he now takes credit for. It's small companies on private land that have increased production. He's trying to kill those now.

Obama's gasoline increase has now surpassed Carter's.....
Ever think anyone would do anything WORSE than Carter??

[dorminWS]

If the dollars are "subsidies", that raises another question: WHAT THE HELL IS A SUBSIDY? The "stimulus" grants people like Solara got are straight-out subsidies - no argument. Interest-free loans or low-interest loans are a subsidy. But tax breaks are NOT subsidies. Getting to keep your own damned money IS NOT a subsidy. Depreciation and writeoffs are legitimate capital depletion expenses. But even assuming your graph is mixing apples and oranges thusly, it does make a powerful statement about how the Obama administration is misleading the people.

[FiremanBob]

Obama is using the Gigantic Lie strategy here. The truth of the issue is very simple:

When an ordinary manufacturing company buys equipment (above a small threshold) it cannot charge the entire cost of the equipment as an expense to reduce its taxable income in that year. It must put the equipment on its balance sheet and "depreciate" it over a number of years.

When an oil explorer/producer finds oil in a well, it cannot expense the cost of drilling that well. It is required by the government to spread the cost over a number of years using a "depletion" formula that is analogous to depreciation on equipment.

Obama wants to take away the "depletion allowance" that is just like depreciation of equipment. This is not ending a special, favorable treatment of the oil industry. On the contrary, it would be singling this industry out for unusual punitive treatment.

[ratherfish]

B HO is in full tilt chicago campaign mode now.

Everything out of his mouth is a lie...exactly the reverse of his actions.

Carter was inept, B HO is abusive.

[ratherfish]

dormin
I'd assume its an "all the above" though I could find no background. I agree on the tax break thing. Giving back a little of the money taken from you isn't really a gift "subsidy". Unless you're B HO.