What's the con position on oil & gas taxes? That there are no tax breaks or that we can't call them subsidies?

If you think there is no special treatment of the oil & gas industries, then I suggest you refer to the following sections of the tax code, all of which include special, favorable tax breaks for this industries:

Section 43–enhanced oil recovery credit
Section 45I–Credit for producing oil & gas from marginal wells
Section 48B–Qualifying gasification project credit
Section 907–Special rules in case of foreign oil and gas income
Section 57(a)(2)–Itangible drilling costs treated as tax preference item
Section 543(b)(2)(B)–special exclusion of oil & gas income from foreign personal holding company income.

What are all those special credits and other tax breaks for the oil & gas industry doing there?

And if you think the key point is that these aren’t subsidies–well, so what if they’re not? Call them whatever you want but that won’t change the fact that these are special tax breaks (mostly tax credits) given to one industry, not others.

13 Responses to “What's the con position on oil & gas taxes? That there are no tax breaks or that we can't call them subsidies?”

  1. Paul Ryan senior killer Says:

    In before cons stick their fingers in their ears and say "la la la la la la la la la la"

  2. El Guapo Says:

    Conservatives want to give theses crooks more tax breaks at the expense of the hard working man/women in America.

  3. A Merkan Says:

    I don’t mind giving them tax breaks, because that benefits everyone because they bring in a hell of a lot of money.

  4. John Doe Says:

    Why don’t you complain about the billions of dollars in ethanol subsidies?

    Not on the official talking points sheet today?

  5. Cj Howiker Says:

    Special tax breaks are subsidies. They are tax dollars that they are OBLIGATED to pay but do not pay. Guess who picks up the tab? Everyone else. That is why corporate tax revenues have fallen to only 14% of total tax revenues and individual income tax has risen to 50% of the total tax revenue pie.

    Big oil pays little in taxes yet uses our courts to enforce their contracts, our roads and ports to distribute their product, our schools educate their working force, our military to keep shipping lanes open. They are the biggest welfare queens in the nation.

  6. Cris Ray Says:

    Guess green energy tax credits don’t count even if they are 10 times as much as oil subsidies.Keep them all or get rid or them but do it in a timely manner.

  7. Thedude27 Says:

    So where’s your flat tax proposal?

  8. Stereotypemebecauseyouknow Says:

    ALL Corporate tax rates should be lowered and all subsidies should be eliminated, and that should be the rule for every industry. My Blue State NY hands Billions to connected corporations and some of that money goes to my competitors. I am flabbergasted that Liberals hate corporate welfare and yet support it when Democrats are in charge. What’s the difference?

    High gas prices are driving corporations back to America because of expensive shipping costs. There is no silver bullet, my friend. Price to pay for everything.

  9. How would I know Says:

    Maybe you should read the descriptions you provide…

    "Credit for producing oil & gas from marginal wells"

    We need the energy.. is it so bad to tell companies that we’ll lower their taxes if they keep producing from a well that otherwise would be profitable enough to keep using? And keep in mind that the tax revenue from the sale of that oil/gas is going to more than recover any break given in pumping it.

  10. Obama hood - Spread the Wealth Says:

    I am for ending all subsidies to every industry. Tax breaks basically pick and choose winners and losers in a free market society. For example, besides the oil tax breaks lets end the following:

    – Ethanol subsidies
    – Farm subsidies
    – Energy tax credits for new windows
    – Energy tax credits for new home appliances
    – Cash for clunkers and any related programs similar to these
    – Cash for Hybrid purchases
    – Any Green subsidy

    SADCAT it is funny how liberals just want to go after oil. Let’s end all of the tax breaks for everything. It would make life easier for everyone.

  11. Uncle Sam took My Money Says:

    Your the ones that want fairness in the tax code and thinks it should be used politically.
    Get rid of 100% of all subsidies, tax breaks and write-offs and make everyone happy or mad.

    Why target a 9% margin company. Yahoo profits went up 86% while the oil companies stayed steady.
    Don’t forget that big oil has to invest more money now to make the same percentage return.

    Do you expect your bank to pay you a lower interest rate if you deposit more? No, they pay you more. Big oil is investing more and getting nothing extra.

  12. smitty Says:

    I asked a question about this, and everyone told me it was a good thing that they’re getting tax breaks..now im confused……

  13. Bad Moon Rising Says:

    Well…they certainly are not subsidies, they are called Incentives. If you got rid of most of them it would not impact oil companies in the least.
    section 43 and 451 – if you don’t want the enhanced recovery or need the oil then fine…cancel the credit. It is meant to provide incremental supply of oil and more Industrial and service sector jobs. It is not Integral to oil production that is economic.

    section 48B – Oil companies generally don’t give a crap about coal gasification. That is a government program to develop self sufficiency of resource.

    section 57 (a) Intangible costs are not what you think that they are. They are written off at 100%/ist year because that is when the capital is spent and is usually not recoverable against anidentifiablee asset. In other words, most wells are dry holes with no future return on investment. I don’t know about US tax code, but in Canada, the second and subsequent "productive" wells would be treated as a declining balance similar to tangible equipment. This is neither a subsidy NOR an incentive. It is merely a capital recovery mechanism of sunk costs. If you want to strip oil companies of this then you have to eliminate all expenses as a deduction of gross income. In other words, you wish to tax Capital and not Profits….good luck with that LOL!

    Foreign Production – If you want to tax foreign income of a company, then you have to provide appropriate deductions for expenses in regard to the income. The best thing to do is to eliminate all taxation of foreign derived income and leave that benefit to the country that was exploited. Downside to that however, is of course, you do not get any income from that source so it cannot be taxed! This actually seems to be huge contributor to the perception that "Big Oil" is not paying enough tax. They are paying taxes and Royalties in BOTH countries. They should only be paying them in the foreign country since their income has no bearing on US citizens other than the obvious historic foreign interference and "defence" that US gets criticized for globally! PS…there is no such thing as "an American Company". They are heartless, souless, corporate entities of a transnational nature that have shareholders from around the globe. They do not care one whit about America. They simply operate there!