Oil Company “Subsidies” Clarified (It depends on what the word : "Subsidy" means)

Hotair ^ | 05/03/2011 | Jazz Shaw

[jjotto]

If one doesn’t like it, it’s a “subsidy”. If one likes it, it’s an “investment”.

[org.whodat]

The problem is that the oil companies and other companies, want a 1000% return. Which is BS, let them have skin in the game . Capping depletion and depreciation is not going to kill anyone.

[MrB]

It also depends on if you are an elitist who sees all wealth as collectively owned by society and under the control of the ruling class,

or you are an individualist who sees individuals’ wealth as something earned by the individual and under his own control.

[scooby321]

Domestic manufacturing tax deduction — $1.7 B. This is a tax deduction given to every manufacturer in the US. Per CNN, it was “designed to keep factories in the United States.” If that deduction were eliminated for oil companies only, it would mean singling out oil companies from all other manufacturers.

[VRWCmember]

The problem is that the oil companies and other companies, want a 1000% return.

"Big Oil" companies are getting about a 3% to 4% return on investment and return on sales. That won't attract much more investment from anybody. And you think further reducing that return by capping depletion and depreciation is a good idea?

[Free Vulcan]

I think we need to take the Domestic Manufacturer’s Deduction and expand it to a greater deduction if that energy is refined, and a further deduction if sold in the U.S.

[Cheerio]

Just like class warfare sponsored by the RAT party, no amount of clarification is going to change the minds of the libtards who HATE CAPITALISM. Their messiah in the WH is supposed to be TRANSFORMING America into a European socialist style state.

[Eva]

Like I said before, oil companies and other companies on Obama’s enemy list should start posting profits in two ways, first in Obama dollars and then in BOD, before Obama dollars, just to clarify the situation.

[org.whodat]

Somewhere in all of my desk drawers is a diploma, on it says I are an accountant, My second major. Don’t give me that Razzle Dazzle return on investment BS, I can make it say what I want to within reason.

[Milton Miteybad]

The problem is that the oil companies and other companies, want a 1000% return.

And the oil and gas industry, while it may desire a 1000% return, actually manages to realize 5% to 10%.

Which is BS, let them have skin in the game.

Spoken in the manner of an ill-informed observer who has no concept of dry hole costs.

Capping depletion and depreciation is not going to kill anyone.

Well, nobody who is exploring internationally, anyway, which is all the majors. Such measures will not apply to projects elsewhere in the world. It will, however, serve as a severe disincentive to domestic exploration, the vast majority of which is conducted by independents.

I'm guessing your understanding of the domestic E & P business extends to the certainty that there is a big, black hose running from Saudi Arabia to your gas tank. ;-)

[VRWCmember]

Well if you’ve ever taken an accounting class or a finance class, then you should have realized how igorant your statement about companies wanting a 1000% return was.

[org.whodat]

Wrong, they employ people on k street for the sole purpose of making money, they like rules that prevent completion and crony capitalism is the game. You can not spend the trillions of dollars that the republicans and democraps want to spend and say put it on someone else credit card. And a hyperbole statement is just, what it is, sorry you do not know what one is..

[org.whodat]

Hyperbole :: A figure of speech (a form of irony) in for emphasis or effect; an extravagant statement. Sorry about your shortage of understanding. that is 1000%!!!

[org.whodat]

Hyperbole :: A figure of speech (a form of irony) in for emphasis or effect; an extravagant statement. Sorry about your shortage of understanding. that is 1000%!!!

[VRWCmember]

And a hyperbole statement is just, what it is, sorry you do not know what one is..

So the "let 'em have skin in the game" was also hyperbole? And the part about eliminating their depreciation and other tax deductible expenses was also hyperbole? Was there any part at all of your statement that wasn't hyperbole?

[VRWCmember]

Apparently you and I are not nuanced enough to understand the bigger points that were being made by the use of hyperbole.

[org.whodat]

You have a problem, the 1000% was, the other is dead on. I support the flat tax, you make money, you invest money, you pay taxes. You take from this country you give to this country no free rides.

[VRWCmember]

So you think that oil companies have no skin in the game under the current tax rules? You think that cost recovery of depreciation and similar expenses should not be deducted when calculating taxable income?

[sportutegrl]

Sweetie Pie, the depletion deduction is not an investment. This is not money given from the government to the oil company. It is a deduction because the value of your asset is worth less(depleted). You'd think an accountant such as yourself would realize that.

I own mineral rights to a piece of land that one of the 'big oil' guys is pumping from. Since I am the landowner, I get the deduction. I make about 100/month on my oil lease, and can deduct about 15% of that because my land is worth less with the oil gone. Removing the deduction is a tax increase. How is increasing taxes going to lower gas prices, exactly? Dahlin?