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To: thackney; newgeezer
The depletion allowance is taken by the owner of the mineral rights or royalty. It's a direct tax preference for oil or gas production.

The Foreign Tax Credit allows integrated oil companies to shift earnings back and forth between their domestic and off shore operations. Your comparison confuses a state tax deduction with a foreign tax credit.

In every other business, development costs must be capitalized, not deducted. Again, a direct tax subsidy.

Tax credits which are received by one competitor , but not by another were claimed by you to be a subsidy. Why is this not true when the recipient is an oil company?

174 posted on 05/01/2006 11:01:54 AM PDT by Mr. Lucky
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To: Mr. Lucky
Why is this not true when the recipient is an oil company?

I've made no such claim. ANY tax break is a subsidy.

176 posted on 05/01/2006 11:10:15 AM PDT by thackney (life is fragile, handle with prayer)
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