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To: OkiMusashi

A level playing field is what we all need.

Understanding that Ethanol is not the only form of motor fuel subsidized is a step in that direction.


25 posted on 11/11/2010 10:23:22 AM PST by larry hagedon (born and raised and retired in Iowa.)
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To: larry hagedon

I was just pointing out that what some would call an oilpatch subsidy is actually a roundabout State subsidy. More or less: “What the Depletion Allowance giveth, Oklahoma’s Gross Production Tax taketh away.”

The way the math works out; you don’t pay about 5% (or so) of your gross to the Feds (about 1/3 of the 15% Depletion allowance), but the State’s 7% Gross Producion Tax pretty much wipes that out anyway. Net result = the State ends up with your “subsidy” (or most of it).

I didn’t read the “Study”, but I doubt if they bothered to look at the claw-back at the state level. LOL ... They never do.


36 posted on 11/11/2010 8:41:25 PM PST by OkiMusashi (Beware the fury of a patient man. --- John Dryden)
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