Maybe you should talk about the 65 BILLION in special tax creits the oil industry gets every year from the US gov't so they can post record profits every quarter?
I keep hearing about all the tax breaks the oil companies. Can someone spell out exactly what they are, how they apply, and why they are "unfair"? I'm thinking most get some kind of tax benefit for playing by the rules. Why single out any one industry?
I don't know but I assume it is the tax code that lets you depreciate a new tractor in one year does the same for the petro industry. Currently, the oil industry is wildly expanding with new wells and refracking old wells and much of that being allowed under fast depreciation. That and billions of new revenues coming in absorbed by the fast depreciation.
I don't know that to be a fact and I don't know if there is any limitation on depreciation or not. A new well in North dakota will pay for itself in 90 days. Those wells do not need to be pumped in the short term. The average well will need to be pumped in 3 years.
Why single out one industry? Because they make billions and are experts at tax avoidance with 500 plus congressmen being bought off.
Pretty sure what you are referring to is the "Depletion Allowance" which is a depreciation expense allowed as reserves are used. I don't understand many of the details, but I think it would work similar to the fertility depletion that is allowed if you can prove a newly purchased farm has high fertility levels that are being used.
I'm sure someone else can do a much better job of explanation.
Now you got me thinking about this depreciation thing
Do gravel pits, coal mines, fertilizer deposits,, anything that will eventually run out of natural deposit, saleable product get the same tax deductible
What about the water aquifers that are not rechargeable You would think folks should be treated equaly, but I learned a long time that is not our kind of justice,
Equal justice for all, nice concept, but in real life, nothing but a pipe dream
Geepers, I really sound negative today
Must be because I just got back from the in-laws [lol] not true
I am not making a judgement on right or wrong of the depletion allowance, but I always smile when I read about it.
When so much legislation and regulation is based on the scarcety and depletion of fossel fuels, it is hard to deny the expensing of it.
Kind of what I would call an accounting stroke of genius. They are getting to expense something that may or may not be measurable, while congress hopes to tax something that may or may not be measureable