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Most of what passes for a "subsidy" in this conversation is writing off normal business expenses, the same way ever business in the country does. https://www.f
by patrick451 4y ago
Most of what passes for a "subsidy" in this conversation is writing off normal business expenses, the same way ever business in the country does.
https://www.forbes.com/sites/davidblackmon/2013/01/02/oil-gas-tax-provisions-are-not-subsidies-for-big-oil/?sh=1299b3b852e8 https://www.forbes.com/sites/davidblackmon/2013/01/02/oil-ga...
- vkou 4y agoBeing able to dump dangerous waste into the environment for free is not 'writing off a normal business expense'.
- patrick451 4y agoYes it is. People write off vehicle mileage or depreciation all the time.
- bumby 4y agoMaybe you can help me understand by adding some details and nuance. The percentage depletion part of the tax code is specific to oil and gas, so it's not quite the same as saying it's what "ever [sic] business in the country does." I agree it's not a subsidy, but it seems like a very specific carve-out for a very specific industry and a specific commodity. It feels to the layperson that it's an odd fact that the percentage depletion can exceed the cost of the well, which makes non-viable wells suddenly viable again. That seems like favoring a specific industry in legislation. A dairy farmer cannot, for example, depreciate "future reserves" of cows milk to make a non-viable farm suddenly profitable, can they? (Understanding that there are true subsidies for farming, that may not be a good analogy).