Skip to comments.Oil-Industry Breaks May Be Casualty of Fiscal Cliff Bargain(1 more reason for blue states to secede)
Posted on 11/13/2012 1:00:46 PM PST by bestintxas
House Speaker John Boehner, R-Ohio, may be open to eliminating certain oil-industry tax breaks to prevent the necessity of tax increases.
Republicans have started examining the tax code in their effort to raise revenues without actually raising rates, and breaks for many of the largest companies in the country could be on the chopping block, reported The Hill.
The details will have to be negotiated. Not going to speculate on what a final package may look like, said Kevin Smith, a spokesman for Boehner.
Oil companies receive about $4.4 billion in tax breaks every year, according to USA Today. Democrats and the White House have put forth several proposals in the last year that would eliminate breaks and bring the federal government between $24 billion and $44 billion over the next decade.
Republicans, as well as Democrats in oil-rich states, have shot down most of those efforts on behalf companies in their districts.
Companies currently can write off the cost of domestic drilling and depletion allowances which allow oil to be considered equipment. Many also receive tax incentives for exploration and development of wells.
President Barack Obama and members of congress have discussed eliminating tens of billio
(Excerpt) Read more at newsmax.com ...
Anybody old enough to recalls Eddie Chiles of the Western Company remembers him saying ""I'm Eddie Chiles, and I'm mad as hell" in his purchased spot commercials that were against the intrusive government.
If Boehner goes down this path, he is doing what Obama has done: condemning successful companies and stifling jobs.
The oil industry has many thousands of jobs awaiting the bureaucracy to get out of the way, and can greatly increase tax revenues to states and federal govt. This will certainly keep us in a recession.
Well, this will certainly help to bring down gas prices.
I think these clowns need a wake up call. OK, you can reduce or eliminate our depletion allowances, we just will stop sending gas to the north east. Let’s see who lasts longer.
REALLY? THIS WILL BRING DOWN PRICES? Do you remember Chu saying we must get gas prices as high here as they are in Europe.......
B) You've got your red & blue states mixed up.
OK, fine. At the very least then I would hope that Boner insists that ALL energy subsidies be eliminated. That means no more gravy train for those worthless renewables. Then we’ll see how they compete on a level playing field.
and the ethanol subsidy, wind subsidy and solar subsidy need to go also.
and what about sugar, mohair, milk, etc, etc - they need to go also.
If so does anyone garner what a shift that is especially from an accounting standpoint?
That almost requires rewriting what we know about accounting!
No more depletion? Ok, when does that do for Bauxite, Gold etc? Are they next?
This is an environmentalist wet dream, why drill or dig for anything, no one will. Fundamental Transformation almost complete...
How about removing the (average) 50 cent per gallon taxes on gasoline? (That’s federal and state taxes added together).
Plus - why not do away with the dumbass EPA blends?
And get rid of ethanol. It’s not a fuel. Any fuel that needs either mandate or subsidy is not a fuel!
Thanks for the B comment.
BTW, I am color-blind.
“Oil companies receive about $4.4 billion in tax breaks every year, according to USA Today.”
So how will this do much for our problem, and how would you eliminate tens of billions in tax breaks if there are only 4.4B in breaks?
“President Barack Obama and members of congress have discussed eliminating tens of billions of dollars in breaks for the industry. “
I thought at least Republicans were aware of this simple truism.
In other news, gas prices spike still further.
Stop the ethanol subsidies.....and putting th cra* in my car.
Wait, I know;
he'll continue denying new leases, keep Keystone from happening, and then start earning those big bucks he thinks he can tax out of the oil coming out of private / state land.
I’ve got a far better idea on how to handle this.
It’s rather extreme though, and I don’t think anyone in DC has ever thought of it before.
Why not just CUT THE DAMN SPENDING!
Check out this recent article that has a perspective on amount of dollars the oil companies contribute to the government. http://www.exxonmobilperspectives.com/2012/03/15/who-is-subsidizing-whom/?utm_source=paid.outbrain.com&utm_medium=cpc&utm_campaign=Perspectives_-_Oil_and_Gas_Tax_Policy
Obama intends to stop all fracking in the states.
Obamas Post-Reelection EPA Plans
Posted: November 4, 2012
If you think the Obama administrations Enterprise Prevention Agenda has been wildly aggressive during the past four years, believe me, we really aint seen nothin yet. A new report released by the U.S. Senate Committee on Environment and Public Works Minority Committee enumerates a slew of planned EPA regulations that have been delayed or punted on until after the election that will destroy millions of American jobs and cause energy prices to skyrocket even more.
Titled A Look Ahead to EPA Regulations for 2013: Numerous Obama EPA Rules Placed on Hold Until After the Election Spell Doom For Jobs and Economic Growth, it lists and describes new rules concocted over the past year ranging from additional restrictions on greenhouse gas emissions, tougher water guidelines and tightening of the ozone standard. Taken together, they will further drive up pump prices, impose construction bans on local communities, and cripple oil, natural gas and coal production.
As the Washington Post notes, the report puts a spotlight back on the Obama EPA which has earned a reputation for Abuse, serving as a stark reminder that President Obama has presided over a green team administration that works every day to crucify oil and gas companies and make sure that if you want to build a coal plant you got a big problem.
Liberals talk of tax credits as being subsidies. Any time a person or business keeps more of what they earn, it “costs” the government, because to them, everything belongs to the state.
Oil companies already pay exorbitant taxes. I believe about 40% of the price of a gallon of gas consists of fed, state, and local taxes.
Whenever politicians start talking about raising taxes, why doesn’t anyone ask them why anyone should pay a dime more in taxes when so much of our money is lost to waste and fraud? Do we really need to keep sending GSA workers on lavish vacations?