Correct. Taxes are on profits, not total revenue. If they have to spend $90 for every $100 in sales, the amount taxed should be $10, just like every other business. It is still an expense.
To penalize the oil/gas industry over other businesses doesn’t make any sense. Just like it doesn’t make sense to selectively subsidize select businesses.
To steal 6 billion over 10 years (600 million a year) from veteran retirements while not touching 46 billion in oil industry tax breaks is to take from those who've shed blood for you and leave untouched those to whom you owe nothing.
The aggravating thing is that the O & G industry is one of the few that actually pays taxes to the federal treasury. Almost none of Barry Soetoro’s corporate cronies (GE, Solyndra, etc.) pay any tax at all.