Facts are facts. North Dakota's "energy boom" is creating high paying middle class jobs, generating a boat load of taxes and create demand for improved infrastructure.Originally Posted by Havakasha
Define "fair share"? Should they pay more taxes than GE or a solar panel company, or an electric car company?
Still waiting for KING Hava-gafa-kasha to define "fair share", as in the oil and gas industry should pay THEIR fair share of taxes.
So here it is folks.
Big Oil's key deduction that is afforded to all manufacturing companies, is a manufacturing credit to create jobs. How hypocritical of the left to claim to want jobs, but not for big oil.
Here's the truth: http://www.lvrj.com/opinion/big-oil-...129608728.html
Face it folks; THE LEFT LIES. They mislead you. They do pay their "fair share" just like everyone else. Hava-gafa-kasha has a tax accountant to do his tax and find EVERY POSSIBLE DEDUCTION he can get. HYPOCRITE!
Shame on you. SHAME - SHAME - SHAME
Getting back to why the left lies? http://www.merriam-webster.com/dictionary/demagogue
Purposefully lying and misleading.... sad.
I think this is an excellent piece of legislation. "the left lies". Your quite feisty today and quite off base because of your
anger. Rein it in buddy and then maybe you want distort information about Soros etc. Shame, shame, shame. I am laughing
so hard im almost pissing in my pants over your false histrionics.
Menendez, Brown, McCaskill to Big Oil: Your Subsidies Are Over
Senators Announce Legislation to End Tax Subsidies for “Big 5” Oil Companies and Call On Republicans To Join Effort To Close Loopholes
May 10, 2011
WASHINGTON – With the nation’s five largest oil companies taking home nearly $1 trillion in profits over the past decade, a group of Democratic Senators today announced legislation to finally put an end to the unfair tax subsidies that only benefit Big Oil’s bottom line and CEOs. As families are paying more than $4 per gallon in gas prices and doing their part to address the country’s growing deficit, Big Oil needs to step up to the plate and share in the sacrifice to help balance the budget.
U.S. Sens. Robert Menendez (D-NJ), Sherrod Brown (D-Ohio) and Claire McCaskill (D-Mo.), announced the introduction of the Close Big Oil Tax Loopholes Act, which will put an end to taxpayer handouts to the 5 largest oil companies making record profits, and use the billions in savings to help reduce the deficit. The Senators also called on Republicans to support the effort to close the loopholes and join other Republicans, including Speaker Boehner and Representative Ryan, who have voiced support for cutting subsidies.
“At a time when families are feeling the pain at the pump and our deficit keeps growing at an alarming rate, we simply can’t afford to keep giving away billions in taxpayer handouts to oil companies that are doing nothing to help lower prices. The ‘Close Big Oil Tax Loopholes Act’ is based on a simple premise: we need everyone to do their share to lower the deficit, not just working families and the elderly,” Menendez said.
"It's bad enough that Ohioans have to pay more than $4.00 a gallon at the gas pump. They shouldn't need to subsidize the oil industry through the tax code as well. Big Oil is reaping big profits while working- and middle-class Ohioans struggle to make ends meet. It's about time this corporate welfare meet its end," Brown said.
“If we are going to get serious about addressing our national debt, we can no longer afford to keep giving away taxpayer's money to the most profitable companies in the world. There are going to be some tough decisions when it comes to cutting back, but I hope we can agree that our government writing checks to oil and gas companies with tax dollars should be on the chopping block,” McCaskill said.
"For years, the world's biggest oil companies have slipped their way through every loophole in the book to pad their profits at the expense of American taxpayers," Tester said. "This bill restores fairness and holds these corporations accountable to taxpayers, who deserve no less."
According to a recent report from Citizens for Tax Justice, Big Oil companies spent most of their profits in the purchase of their own stocks and boosting its dividends between 2005-2010. In 2010, four of the largest “Big Five” oil companies (excluding BP due to the oil spill) allocated only 18 percent of their post tax profits on exploration and 60 percent on dividends and stock repurchases. Link to the full Report: http://www.ctj.org/pdf/energy20110429.pdf
Summary of the bill:
Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.
U.S. taxpayers are taxed on their income worldwide, but are entitled to a dollar-for-dollar tax credit for any income taxes paid to a foreign government. U.S. oil and gas companies have been accused of disguising royalty payments to foreign governments as foreign taxes. This allows them to lower their taxes in the U.S. The bill would close this loophole that amounts to a U.S. subsidy for foreign oil production for the Big 5.
Limitation on deduction for income attributable to the production of oil, natural gas, or primary products thereof.
In 2004 Congress enacted Section 199, the domestic manufacturing tax deduction. In 2008 Congress froze the Section 199 deduction at 6% for all oil and gas activity. The bill eliminates the Section 199 deduction for the Big 5.
Limitation on deduction for intangible drilling and development costs.
Would deny the Big 5 oil companies the option of expensing Intangible Drilling Costs (IDCs) and require such costs be capitalized. IDCs are expenditures such as wages, fuel, repairs, hauling, and supplies necessary for the drilling of oil wells. Currently, integrated oil companies can expense 70% of the cost of IDCs. The bill requires the Big 5 to capitalize all of its IDC costs.
Limitation on percentage depletion allowance for oil and gas wells.
Firms that extract oil and gas are permitted a deduction to recover their capital investment under one of two methods. Cost depletion allows for the recovery of the actual capital investment—the costs of discovering, purchasing, and developing the well—over the period the well produces income. Under this method, the taxpayer’s total deductions cannot exceed its original investment.
Percentage depletion allows the cost recovery to be computed using a percentage of the revenue from the sale of the oil or gas. Under this method, total deductions could (and often do) exceed the taxpayer’s capital investment. The bill repeals percentage depletion for the Big 5.
Limitation on deduction for tertiary injectants.
Tertiary injectants are used in enhanced oil recovery to drive more oil from an existing well. Currently, oil companies are allowed to deduct the cost of tertiary injectants rather than capitalizing their costs and recovering them over time. The bill requires the Big 5 to capitalize the cost of tertiary injectants it uses during the year and recover those costs over time.
Repeal of Outer Continental Shelf deep water and deep gas royalty relief
Repeals Sections 344 and 345 of the Energy Policy Act of 2005. Section 344 extended existing deep gas incentives and Section 345 provided additional mandatory royalty relief for certain deepwater oil and gas production. These changes will help ensure that Americans receive fair value for Federally-owned fossil fuel resources.
Deficit Reduction
All savings realized as the result of the bill’s elimination of the tax breaks and other subsidies currently going to the major integrated oil companies are devoted to deficit reduction.
###
"Big oil has obviously received more help than most. I thought you might be able to acknowledge tthere is a connection between the sums of money contributed by various industries to politicians and the benefits they derive from that money. Follow the money and you will see that big oil has disproportionately been helped through tax policy."
That is a BALD FACED LIE! The playing field is LEVEL. Anyone who manufactures anything can take the deduction.
Read on if you dare: http://www.journalofaccountancy.com/...p/20102727.htm
And how "fair" is it that BIG OIL is ALREADY penalized 3%??
Read on if you dare: http://www.api.org/policy/tax/apikey...Tax_Sec199.pdf
And one last one, if you dare: http://www.mikestopa.com/2011/02/oil...199-deduction/
DON'T READ THEM! You may awaken from your ignorant bliss. But if you dare, the last one is good.
"...a group of Democratic Senators today announced legislation to finally put an end to the unfair tax subsidies that only benefit Big Oil’s bottom line and CEOs. As families are paying more than $4 per gallon in gas prices and doing their part to address the country’s growing deficit, Big Oil needs to step up to the plate and share in the sacrifice to help balance the budget."
LIES, LIES, LIES.............
Read the links above, and you will get a clear understanding about corporate tax deductions the left call "big oil subsidies" to mislead and anger the public (that's called demogoguery BTW).
Big Oil is "winning" so the left demonizes them. SHAME. SHAME playing on people's emotions and fears to create anger to win votes. And Havakasha is proud of that..........
The truth is that the 2004 legislation that allows the manufacturing deduction was signed into law by Bush; hence a target for the left. It's all politics, and has nothing to do with common sense, jobs or anything remotely valuable. It's politics.
Tax neutrality should be the goal: a tax system that encourages the private investment on its own merit, not for tax reasons. Tax neutrality would broaden the tax base and allow the government to lower income tax rates on individuals and corporations.
ConocoPhillips (COP) CEO James Mulva was right when he said the Senate proposal to rescind tax breaks on only five select companies was “un-American.” (It was equally un-American to enact them.) Exxon Mobil chief Rex Tillerson called it “discriminatory” and “punitive.”
“Everything for everybody everywhere ought to be on the table,” Tillerson told the Senate Finance Committee last week.
To her credit, Republican Senator Olympia Snowe of Maine said all subsidies and tax incentives, many of which are on “cruise control,” should be re-examined.
The last time Congress took a stab at reducing corporate welfare was in 1986.
End Big Oil's tax breaks now
By Dan Primack May 26, 2011: 5:00 AM ET
It's time to truly level the playing field and give all forms of energy a chance to compete.
To hear some tell it, we have lost our collective appreciation for free markets. So writes CNBC anchor Joe Kernan in his new book about "defending our kids from the liberal assault on capitalism." Or former BB&T CEO John Allison, who offers $2 million grants to colleges that create "courses in capitalism." And I agree. Specifically, we've forgotten one of capitalism's most fundamental promises: New companies deserve the opportunity to succeed.
That's why I assume Joe, John, and their Randian peers must be furious with Senate Republicans for recently defeating a Democratic proposal to end billions of dollars in tax breaks for American oil companies.
The D.C. debate over fossil fuel handouts was, of course, framed within a short-term political prism. Democrats hoped to blunt criticism that they don't care about deficits, while Republicans wanted to rally their tax-phobic base. But ending oil and gas subsidies should be about something much larger: creating a marketplace in which renewable-energy companies can compete fairly with fossil-fuel incumbents. For too long we've heard petroleum advocates say that solar, wind, and biofuel are failed experiments. They've had their chance, but have been unable to demonstrate cost-effectiveness.
What this ignores, of course, is that American oil and gas companies have had a century of built-in advantages. For example, they are allowed to deduct "intangible drilling costs" -- including labor and drilling fluids -- the moment a well is tapped (even if it proves to be dry). And then there's the "depletion allowance," which allows certain extractors to shelter around 15% of a well's production from the IRS. And deductions for royalties paid to foreign governments. And the oil and gas liability cap that remains at just $75 million, more than a year after the BP (BP) rig explosion. Then there's Section 199, which allows profitable oil and gas companies to deduct 6% of net income.
To be sure, there also are tax breaks for green-energy companies. But most of those handouts are temporary -- including low-interest loans from the 2009 stimulus -- with renewables receiving only around 5% of some $20 billion worth of federal energy tax breaks (excluding subsidy-rich ethanol, which is a separate but equal tax tragedy). Some of these subsidies are very important to individual companies, but the renewable-energy industry's best long-term play is to support the elimination of all federal energy handouts. "If the playing field is truly leveled by a good-faith proposal to eliminate all subsidies for fossil fuels and renewables, I am very confident that renewables will compete effectively," says Josh Green, a venture capitalist focused on the clean-tech market.
Solar-energy-generation costs, for example, fall around 8% each year as technologies improve and capacity expands. U.S. Energy Secretary Steven Chu recently said that he could see solar and wind "being cost competitive without subsidy with new fossil fuel" by the end of this decade. Imagine how must faster the gap could close if the competition wasn't on government-prescribed steroids.
The oil industry counters by claiming that the elimination, or even reduction, of its federal largesse will cost both production and jobs. Hogwash. U.S. oil companies drill domestically for one reason: Their product can be found here. And that will continue as long as there is local supply and global demand. If U.S. crude oil production was tied directly to taxes, then it should have grown between 1999 and 2007, when federal subsidies doubled. Instead, it actually fell 14%.
What oil companies truly fear, I think, is unshackled innovation -- and even a modest loss of market share. Rather than trying to outsmart the upstarts, the oil companies spend their time trying to scare us into codifying their supremacy. ConocoPhillips (COP) CEO James Mulva recently said that a Senate proposal to end $4 billion of oil subsidies was "un-American." No, Mr. Mulva, it's pro-capitalism.
Posted in: cleantech, energy, oil
"U.S. Sens. Robert Menendez (D-NJ), Sherrod Brown (D-Ohio) and Claire McCaskill (D-Mo.), announced the introduction of the Close Big Oil Tax Loopholes Act, which will put an end to taxpayer handouts to the 5 largest oil companies making record profits, and use the billions in savings to help reduce the deficit. The Senators also called on Republicans to support the effort to close the loopholes and join other Republicans, including Speaker Boehner and Representative Ryan, who have voiced support for cutting subsidies."
More demogoguery here, but the point here is the heavyhandedness of the federal government. Yeap, if you make a decent profit, look out.......... Uncle Sam will want some. No need for a balanced budget. No need for cutting spending.
Didn't Chavez in Venezuala "nationalize" oil and gas? Makes one think, no?
With all his posting, he certainly cannot be reading the links. A real man of character. Don't read what you don't want to hear lol. Priceless.
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