BULLDOG
Diamond Member
- Jun 3, 2014
- 97,298
- 33,175
- 2,250
If oil hadn't received massive tax breaks, it would have never become a viable energy source. Over the past century, the federal government has pumped more than $470 Billion into the oil and gas industry in the form of generous, never ending tax breaks.
There will be subsidies: A brief history of tax breaks for oil companies
basically you are complaining about depreciation in a specific industry. Depreciation is used in other industries as a write off as well. What the depletion allowance did was give it a quantifiable measurement for drilling and well operations.
1926 Congress approves the "depletion allowance," which lets oil producers deduct more than a quarter of their gross revenues. Texas Sen. Tom Connally, who sponsored the break, later admits, "We could have taken a 5 or 10 percent figure, but we grabbed 27.5 percent because we were not only hogs but the odd figure made it appear as though it was scientifically arrived at."
So companies in the business of making money went with an offer to make more money...
Scandalous....
I thought you RWNJs were against giving away federal money for no good reason.
Allowing tax deductions is not giving away money. giving away money is giving away money (i.e. a payout).
Don;t be silly.