- Jan 23, 2014
- Reaction score
- Central Ohio
Numerous? Not so much. There are a few, that specifically relate to fossil energy, but not 'numerous'.Fossil fuel fortunes have come into existence through subsidies and other forms of government intervention in "free markets." The sooner gas, coal, and oil are taxed into extinction, the better, imho:So how much do you suppose you'll be paying for gasoline, natural gas, or propane for your home with a fossil fuel tax? Providers pass down all their costs to us.
Fact Sheet: Fossil Fuel Subsidies: A Closer Look at Tax Breaks and Societal Costs - OurEnergyPolicy
"There is a long history of government intervention in energy markets. Numerous energy subsidies exist in the U.S. tax code to promote or subsidize the production of cheap and abundant fossil energy.
"Some of these subsidies have been around for a century, and while the United States has enjoyed unparalleled economic growth over the past 100 years—thanks in no small part to cheap energy—in many cases, the circumstances relevant at the time subsidies were implemented no longer exist.
"Today, the domestic fossil fuel industries (namely, coal, oil and natural gas) are mature and generally highly profitable.
"Additionally, numerous clean and renewable alternatives exist, which have become increasingly price-competitive with traditional fossil fuels."
And even then, they are not subsidies, as much as they are tax deductions.
A subsidy is when you actually take money from one person, and give it to another, to "subsidize" their operation.
A tax deduction is not a subsidy, because if it is... then everyone in the entire country is subsidized. I used a tax deduction, and I wager so did you, and so did everyone else. So are *YOU* subsidized by the US government? If you are, then how can you complain when others are as well?
A real Subsidy is like Amtrak. Amtrak is an actual subsidy. And by the way, an excellent example of why we don't want government running anything else.
During its more than 40-year tenure, the rail service has received over $45 billion in taxpayer dollars. Yet Amtrak has run operating losses every year since its inception in 1971. For over a decade, 41 of its 44 routes have remained unprofitable. In 2014 alone, its loses totaled roughly $1.1 billion.
Amtrak's lack of revenue should come as no surprise since its leaders have conceded as much. "Amtrak will never be profitable," its then president David Gunn told Congress in 2002.
Gunn's perspective explains why the train's operators have no incentive to cut down costs: They expect to get more funding regardless of the quality of service they provide, including a record of tardy train arrivals.
As a result, Amtrak spends money it doesn't have on services riders don't need.
To take one of many examples, from 2003 to 2013 Amtrak lost more than $900 million on food services alone. As U.S. Rep. John Mica, R-Fla., reported in a congressional hearing in 2012, Amtrak charged $9 for a cheeseburger. But it cost Amtrak $16 to make the burger. In effect, taxpayers subsidized $7 of each passenger's cheeseburger.
^^^^ That is a subsidy. *YOU* are paying taxes to the government, so that the Amtrak CEO who makes $340,000 a year, can serve a $16 Burger for $9, on a railroad that has consistently lost money since 1971.
And better still, if not ironic... most of the primary riders of Amtrak are the wealthy. So the 99% are paying for a luxury of the wealthy, and people on the left-wing support it.
But back to the 'subsidies' of fossil fuels...
Intangible Drilling Costs Deduction
All businesses have depletion and cost deductions. If I invest $200,000 into a store renovation, I can use that as a deduction.
Credit for Clean Coal Investment
This I don't see a problem. You want to lower CO2 emissions, right? Isn't that the entire complaint about fossil fuels? Well those investments to retrofit coal power plants into gasification plants, dramatically reduces the out put of emissions.
Nonconventional Fuels Tax Credit
This was a direct credit for domestic energy production.
Adding all those things together, would be roughly $40 Billion over 10 years.
Is that a lot in your world? All the tax credits and deductions across all fossil fuel companies, was a whooping $40 Billion over 10 years.
The coal industry alone is worth $28 Billion per year. And that's after years of decline. And you are telling me "Fossil fuel fortunes have come into existence through subsidies"??
Really? You think that without that little $40 Billion over 10 years, that the Coal industry that is worth $28 Billion a year, wouldn't exist?
Now if you want to eliminate all tax deductions, that's fine. That wouldn't bother me so much, but you need to remember this.....
Every dollar that a company has, either came from paying workers less, or charging customers more.
Every dollar you demand a company pays to government, is a dollar you will have to pay the company, or get paid less at your work.
There is no magic money that companies have to pay taxes with, instead of charging you the customer more, or paying you the employee less.
This is why people are paid less money in wages and higher prices for products, for the same job and products we have, in Europe. All over Europe, people are paid less money, than how much we are paid here in the US for the exact same identical job. Why? Because when you levy taxes on business to pay for all your government stuff.... that has to come from somewhere. It comes from paying the employees less, and charging the customers more.