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Re: Rep. Katie Porter Excoriates Oil Executive: ‘Don’t Patronize Me’ 

By: Cactus Flower in ALEA | Recommend this post (1)
Wed, 10 Mar 21 3:01 PM | 16 view(s)
Boardmark this board | The Trust Matrix 		Msg. 41237 of 54959
(This msg. is a reply to 41234 by clo)
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When she says "entire profit stream" does she mean "entire income stream"? ... asking for a friend!!! ;-)

I hate to say it, but the way I read it, I think they are talking at cross purposes. She's talking about the amortisation of intangible assets. He's talking about intangible annual operating costs of some undefined sort.

As regards depreciation/amortisation rules, I don't know US corporation tax law very well, but he might say that many industries have their own ones and so the oil and gas industry is no different from them. For instance, I think the real estate industry has special rules. People who invest heavily upfront want/need tax breaks so that they aren't out-of-pocket for years while working on long term projects.

I don't think that's unreasonable or unusual.

So I don't think he was being inaccurate or patronising. It sounds to me like she's spoiling for a fight because she doesn't like the industry he works in. I get it. But at the moment, it's not against the law to operate that industry and it's up to congress if it wishes to pass a law to make it so.

[I don't like them too much either, but that doesn't mean I think his answer is patronising]

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The above is a reply to the following message:
Rep. Katie Porter Excoriates Oil Executive: ‘Don’t Patronize Me’
By: clo in ALEA
Wed, 10 Mar 21 2:35 PM 		Msg. 41234 of 54959

She is sooo good!

Rep. Katie Porter Excoriates Oil Executive: ‘Don’t Patronize Me’

Rep. Katie Porter (D-CA) excoriated an oil company’s executive during a congressional hearing Tuesday after he suggested she did not understand a tax break under discussion. Speaking to Mark Murphy, president of Strata Production company, the chair of House Natural Resources Oversight Committee said, “How much of those intangible drilling costs do you get to deduct right away from your taxes?” Murphy responded, “We get to deduct all of those just like any other business. There seems to be a misconception out there that you’re operating from that somehow the oil and gas industry benefits from some special sort of tax structure. We don’t.”

To which Porter replied, “You do benefit from special rules.

There’s a special tax rule for intangible drilling costs that does not apply to other kinds of expenses that businesses have. You get to deduct 70 percent of your costs immediately, and other businesses have to amortize their expenses over their entire profit stream, so please don’t patronize me by telling me that the oil and gas industry doesn’t have any special tax provisions. Because if you would like that to be the rule, I would be happy to have Congress deliver.” Porter, a former attorney and law professor, has made a name for herself for taking corporate executives and government officials to task during congressional hearings.

http://www.thedailybeast.com/rep-katie-porter-excoriates-oil-executive-dont-patronize-me?via=newsletter&source=CSAMedition

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