Credits ? Oh, really ?
Let's take a look at some of that 'complex and intensely boring' tax code ....
“(2) Section 45I.
Credit for producing oil from marginal wells
The actual TITLE of the section in the Code is belied immediately by the 'outline', and the specifics.
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAXES (Credits against Taxes, aka a Deduction directly against the 'tax end' rather than a deduction against the total revenue amount - NOT a true credit.)
....BUT WAIT .... There's more .... but it's extremely boring, technical, and 'beyond the scope'.
an excerpt: (b) Credit Amount.--For purposes of this section--
(1) In general.--The credit amount is--
(A) $3 per barrel of qualified crude oil
production, and
(B) 50 cents per 1,000 cubic feet of qualified
natural gas production.
(2) Reduction as oil and gas prices increase.--
(A) In general.--The $3 and 50 cents amounts under
paragraph (1) shall each be reduced (but not below zero)
by an amount which bears the same ratio to such amount
(determined without regard to this paragraph) as--
(i) the excess (if any) of the applicable
reference price over $15 ($1.67 for qualified
natural gas production), bears to
(ii) $3 ($0.33 for qualified natural gas production).
The applicable reference price for a taxable year is the
reference price of the calendar year preceding the
calendar year in which the taxable year begins.
Laughable at today's costs and prices. At $15.00 per barrel - a good 30-40% of the reserves being produced in the United States today are TOTALLY UNECONOMIC - not even in the ballpark. Ditto on the NatGas Price 'ceiling'.
As Due correctly states, The Devil REALLY IS in the details.
I waded through the first two (since those are not related to 'depletion' - which I have covered in extensive detail over the years, and doesn't really need to be rehashed again) - and can state a few things point blank:
The first two are going to benefit ONLY very small producers - and NOT be of benefit to 'big oil'. No wonder the a-hole at 'Big Oil' was 'in favour' of getting rid of them. The first two effect ME very directly - and I will guaran-damn-tee you that I have NEVER gotten a single penny of 'subsidy' from the Federal Government - it has ALL been money out of MY pocket into the POCKETS OF THE FEDERALES - and the 'credits against taxes' aren't worth a whole hell of a lot on the bottom line - only slightly REDUCING THE TAX BILL - but sure as hell not being a 'flow of extra money out of OTHER taxpayers pockets' into mine.
It is HIGH TIME for the Senators and Representatives from OIL PRODUCING AREAS to start calling BULLSHIT
about 'subsidies' exactly what it is - PURE BULLSHIT.
We hear EXACTLY the same BULLSHIT from tax and spend liberals about the 'mortgage interest deduction' where they have the unmitigated HUTZPAH to label THAT as being a 'subsidy of the housing industry'.
It is NOT a subsidy.
It DOES reduce the amount of money they steal from people - but they are STILL stealing us blind.
As always, the liars figure and the figures lie when it comes to 'government statistics' .... especially when they come from a liberal's mouth.
EOR (end of Rant - and thanks for the muy excellente setup of the high horse podium. *w*)
Ciao, Cheer, and Peace be With Ye ....
~Monkey
Finally, brethren, whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good ...
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