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Politics : Formerly About Advanced Micro Devices
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To: J_F_Shepard who wrote (612409)5/22/2011 11:45:52 AM
From: i-node2 Recommendations  Read Replies (2) of 1581225
 

At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.

Can you please explain in what way this is a "subsidy"? That a business is allowed to deduct against its income legitimate operating costs?

Can you name ONE OTHER BUSINESS that is not allowed to deduct its legitimate operating costs, including lease expenses? This argument is totally about WHEN the deduction occurs, not IF. The oil companies are going to be entitled to deduct those costs, period -- just as any business is allowed to depreciate its capital expenditures. Because cost recovery is so fundamental to taxation that it cannot ever be curtailed.

The article you cited presents a totally confused and incompetent analysis, culminating in the remark, "According to the most recent study by the Congressional Budget Office, released in 2005, capital investments like oil field leases and drilling equipment are taxed at an effective rate of 9 percent, significantly lower than the overall rate of 25 percent for businesses in general and lower than virtually any other industry."

Can you please explain your understanding of what that sentence means? Because I don't think either you or the author of that article has the foggiest notion of what was meant in the CBO study.

Arguing with you is a total waste of time because you are too f*cking stupid to even discuss these issues intelligently.
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