Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (46645)	10/21/2010 1:55:36 PM
From: TimF	Read Replies (1) \| Respond to of 71588

Netted against the cost over eighty years of guaranteeing supply? What costs? Costs of maintaining freedom of the seas? That isn't a subsidy for oil. And special tax code provisions incentivizing exploration and production? Which reduce the take from taxes, but the take is still positive. Such special tax breaks are relevant to the competition between oil and other sources, since they make oil more favorable relative the other sources. But 1 - The other sources often receive larger, even much larger, targeted tax breaks per unit of energy produced. 2 - When only considering the question of the net subsidy of oil, they reduce the "negative subsidy" of taxes, but don't eliminate it. and 3 - The targeted tax breaks are less than the revenue from the special taxes applied on oil and/or its refined products. Re: "But even ordinary corporate taxes probably should be considered for this specific calculation" ABSOLUTELY NOT. Since ordinary corporate taxes apply to ALL they should not be assigned any unusual weight... they factor out. In terms of competition with other sources, they should be treated the same or nearly the same as a direct subsidy. In terms of answering the question about the net subsidy or oil, the flow of money to or form the government, corporate income taxes on oil companies do represent a flow to the government.