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Oil Company Tax Breaks

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into_the_fire On September 11, 2012




,
#16New Post! Aug 12, 2011 @ 23:25:36
@El_Tino Said

Why do oil companies get special tax treatment?

And don't say that without it they will raise prices. Why is it the job of other taxpayers to pay more so that oil companies can get a tax break? If that leads to higher prices at the pump, so be it. I can choose how much I want to drive and what kind of car I choose to drive. I can't choose to not pay income tax.



Oil companies don't receive any "special tax treatment" that other companies don't also receive.
shinobinoz On May 28, 2017
Stnd w Standing Rock





Wichita, Kansas
#17New Post! Aug 12, 2011 @ 23:28:27
@ThePainefulTruth Said

Repeat after me, "Tax cuts on oil do nothing but reduce the price of oil for the consumer." If you need to reboot, send an email to someone who gives a s***.



@El_Tino Said

Repeat after me: "Tax cuts on oil companies do nothing but increase the taxes everyone else has to pay".


Correct Tino.
I've noticed that TPT is good at throwing out the lies of the right hoping apparently that like the faithful sheeple of FAUX NOISE viewers they will swallow the fib hook line & sinker & NEVER have their simple minds changed when the truth comes out.
But I will try:
Gasoline prices are a function of world oil prices and refining margins. The oil companies are quick to point out that they are not to blame for oil prices because the price is set in the world market, or which they are a small share. That is all true. But one implication of that is that the incremental change in production that might result from changing oil subsidies will have no impact on world oil prices, and therefore no impact on gasoline prices.
Severin Borenstein, co-director of U.C. Berkeley's Center for the Study of Energy Markets

In the long run, the removal of the tax deduction is unlikely to have any effect on consumer prices for oil and gas. Oil prices are more than three times higher than they were when the tax deduction was implemented in 2004 - and those high prices are an incentive for investors to continue to invest in oil and gas companies. Although natural gas prices are not significantly different from their 2005 levels, natural gas prices rose significantly over the last decade and those higher prices also provide good incentives for investors. [Joint Economic Committee, 12/18/07, in-text citations deleted for clarity]

The market price of crude oil and natural gas, or even of refined petroleum products, such as gasoline, would not be expected to increase very much, if at all, by such a change in the short run. In general, also, the income tax increases are not expected to have real output effects in the short run, although they could cause resources to flow to other industries in the long run as long as these other industries are allowed the manufacturing deduction, which is equivalent to a lower marginal tax rate. [Congressional Research Service, "Oil Industry Financial Performance and the Windfall Profits Tax," 9/30/08]
https://mediamatters.org/research/201104280037
shinobinoz On May 28, 2017
Stnd w Standing Rock





Wichita, Kansas
#18New Post! Aug 12, 2011 @ 23:28:50
@into_the_fire Said

Oil companies don't receive any "special tax treatment" that other companies don't also receive.


Some do, some don't!
drman321 On December 28, 2013




, Florida
#19New Post! Aug 12, 2011 @ 23:29:49
@ThePainefulTruth Said

But it isn't arguable that all corporate taxes are paid by the consumer....ALL. Exxon Mobile for example, only has a 4-9% net profit, and that remains the same whether you add corporate taxes or not. They necessarily include it in their overhead.



I'm sorry but that just isn't true except for a bare number of businesses who happen to run on razor thin margins with little to no competition.

It most definitely isn't true of oil companies Exxon Mobile included. They cannot bake a tax price into the cost of their product. They don't set the cost of their product in that industry. It is too competitive for one company or even a subset of companies to set the price. Only a large conglomeration, in this case OPEC has the ability to set the price and they don't care one whit about what US taxes are.

I'm afraid you are going to have to come up with another premise as this one does not pass the common sense test. It is nothing more than right wing propaganda. Poorly thought out propaganda at that. You are better than that.
El_Tino On October 12, 2023
booyaka!





Albuquerque, New Mexico
#20New Post! Aug 13, 2011 @ 07:39:34
@into_the_fire Said

Oil companies don't receive any "special tax treatment" that other companies don't also receive.


The energy and mining industries get special treatment that other industries don't get. And there are tax breaks that really only apply to oil, gas and geothermal, the "intangible drilling costs" deduction https://www.irs.gov/publications/p535/ch07.html#en_US_2010_publink1000208883
WASH On June 04, 2012




LINCOLN, California
#21New Post! Aug 16, 2011 @ 17:44:40
@ThePainefulTruth Said

You say that, and then in 2 sentences proceed to explain how that would (must) happen.




I'm going to assume, for the sake of argument, that they do get a tax break. I've never looked into it. But it isn't arguable that all corporate taxes are paid by the consumer....ALL. Exxon Mobile for example, only has a 4-9% net profit, and that remains the same whether you add corporate taxes or not. They necessarily include it in their overhead.

You say we choose how much we want to drive. That's only true up to a point. Our cities, other than New York City, were built out for the most part, not up. Getting to work and getting groceries, at a minimum, requires a car for almost everybody. This is above and beyond the freedom our vehicles and the highways represent, and the stimulation to the economy exercising that freedom brings about.

I doubt that whatever the tax break to the oil companies works out to be at the pump, it isn't as much as is added per gallon by the federal gasoline tax. If they were serious about helping the economy in this area (and it would), then repeal that tax in addition to not levying the oil tax on the oil companies.


Right on! See below Letter to then President Carter
Jimmy Carter Wash Kostinko
April 5, 1979
dear Sir
I again suggest you replace your advisors. Your televised speech (4-5-79) confirmed it. Your request for all citizens to contact their congressmen to give you authority to tax oil company "windfall profits" is analogous to the late Iranian elections where the "people" voted for an Islamic government. Do we still have a choice? If so, let me itemize a list.
1, Remove all taxes on businesses - tax incomes!
2, Require all oil companies to keep their profits in energy field investments. If they invest in non-energy fields, their profit will be taxed as income. remember our railroads.
3, Do not lease promising oil bearing acreage for oil exploration. Negotiate for a percentage of the oil found. We can use it to stabilize oil prices.
4, When oil companies (or other businesses) are found guilty of defrauding the public, they should not be fined. The company officers who perpetrated the act should be fined and jailed. --- A corporation, unlike a human, cannot be punished.
ThePainefulTruth On May 06, 2013
Verum est Deus


Deleted



Peoria, Arizona
#22New Post! Aug 16, 2011 @ 17:49:52
@WASH Said
A corporation, unlike a human, cannot be punished.


Huzzah!
shinobinoz On May 28, 2017
Stnd w Standing Rock





Wichita, Kansas
#23New Post! Aug 16, 2011 @ 22:41:14
@ThePainefulTruth Said

Huzzah!


Wrong! If the corporation profits from ill gotten gains- it needs to suffer the consequences AND throw the crooks in jail after taking them to the cleaners.

No? Well there are plenty of families that lost their bread winner & the ill gotten gains when dealing with a person- so if the supreme court says the corporation is a person. Person it be!
raditz On March 24, 2024
Blah





Houston, Texas
#24New Post! Feb 13, 2012 @ 05:50:05
@El_Tino Said

How is that a good place to do it? We spend $1 million a minute on imported oil! How does that help the economy?


Where in the US would you like to begin drilling?
Tar On April 28, 2014




San Antonio, Texas
#25New Post! Feb 13, 2012 @ 05:58:40
because nobody rides a bike as transportation anymore... *sigh*
El_Tino On October 12, 2023
booyaka!





Albuquerque, New Mexico
#26New Post! Feb 13, 2012 @ 07:05:56
@ThePainefulTruth Said

What they're doing is giving the consumers (the public) a tax break on oil. I don't like that the government picks and chooses where we get tax breaks, but as long as they're doing it, that's a good place to do it to help the economy.



@El_Tino Said

How is that a good place to do it? We spend $1 million a minute on imported oil! How does that help the economy?


@raditz Said

Where in the US would you like to begin drilling?


https://en.wikipedia.org/wiki/Non_sequitur_(logic)
shinobinoz On May 28, 2017
Stnd w Standing Rock





Wichita, Kansas
#27New Post! Feb 13, 2012 @ 13:24:16
@El_Tino Said

https://en.wikipedia.org/wiki/Non_sequitur_(logic)


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