http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x50855The International Center for Technology
Assessment (CTA) released a study in December
1998 quantifying the true costs of oil. The study
identified the following federal tax breaks as
directly benefiting the oil industry:
• Percentage Depletion Allowance:
$784 million - $1 billion per year
• Non-conventional Fuel Production Credit:
$769 million - $900 million
• Immediate expensing of exploration and
development costs: $200 million -
$255 million
• Enhanced Oil Recovery Credit: $26.3
million - $100 million
• Foreign tax credits: $1.11 billion -
$3.4 billion
• Foreign income deferrals: $183 million
- $318 million
• Accelerated depreciation allowances:
$1.0 billion - $4.5 billion
Also, the Taxpayer Relief Act of 1997 has
recently added new rules, thus increasing the
likelihood of supplying the petroleum industry
with an additional $2.07 billion per year in
tax subsidies.
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In addition to federal subsidies, the oil
industry receives substantial subsidies on the
state level. Many state income taxes are rooted
in oil firms’ deflated federal tax bill resulting in
undertaxation of $125 million to $323 million per
year. Gasoline retailers and users benefit from
state-imposed fuel taxes which are lower than
regular sales tax, resulting in a $4.8 billion per
year subsidy.
According to
the National Defense Council Foundation, “Taken
together, the economic losses, the defense costs,
and oil supply disruption costs bring the total cost
of imported oil to approximately $250 billion per
year, or close to $4.00 per gallon over the current
purchase price of gasoline.” This estimate doesn't take into account the full cost of the IRAQ war. Thje last I heard this was estimated at somewhere North of $300 Billion.
Oh, and then there are the 2,400 lives lost and thousands injured. But who's counting?
Here's some more reading on oil subsidies:
U.S. Has Royalty Plan to Give Windfall to Oil Companies $7 Bil over 5 yrs In 2004 oil companies got a credit for the gasoline excise tax for every gallon of Ethanol blended
fuel they produced. That amounted to $1.7 Billion. Compare that to the $250 Billion for gasoline.
Subsidies for developing cleaner (remember Global Warming?), more efficient technologies makes perfect economic sense (can't believe I'm trying to communicate seriously with this idiot) but subsidies to a mature industry like oil does not make any economic sense. Let's get rid of subsidies that make no economic sense, then you'd be paying what oil really costs - something like $4.00 MORE per gallon than you currently pay.