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Oil!
Nov 5, 2008

Der's e'rl in dem der hills!


Ham Wrangler
You donate one time... ONE TIME to the DNC and you get over a thousand pictures of Bo and Sunny, yet I have never seen Debbie Wasserman-Schulz dogs. What are you hiding DNC? #doghazi

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Oil!
Nov 5, 2008

Der's e'rl in dem der hills!


Ham Wrangler
Sounds like a :newt: presidency. We really need cooler pets in the White House again.

Oil!
Nov 5, 2008

Der's e'rl in dem der hills!


Ham Wrangler

Fried Chicken posted:

Reminder that BP's payments for these damages are tax deductible, and this pass the cost back into the tax payers they harmed

This confuses me. Are they doing more than carrying these costs on their finances as a cost to offset revenue when determining profits? I can't really see how under the tax code you can make them pay with after profit dollars. I am also glowering at their US headquarters real hard right now.

Oil!
Nov 5, 2008

Der's e'rl in dem der hills!


Ham Wrangler

Good Citizen posted:

It's just classified as an ordinary business expense. You pay taxes on profits instead of revenues, and any legal settlements will decrease your profits so that you're paying less in taxes.

It's not really 1-for-1 either. If you're in the 35% corporate tax bracket and pay a $1 million settlement then you are saving $1,000,000 x 0.35 in tax liability. And as I understand it a lot of BPs settlement is to affected businesses and not the government, so the government is getting screwed on both ends of the deal.

Disclaimer: this is a huge oversimplification

e: not sure about the subsidy stuff. A big part of oil accounting loopholes has to do with calculating resource depletion and its not something I've spent a lot of time with. Anyone who graduated from an accounting program in Texas could tell you all about it since it's a huge part of the focus there.

I think the largest "subsidy" that gets talked about is being able to write off all intangible (anything that didn't physically stay on location) costs immediately, while tangible costs are on a 7 year schedule. Historically, there have been some amazing tax credits to encourage production of gas (coal bed methane credits that wound up more than total revenue and were sold off to other industries) or oil (enhanced oil recovery to help offset higher development costs, but never got as crazy). I think that you could probably include the era of closed gas markets and separate prices for different types of production as a form of subsidy.

Oil!
Nov 5, 2008

Der's e'rl in dem der hills!


Ham Wrangler

I don't know why this seems like a terrible idea. Especially because it relies on you drilling a well next to or into the existing one, which is the best way to control a blowout when the surface (or seafloor in this case) conditions are beyond repair, just without the risk of failure.

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Oil!
Nov 5, 2008

Der's e'rl in dem der hills!


Ham Wrangler
The analogy of calling them "The Dream Team of the Taliban" is pretty apt thought. They have been out of Afghanistan for 12 years, so them going back would be like having The Dream Team play a pickup game with current NBA players.

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