We are getting SCREWED on gasoline!

SMITTY wrote:This will make your blood boil! Have a look at this chart:

http://www.theblaze.com/stories/this-ch ... ce-of-gas/

SMITTY wrote:This will make your blood boil! Have a look at this chart:

http://www.theblaze.com/stories/this-ch ... ce-of-gas/

SMITTY wrote:This will make your blood boil! Have a look at this chart:

http://www.theblaze.com/stories/this-ch ... ce-of-gas/

SMITTY wrote:Here's an oil subsidy for you Sam. Should we eliminate it as well? It is an oil subsidy, right?

Low Income Home Energy Assistance Program ( LIHEAP ).

Why can't we eliminate that one? Why must we pick and choose?

lsayre wrote:There are two ways to read this chart. it is very possible that the divergence between crude oil and gasoline means that crude oil is being manipulated and thereby held at an artificially low price right now. We have been working hard (OK, forcing) Saudi Arabia to keep crude oil low in price in return for protection.

rockwood wrote:The biggest issue I think is simply that the worth of the dollar is lowering and since the "petrodollar" is used by countries to buy oil, the dollar doesn't go as far for oil as well as at the pump.
Want someone to blame, I would start with fed reserve ruining our currency as well as taxes/regulation etc. If you look at the recent history of the price of oil compared to the strength of the dollar, you will see the trend.

SMITTY wrote:Where does this "oil subsidy" myth come from? The left loves to throw that one out there, but I have yet to see proof of it.

Intangible Drilling Cost Tax Deduction

The intangible expenditures of drilling (labor, chemicals, mud, grease, etc.) range from (65 to 88%) of the cost a well. These expenditures are considered "Intangible Drilling Cost (IDC)", which is 100% deductible during the first year. For example, a $100,000 investment would yield from $65,000 to $88,000 in tax deductions during the first year of the venture. These deductions are available in the year the money was invested, even if the well does not start drilling until March 31 of the year following the contribution of capital. (See Section 263 of the Tax Code.)

Tangible Drilling Cost Tax Deduction

The total amount of the investment allocated to the equipment "Tangible Drilling Costs (TDC)" is 100% tax deductible. In the example above, the remaining tangible costs ($35,000 to $12,000) may be deducted as depreciation over a five to seven-year period. (See Section 263 of the Tax Code.) Congressional Incentives Encourage Domestic Development: Congress has provided tax incentives to stimulate domestic natural gas and oil production financed by private sources. Drilling projects offer many tax advantages and these benefits greatly enhance the economics. These incentives are not "Loop Holes" -- they were placed in the Tax Code by Congress to make participation in oil and gas ventures one of the best tax advantaged investments.

Alternative Minimum Tax

Prior to the 1992 Tax Act, working interest participants in oil and gas ventures were subject to the normal Alternative Minimum Tax to the extent that this tax exceeded their regular tax. This Tax Act specifically exempted Intangible Drilling Cost as a Tax Preference Item. "Alternative Minimum Taxable Income" generally consists of adjusted gross income, minus allowable Alternative Minimum Tax itemized deduction, plus the sum of tax preference items and adjustments. "Tax preference items" are preferences existing in the Code to greatly reduce or eliminate regular income taxation. Included within this group are deductions for excess Intangible Drilling and Development Costs and the deduction for depletion allowable for a taxable year over the adjusted basis in the Drilling Acreage and the wells thereon.