The Soapbox

Moneyshot

Joined: 10/23/2001 Posts: 4891
Likes: 2476


It's not an incentive...its GAAP/tax accounting


Its the exact same way all business recognize the costs of their capital assets. Those income producing oil and gas reserves have an economic cost associated with them...depletion is nothing more than recognizing those cost on the P&L as oil is extracted and revenue is generated.

This is pretty basic accounting theory...its not a subsidy or an incentive...unless you believe we should somehow penalize E&P companies by not treating them like other manufacturers...because you dont like the product they produce.

(In response to this post by WaxHoo)

Posted: 11/16/2016 at 3:17PM



+2

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Current Thread:
 
  
Time to stop spending billions to subsidize Elon musk and co -- TomKazanski 11/16/2016 12:59PM
  Treasury report -- KCHoo 11/16/2016 3:54PM
  There are clearly some special -- Shenhoo 11/16/2016 4:58PM
  How about oil depletion allowances? ** -- WaxHoo 11/16/2016 2:54PM
  Ever heard of depreciation? -- Moneyshot 11/16/2016 2:59PM
  Frankly, my dear ,,, -- WaxHoo 11/16/2016 3:08PM
  Other than that, Mrs. Lincoln...:) ** -- Shenhoo 11/16/2016 2:39PM
  Here's a link I found -- 111Balz 11/16/2016 2:38PM
  Yes, yes and yes ** -- TpkeHoo 11/16/2016 2:29PM
  That will stop now that Trump is elected......Nah!!! ** -- Seattle .Hoo 11/16/2016 2:50PM
  I can't believe I actually read that -- WahooMatt05 11/16/2016 1:07PM

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