Wednesday, April 27, 2011

Tax break for the oil industry?

Obama was on TV complaining about tax breaks for the oil industry. He wants to stop them, and spend the money (some $4 billion Obama says) on alternate energy. I have a question for Mr. Obama. Just what are these oil industry tax breaks? According to the web, the famous oil depletion allowance was eliminated for large corporations in 1975. So just what is this tax break, and why is it only $4 billion dollars. Seems like chump change for a trillion dollar industry.
And lastly, if such a tax break exists, and we end it, we don't want to spend the savings on boondoggles, in fact we don't want to spend it at all, we want to use it to reduce federal borrowing.

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