Re: Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges
Without the ability of the industry to directly write off their intangible (drilling costs...all costs other than equipment) expenses in the year that they were realized will cause the industry to be deader than dead.
This is what they did in the mid 1980's. They kicked us when we were already down. State severance taxes were allowed to even overlap the loss of intangible deductions.
Basically it was like....go drill it, if you drill a dry hole you will need to depreciate it over 7 years. If you hit a well....we will tax you into poverty.
This all led to $147 oil. Just saying.