Subject: txt mny engry -
One well-publicized element of President Obama’s proposed budget is the elimination of “subsidies” for fossil fuels. But, in large part, these are not subsidies at all. One proposal relates to the tax treatment of oil-company incomes.
According to the New York Times, Obama proposes to eliminate the expensing of what are called intangible drilling costs. These represent about 70 percent of all drilling costs and are made up of labor, supplies, contractors, and fuel... [snip]
So Obama, in proposing to eliminate expensing of these drilling costs, is not abolishing a tax subsidy, but is imposing a tax penalty. And, given his often-articulated disdain for fossil fuels, he is probably quite aware of this fact.
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