Rigged game: oil companies are getting billions in tax giveaways!

UYGUR: All right. Now, still ahead. Slick tricks. Oil companies are getting billions in tax giveaways, thanks to outrageous loopholes. And you`re not going to believe all of the things that taxpayers could do with that money if things were fair and square.

UYGUR: Today in “Rigged Game,” we`re going to show you what would happen if just one of the eight subsidies oil companies received were to be eliminated. The expensing of intangible drilling costs was the first subsidy given to oil companies back in 1916. According to the IRS Web site, it allows oil companies to deduct the cost of workers` wages, fuel, drill repairs, hauling equipment and, ready for this last one? Supplies related to drilling wells. That`s right. According to this subsidy, they can write off just about anything related to drilling their wells. This subsidy is obviously archaic. It was put on the books back in 1916 when oil and gas companies were in their infancy to help them grow. But those days are long over. They have grown and grown and grown. They`ve made a trillion dollars in the last ten years.

Just the top five of them.

Now, since 1968, this subsidy has cost the U.S. treasury $78 billion in lost tax revenue. That`s 78 billion that could have been in your pocket instead of oil executives` pockets. Now, if we did away with it today, it`s estimated that we would gain approximately $8 billion over the next decade. You know what we could do with that $8 billion? Build about 19 new solar power plants that could reduce greenhouse gas emissions by nearly 7.6 million tons a year. Now, it`s been 2,069 days since the last oil subsidy bill was signed into law. And we`re going to keep on this story until all Washington has to admit they make no sense whatsoever.

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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