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Subsidies and Oil

If anyone can point out a subsidy that oil companies get, feel free, because as near as I can tell there are none. A subsidy is when you either get a check for doing something or alternately get a check to do something. A subsidy is NOT when you deduct something on your taxes.

For those of you that don’t pay taxes let me explain how taxes work.

You earn X amount of money.

The government takes Y amount of money to finance various nefarious activities.

You have z left over to spend on you.

Looks like this: X-Y=z (note how much smaller the z is than the X)

With businesses it is a little different because they need to figure out what is and isn’t income, but it works the same way. Oil companies are allowed to deduct certain business expenses that don’t fit into the normal definition of business expenses.

There are tax credits, as there are for every other business and individual under the sun. Lets come back to the real world though and realize that there is no giant special program for handing out money to oil companies. Should we get rid of the credits they get? Yes, but I say we do that for everyone and lower the tax rate accordingly. Who wants to come here and do business with the corporate rate what it is?

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Categories: Uncategorized
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