I have no idea what you are talking about, Dirt and I have been discussing the inclusion of intangible exploration costs in the accelerated depreciation of a well drilling operation, those costs include the preparation and geology studies done leading up to the drilling of a well, legitimate business expenses that to my thinking should be allowed for tax accounting purposes. Now you are talking about pass through taxes and hidden taxes..... I don't quite understand the point that you are trying to make. The main argument that Dirt and I have been having is that Dirt thinks that accelerated depreciation is somehow a gift to the industry and I have repeatedly tried to point out to him that is not at all the case. That accelerated depreciation when taken disallows the expense for subsequent years, that what has happened in the oil industry is exactly what was intended by the allowance, the oil companies are continuing to heavily invest in additional drilling growing the industry and their output. In a few short years the US has become the largest energy producer in the world, and in the end the government will still get its taxes, it will just take longer but in the mean time they are benefiting from industry growth, additional personal income taxes, fewer people on the government dole, and a smaller trade imbalance with the rest of the world...

I am not sure what your point was... something about if the corporation is forced to pay additional taxes that it will show up in the price at the pump, a valid point that has nothing to do with the conversation that you came into the middle of.

You are so full of crap, the only benefit is is that you get to depreciate the asset in 1 year instead of 5 or 7 years, but in the end you lose the depreciation that you would otherwise claim in the subsequent years, the government is not paying for your asset you are, just how dumb are you? The government is allowing you to take that fast depreciation to entice you to expand and invest, but they are not paying you anything for it and whatever tax advantage you gain in the short term you will lose in the long term.... and no it is not like the government is paying for your equipment it is like you are paying for your equipment. Only a liberal would be stupid enough to not understand that. When you make a capital investment that capital will eventually wear out or be used up, therefore it is expensed generally over the useful life of the asset which is totally fair to the business and to the government. In this case they allow for that expense to occur all at once so if you for instance go out and spend a quarter of a million dollars on a dozer you get to deduct that quarter of a million dollars all at once from the revenue side of your income statement, but since you are only required to pay a 35% tax rate that quarter of a million dollar deduction is really only results in a lessening of your tax bill by $87.500 So you still reduced your cashflow by $167,500 and the entire quarter of a million dollars was your money to begin with, the government didn't pay for shit.

Now Dirt, don't forget that if you take all of that deduction in year one you get no further deductions on that piece of equipment in subsequent years so as it continues to consume its useful life and you have to save for its replacement piece you receive no tax benefit.

Government demands a share of your profit but they assume no risk in your business nor do they contribute to its capital formation. It is outrageous in my mind that dumbass dems would think that accelerated depreciation is a subsidy, the only reason that theses industries have paid lower tax rates is because they continue to invest in new drilling operations at a rate that consumes most of the profit that they have made, really you should be cheering the success of the program, yet you call legitimate tax expenses subsidies.... Well Dirt according to your convoluted reasoning, the payroll that an employer pays his employees to produce and then deducts from his revenues to determine his income is also a federal subsidy, hell corporate taxes in your twisted thinking would better be though of as a sales tax, no deductions for expenses incurred in the production process should be allowed, and if they are then it is some sort of subsidy....

You are really thick headed, and like all progressives a socialist at heart. I don't know why I even bother with you....