A submission by a good friend, Ned Farquhar.
Yes, if you are producing oil and gas, or want to, you do pretty well under the tax reform legislation moving through the Congress with the Trump Administration's strong urging and approval. Significant wind energy tax preferences, however, will go toes-up. As this article says, it's part of a concerted campaign FOR fossil fuels, and AGAINST renewable energy. See "reward oil and gas while taking aim at renewables" https://oilprice.com/Energy/Crude-Oil/The-GOP-Tax-Bill-Is-A-Big-Win-For-US-Oil-And-Gas.html
Another consideration: If you are an oil and gas entity, and you make a lot of political contributions, it will be really nice to deduct your contributions as charitable donations not subject to Federal income tax. Just send them to a politically oriented church. How's that? The legislation now under consideration removes the prohibitions on political activity by charitable entities. https://www.independentsector.org/resource/2017-house-tax-reform-talking-points/
Yet further, tax reform will reward residents and businesses in oil-rich states where there is no income tax - Wyoming, Texas, and Alaska, for example - by eliminating deductions of state and local income taxes from Federal income tax. In contrast, residents of states with income taxes will suffer, paying taxes on the money they pay to their state governments in income tax. (The big GOP objection to the inheritance tax has always been that it makes an estate pay tax on funds that were already taxed when they were earned - in other word, double-taxation. But no objection to violating the same principle by double -taxing via elimination of the state tax payments tax deduction. And big advantages to oil-windfall state residents, who tend to be very loyal to the GOP. Remember, it's Alaska, Texas, and Wyoming...)
And oil and gas loopholes are preserved in this tax reform bill, which eliminates middle-class benefits and causes tax increases for many with incomes under $100,000/yr.
Pretty nice gift to fossil energy from the GOP Congress and Administration - while renewable energy is pushed backward.
2 comments:
Thanks for the info and links - I have shared with others.
Meanwhile: “Florida Senator Marco Rubio admits that the Republican tax cut plan, which benefits corporations and the wealthy, will require cuts to Social Security and Medicare to pay for it.
To address the federal deficit, which will grow by at least $1 trillion if the tax plan passes, Congress will need to cut entitlement programs such as Social Security, Rubio told reporters this week. Advocates for the elderly and the poor have warned that entitlement programs would be on the chopping block, but this is the first time a prominent Republican has backed their claims.” http://www.newsweek.com/tax-plan-social-security-medicare-welfare-republicans-rubio-729133
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