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Permalink Reply by Max on March 2, 2014 at 7:31

We hear everyday that the "Tax Code Overhaul" is something that needs to be done.  In fact, if you listen to news cast, our nation's tax code is a rule book set up for avoiding payment of tax rates established by previous law.  Some of these rules helps the nation, which helps the individual, and when some individuals get a tax break, other individuals tend to point out that those tax breaks are unnecessary. 

The problem with overhauls is that somewhere, somebody is going to cry foul.  That's why our Tax Code continues to grow each year instead of shrinking.  The post above by JHH is an example of how this works.  Where do we start to talk about tax reform for real? 

Royalty owners in U.S.  http://www.pasenategop.com/committees/environmental/2013/062713/Sik...

 

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Permalink Reply by JHH on March 2, 2014 at 11:58

I really fear them creating two rates... getting rid 90% deductions to make it look more "fair" for everyone.  Hopefully they won't hurt royalty owners too much.  But i really believe that over time slowly start raising rates again.   Politicians will always find ways to get more $$$.

jhh

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Permalink Reply by Max on March 2, 2014 at 16:16

I think we sometimes blame politicians too much for our own ills.  A chicken in every pot cost a lot of money.  The politician who delivers that chicken has two problems to deal with after an election.

The first problem is with the beef industry, the second is finding the money to pay for all those chickens.   

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Permalink Reply by 1kw6x71km1v37 on March 3, 2014 at 7:05

The ability to recover acquisition costs of a capital asset is fundamental to business. If that changes, then the redistribution socialists in Congress will have triumphed, and in due time America will be out of business.

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Permalink Reply by Max on March 3, 2014 at 9:40

Cheap Shot, I think the O&G Depreciation tax is a different animal, in relation to allowed deductions of business cost.

My basic understanding is that the tax rate is reduced/eliminated when the expense of continuing to operating a producing well exceeds production revenue.

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Permalink Reply by 1kw6x71km1v37 on March 3, 2014 at 14:55

Well, you are correct, Max. The two are similar, but different methods used to reduce taxes:

http://www.differencebetween.com/difference-between-depreciation-an...

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