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Petroleum industry taxation helps fuel the oilpatch merger mania

Journal Article · · Strategic Plan. Energy Manage.; (United States)
OSTI ID:5879042
Congressional hearings on the different treatments accorded various taxpayers with respect to intangible drilling cost deductions, the percentage depletion deduction, and certain benefits available to independent oil and gas producers and the Supreme Court ruling that the windfall profits tax is constitutional indicate that the current petroleum tax system remains controversial and unsettled. It is time for the energy industry and Congress to reconcile their differences and make a cooperative effort to develop a new tax system that strengthens domestic energy security while still achieving tax revenue objectives. A three-step approach would be to repeal the windfall profits tax, allow all costs to be aggregated and amortized under an Accelerated Cost recovery system, and treat landowner royalties as long-term capital gains income.
OSTI ID:
5879042
Journal Information:
Strategic Plan. Energy Manage.; (United States), Journal Name: Strategic Plan. Energy Manage.; (United States) Vol. 4:3; ISSN SPEME
Country of Publication:
United States
Language:
English