Report: Actually, the tax code doesn’t favor oil over renewables

posted at 5:25 pm on March 7, 2012 by Tina Korbe

Doesn’t matter who the cronies are, crony capitalism always makes a mockery of the free market. That’s why I’m OK with it when President Obama pledges to end “tax breaks for oil companies.” As Paul Ryan says, by all means, let’s close loopholes to lower rates.

But the gig is up on the Obama administration’s claim that the tax code disproportionately favors oil companies over renewable energy companies. It doesn’t. A chart from the CBO with commentary from The Heritage Foundation’s Lachlan Markay:

As the chart shows, renewable energy is far more heavily subsidized by tax carveouts than any other energy sector, including fossil fuels.

The chart does not, however, take into account the level of those subsidies in proportion to the amount of energy that each sector creates. By that measure, renewables’ federal subsidies are even more lopsided.

As Heritage’s David Kreutzer has pointed out, wind energy companies, for instance, get about 1000 times the subsidies that oil companies do, per kilowatt-hour of energy produced.

If the president wishes to correct the impression of hypocrisy, he has several options:

  1. He could level the playing field by increasing subsidies to oil companies (a poor choice in principle and practically if for no other reason than that it would add to the deficit).
  2. He could eliminate all energy subsidies (my preferred option).
  3. He can openly acknowledge his desire to take over the energy industry so as to force the nation off petroleum and onto renewables and knock off the rhetoric that he wants to end tax breaks for oil companies for any reason other than that.

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Without petroleum, no condoms. Without condoms the war on women will continue.

Bishop on March 7, 2012 at 5:26 PM

The tax code doesn’t favor anyone. Least of all America.

abobo on March 7, 2012 at 5:27 PM

1. stupid
2. Nevahhhhh!
3. That would require honesty, are u kiddin me?

ted c on March 7, 2012 at 5:28 PM

Without petroleum, no condoms. Without condoms the war on women will continue.

Bishop on March 7, 2012 at 5:26 PM

Don’t forget make-up\cosmetics.

WashJeff on March 7, 2012 at 5:33 PM

Wind power is a boondoggle of the first order, that can never be made profitable in any reasonable future.

Which is why the progressives and crony capitalists love it so.

Rebar on March 7, 2012 at 5:33 PM

That is why in a pure economic sense…Wind energy money given are not even subsidies……….subsidies benefit all parties in society: Govt get additional tax revenue for its coffers vrs the money spent, Companies use it to expand exploration and or production, consumers get cheaper and more consistent supply of energy…

works for oil, coal, food, Clothing, ethanol (lowers gas prices 90cents, 3-1 payback to govt as per Urbanchuck)

Wind energy is a welfare–dead end crony capitalism
Consumer is forced to use high cost energy, govt receives less in return than money spent, Companies exist only becuase of govt money…when it ends, its over.

Econ 101—big big diff between subsidies and essentially welfare for all in a society.

Subsidies are not a dirty word, but are becoming so

sbark on March 7, 2012 at 5:38 PM

Windmills: Bird Choppers
Oil Pipe-Lines: Great place for hunting since bears congregate there.

WashJeff on March 7, 2012 at 5:39 PM

If Tina Korbe wants to correct the impression she’s practicing journalistic malpractice she should correct this thread.

Buy Danish on March 7, 2012 at 5:40 PM

3. He can openly acknowledge his desire to take over the energy industry so as to force the nation off petroleum and onto renewables and knock off the rhetoric that he wants to end tax breaks for oil companies for any reason other than that.
========================================================

The only Energy sector Obama wants is Nuclear!

October 13, 2011
Obama’s Power Grid
******************

President Barack Obama’s environmental record has prompted eco-minded groups to call his policies “disastrous,” a “nightmare,” and a “sell-out.” Less well-known, however, is the fact that Obama himself has long been allied with Chicago-area pro-nuclear-energy leaders and that several people in his core council have professionally benefited from their association with Exelon, the power company that runs America’s largest nuclear fleet.

With Japan’s nuclear accident still looming, many in the environmental movement, who initially supported Obama’s “clean-energy” agenda, have been turned off, but, as Vanity Fair contributing editor Robert Sam Anson brings to light, Obama and his inner circle have vowed not to take the nuclear-power option off the table.

He’s warned of “the worst consequences of climate change” unless new nuclear plants sprout from the land. And of countries like China eating our technological lunch. And of unemployment getting even worse, due to the loss of good, green jobs. And of nothing less than “our economy, our security, and the future of our planet” being at risk.

As for political clout, it’s summed up by how Exelon’s former chief Washington lobbyist, Elizabeth Moler (who served as deputy national co-chair for the Obama campaign), described her employer to Forbes:

“the President’s utility.”
(More…….)
==============

http://www.vanityfair.com/politics/features/2011/10/obama-nuclear-201110

canopfor on March 7, 2012 at 5:41 PM

Last time I looked Obozo didn’t have any real authority to pass any law.

OkieDoc on March 7, 2012 at 5:41 PM

No crap. The ethanol subsidies are simply welfare bribes for Midwestern folks to keep their Congresscritters in office.

antisense on March 7, 2012 at 5:42 PM

OMG !!!! Hot Hair has just violated all three of the forbidden items of d-cRAT socialism:

THE TRUTH,
THE FACTS,
REALITY.

Homeland Security should be shutting down this site any moment now as “a threat to national security.”

TeaPartyNation on March 7, 2012 at 5:43 PM

Just got this Word Press Error Message!:

You are posting comments too quickly. Slow down.

Unfrackingbelievable.

Buy Danish on March 7, 2012 at 5:33 PM

Buy Danish:I get that message twice an hour,especially when I’m on
a roll,welcome to the club!:)

canopfor on March 7, 2012 at 5:44 PM

The Liar-in-Chief went to an Ivy League school, and I would really like to see his grades! Junior College people I know have a wider grasp on everything, than this Present Dunce does!….Does Turbo-Tax Tim talk debits and credits with this clown?

KOOLAID2 on March 7, 2012 at 5:45 PM

Even the Obama admin KNOWS these things are BOONDOGGLES…..

Here are the prices that President Barack Obama’s Energy Information Administration (EIA) projects for various sources of electricity per megawatt hour in 2016 (in 2008 dollars):

Now running Nuclear. $43.45 MW

Advanced Nuclear Projected for 2016. $63.30 MW

Nat Gas Combined cycle. $66.10 MW

Conventional coal power: $78.10 MW

Onshore wind power: $149.30 MW

Offshore wind power: $191.10 MW

Thermal solar power: $256.60 MW

Photo-voltaic solar power: $396.10 MW

Major_Skidmark on March 7, 2012 at 5:45 PM

Facts?

Obama?

Facts are anathema to progressives and community organizers.

Spin fables of fat cat bankers and oil executives lighting their cigars with C-notes, while their poor starving overworked secretaries must commute by foot, rail and bus from miles and miles away because there is no affordable housing within miles of where they are forced to labor so fat cats can collect C-notes and expensive Cuban cigars, all the while destroying billions of jobs.

Facts?

Obama wouldn’t know a fact if one walked up and kicked him in the nifties.

coldwarrior on March 7, 2012 at 5:46 PM

Without petroleum, no condoms. Without condoms the war on women will continue.

Bishop on March 7, 2012 at 5:26 PM

Bishop:Its a Slippery Slope,ahem,my friend!(sarc):)

canopfor on March 7, 2012 at 5:48 PM

Liberals get all upset because the oil companies are allowed to expense their Cost Of Goods Sold (COGS) in a similar manner as all other companies. It’s strange.

blink on March 7, 2012 at 5:30 PM

Ding-ding-ding-ding-ding! Your are correct.

If they are going to remove tax deductions for the costs of doing business in the oil industry (aka “subsidies,” which they are not), the same deductions that all other business get in this country, then they need to remove them for everyone.

There are no subsidies given to the oil industry. Unlike the renewable crap, that could not exist without the government subsidies and loans.

iurockhead on March 7, 2012 at 5:49 PM

canopfor on March 7, 2012 at 5:48 PM

Is this what my old econ professor meant when he used the expression “when the rubber meets the road???” :-)

coldwarrior on March 7, 2012 at 5:50 PM

Buy Danish:I get that message twice an hour,especially when I’m on
a roll,welcome to the club!:)

canopfor on March 7, 2012 at 5:44 PM

Seriously? I have never gotten that message. I couldn’t have been posting that quickly as I had to copy and paste a comment and then write it. I thought it was a new “feature” at Hot Air.

*UPDATE*

Just got the message again as I posted that response^^!

Buy Danish on March 7, 2012 at 5:50 PM

If the president wishes to correct the impression of hypocrisy

HAHAHAHAHA!

disa on March 7, 2012 at 5:51 PM

O/T….Shootout in Tulsa!

Update:
*********

5 patients in Tulsa courthouse shooting, all injuries considered non-life threatening; gunman taken to hospital – @KTULNews
Submitted 1 hour ago
====================

At least 1 deputy injured after shooting outside the Tulsa County Courthouse in Oklahoma

Submitted 1 hour ago from http://www.ktul.com
http://www.breakingnews.com/
=============================

Five Injured In Shooting At Tulsa County Courthouse
Posted: Mar 07, 2012 3:39 PM EST
Updated: Mar 07, 2012 5:28 PM EST
*********************************

http://www.ktul.com/story/17103427/shooting-reported-at-tulsa-county-courthouse

canopfor on March 7, 2012 at 5:58 PM

canopfor on March 7, 2012 at 5:48 PM
————————————

Is this what my old econ professor meant when he used the expression “when the rubber meets the road???” :-)

coldwarrior on March 7, 2012 at 5:50 PM

coldwarrior:Could be haha,and remember,’Slippery When Wet!
(sarc):)
======================

http://dalecotnam.com/wp-content/uploads/2010/08/slippery-when-wet-sign.jpg

canopfor on March 7, 2012 at 6:00 PM

canopfor on March 7, 2012 at 5:41 PM

Thanks, this is the stuff in the public domain. Can you even imagine what’s being hidden?

OkieDoc on March 7, 2012 at 6:01 PM

No crap. The ethanol subsidies are simply welfare bribes for Midwestern folks to keep their Congresscritters in office.

antisense on March 7, 2012 at 5:42 PM

Gone: End of Ethanol Subsidy Could Raise Gas Prices for 2012

Mandates for ethanol content remain however.

slickwillie2001 on March 7, 2012 at 6:07 PM

canopfor on March 7, 2012 at 5:41 PM
————————————–

Thanks, this is the stuff in the public domain. Can you even imagine what’s being hidden?

OkieDoc on March 7, 2012 at 6:01 PM

OkieDoc:Exactly!!!

canopfor on March 7, 2012 at 6:08 PM

canopfor on March 7, 2012 at 5:44 PM
————————————-

Seriously? I have never gotten that message. I couldn’t have been posting that quickly as I had to copy and paste a comment and then write it. I thought it was a new “feature” at Hot Air.

*UPDATE*

Just got the message again as I posted that response^^!

Buy Danish on March 7, 2012 at 5:50 PM

Buy Danish:New feature all right,thats why I crack open another
H/A window for back-up!:)

canopfor on March 7, 2012 at 6:10 PM

4.) Eliminate the corporate profits tax (the means through which these subsidies happen) entirely.

Count to 10 on March 7, 2012 at 6:17 PM

Buy Danish on March 7, 2012 at 5:50 PM

Picked up that comment Sunday morning with comments 3 minutes apart.

chemman on March 7, 2012 at 7:28 PM

The Prezuhdunce has to first admit to the impression of hypocrisy before he can correct it.

And facts? What facts? We don’t need no stinkin’ facts. Isn’t a facts an image that you transmit over a phone line? Hey, the facts are what we say they are.

stukinIL4now on March 7, 2012 at 7:53 PM

Also notice that the goodies for oil and gas industries increased under Carter and the Democratically controlled Tip O’Neill Congress of Carter and Reagan, floundered under Bush I, jumped under the Clinton/Democrat first 4 years, held steady under the Republican “Contract with America” Congress, FELL STEADILY under Bush II UNTIL 2006 when Nancy Pelosi & Co. took office when it SPIKED!

Glenn Jericho on March 7, 2012 at 8:16 PM

Obama is innumerate, what more evidence do you need, his academic records? Just a bunch affirmative action grade inflation at best.

dunce on March 7, 2012 at 9:52 PM