So, let us see if I get this straight. The oil and gas industries claim they are too frail to give up their welfare check, they tell Sen. Max Baucus.
Our concern is that the proposals in your discussion draft – such as extending the period during which businesses can recover their operating or labor costs – as in the case of drilling expenses – will take cash away from capital-intensive businesses like ours and significantly reduce future domestic investment. In addition, proposals to extend depreciable lives and eliminate valid, long standing accounting methods, like LIFO, will also significantly hurt energy businesses seeking to grow and invest in new capital projects.
Remember that these are the same companies which continue to rake in enormous profits, quarter after quarter, and certainly don’t need taxpayer-funded corporate welfare from the government. Meanwhile, the political allies of these same companies simultaneously argue that we should eliminate popular public policy support for clean power.
Ten senators — nine Republicans and Democrat Joe Manchin — want Baucus and ranking member Orrin Hatch to allow the production tax credit for wind to expire at the end of the year. “Continuation of the wind PTC now only picks winners and losers, it is distorting out energy markets and it’s past time to end a temporary tax credit that was put into law in 1992,” the senators write.
Note that the “don’t pick winners and losers” crowd doesn’t mind doing the picking itself? These fossil fuel folks don’t have any problem with being wildly inconsistent, that’s for sure.