Death comes to us all. Life's but a walking shadow | I think the point is, even when we have had Sec 179 available to us it was limited by a fixed amount, $25,000 or maybe now $250,000. The petroleum industry has had essentially total flexibility in how it calculated deductions and when they took them for many years. You and I on the other hand have had limits on exactly how we can depreciate expenses, 5 year property, 7 year property, 20 year property, etc. Once we choose a method, straight line , declining balance, etc. we're stuck with it. In addition there is apparently a provision by which they can simply delay paying taxes, they simply say we choose not to pay these taxes at this time. Apparently the petroleum industry has billions of dollars of unpaid delayed taxes. That's something you or I simply can't do.
As a result they are able to retain wealth which they can re-invest and grow their company, far faster that you or I could. |
Ted Cruz and ethanol
