The entire idea that the industry receives “tax breaks” or “subsidies” simply isn’t true. The oil and natural gas industry doesn’t receive a dime in subsidized credits or unique “tax breaks.” Tax provisions available to the oil and natural gas industry are normal business deductions available to all industries. There are no “subsidies.”
Since its inception, the tax code has permitted corporate taxpayers to reasonably deduct business expenses when calculating their taxable income. This is known as cost recovery, which benefits all types of businesses and industries. The ability to recover costs is key to fostering a strong and stable investment environment. For our industry, it means oil and gas companies making that next energy investment, which translates into more energy for the country, more jobs for Americans and more tax revenue for government.
In any discussion of corporate tax reform, the oil and natural gas industry should be treated like other industries. Tax fairness means not singling out an industry – or a handful of companies within an industry – for higher taxes. Instead, the goal should be a tax structure that promotes domestic investment and international competitiveness. We harm ourselves if we implement measures, under the guise of reform that discourage investment and disadvantage U.S. companies against global competitors.