Tornado Alley (PROG)

[SilverSurfer]

LDi's big finish at the UN was to end tax breaks for oil companies...

gov may want to load even more consumer and job smashing penalties on energy but

so-called tax breaks the industry would lose are not specific to oil and gas at all. They are widely available to lots of industries

Section 199 is part of the domestic production activities deduction that was included in the American Job Creation Act of 2004, which passed with strong bipartisan support, especially in the Senate. It currently provides a 9% tax deduction from net income for businesses engaged in "qualified production activities" in the U.S. Those activities include manufacturing a product, selling, leasing or licensing it, and engineering and software activities related to that production. The deduction was intended to encourage domestic manufacturing, and in the hope that the tax break could provide a slight competitive advantage against foreign competition.

The oil and gas industry, especially in its extracting and refining, is heavily involved in U.S. manufacturing. Congress already penalizes the industry by only giving it a 6% deduction, rather than the 9% that other industries receive.

http://online.wsj.com/news/articles/SB10001424127887324789504578380684292877300