Oklahoma spends 1/3 of its budget on corporate tax incentives!

[Blinocac200sx]

For the record, I am against ALL welfare. Everyone should play on the same field.

 

[Shadowrider]

Chesapeake Energy just stuck out for me because I was already aware of just how many tax gifts they get.

The second largest natural gas producer in the US has paid less than $53 million dollars in taxes over its entire corporate history, on profits of $5.5 billion. Their effective tax rate is less than 1%.

I'm a Reformed Libertarian (and more fiscally conservative than people here probably suspect) but a tax rate of less than 1% is inexcusable.

Poop can you point out any of these tax breaks that Chesapeake gets that WalMart, Dicks Sporting Goods, 5 Guys Burgers or any other company doesn't get?

 

[HMFIC]

Chesapeake Energy just stuck out for me because I was already aware of just how many tax gifts they get.

The second largest natural gas producer in the US has paid less than $53 million dollars in taxes over its entire corporate history, on profits of $5.5 billion. Their effective tax rate is less than 1%.

I'm a Reformed Libertarian (and more fiscally conservative than people here probably suspect) but a tax rate of less than 1% is inexcusable.

I agree with than sentiment.

 

[poopgiggle]

Poop can you point out any of these tax breaks that Chesapeake gets that WalMart, Dicks Sporting Goods, 5 Guys Burgers or any other company doesn't get?

I'm glad you asked! From this article by Bloomberg:

The company and other U.S. oil and gas producers can thank a century-old rule that allows them to postpone income taxes in recognition of the inherent risk of drilling wells that may turn out to be dry. The break may be outdated for companies such as Chesapeake, which, thanks to advances in technology, struck oil or gas in 99.6 percent of its wells last year.

This particular rule no longer serves a useful purpose and is still on the books because the people who benefit from it can afford to hire lobbyists and donate to campaigns.

That's a Federal tax rule, and it's just off the top of my head. There are similar state-level tax gifts in Oklahoma but I can't rattle them off without digging into it.

 

[Billybob]

Oklahoma's Quality Jobs Program: Corporate Incentive Or Payoff?

[TULSA, Oklahoma -A job incentive program that has created tens of thousands of good-paying jobs in Oklahoma has also rewarded companies that cut jobs and even exported jobs overseas, an investigation of the program has revealed...]

http://www.newson6.com/story/20004774/oklahomas-quality-jobs-program-corporate-incentive-or-payoff

 

[Glocktogo]

Interesting article... According to it:

California spends only 5 cents per dollar, while Texas spends 51 cents.

And yet which state has a better financial record?

 

[Coded-Dude]

California and Business Friendly do no belong in the same sentence, let alone the same thread. CA likes to tax businesses ridiculous amounts of money to help pay for all the people on social programs(welfare, foodstamps, etc.). There is a reason that businesses and hard working families are leaving the state faster than they are entering. They are tired of being robbed to pay for those unwilling to find work. Every measure in the state this year that had anything to do with tax increases got approved. I will really feel bad for the more conservative people who are not yet convinced that moving out is the best option(they are holding out in the hopes that things will turn around - mostly CA natives).

 

[Fatboy Joe]

I'm glad you asked! From this article by Bloomberg:



This particular rule no longer serves a useful purpose and is still on the books because the people who benefit from it can afford to hire lobbyists and donate to campaigns.

That's a Federal tax rule, and it's just off the top of my head. There are similar state-level tax gifts in Oklahoma but I can't rattle them off without digging into it.

Actually, you are allowed to take the same deduction for OK purposes. What this article fails to mention is that this is just a timing issue. Intangible drilling costs (IDC) can be expensed in the year it is incurred if the proper election is made. However, if they didn't expense them they would be depreciated over 5 years anyways. Eventually they would be in the same boat. The expense now isn't so much a risk of having a dry hole, but more of an incentive to keep drilling. If CHK has such a high success rate, eventually those numbers will turn.

 

[Fatboy Joe]

Chesapeake deserves to be called out much less than people like Weyerhaeuser who received over 10 times the amount of money.

In fact, who is "HENDRICKS, THOMAS & MARY" who received more than Chesapeake to the tune of $17.1 Million. "GARY, SAMUEL & NANCY" also received 12.1 Million. "HAWKS, HOWARD & RHONDA" also pocketed 10.3 million?[/QUOTE]

Thomas Hendricks is the Chairman of Tenaska.
Howard Hawks is the Executive Vice President of Tenaska

It appears they own several power plants in OK.

Samuel Gary is owner of the Gary-Williams Energy Corp out of Denver.

 

[poopgiggle]

The expense now isn't so much a risk of having a dry hole, but more of an incentive to keep drilling.

I'm confused. If they're hitting product with a 99.8% success rate why do they need any other incentive to keep drilling?