Rep. Katie Porter Berates Oil Executive for Deducting Expenses: ‘Please Don’t Patronize Me’
A Big Oil exec told me I had a “misconception” about a special tax break polluters get that other businesses don’t.
So, after explaining the deduction to him, I offered to write it out of the tax code if that what he wants. Just let me know! pic.twitter.com/ML25PMnrg5
— Rep. Katie Porter (@RepKatiePorter) March 9, 2021
Rep. Katie Porter (D-CA) berated an oil industry executive at a Tuesday hearing in the House of Representatives for claiming it was typical to claim a tax deduction for business expenses, telling him it constituted a “special” tax provision for his industry.
“How much of … intangible drilling costs do you get to deduct right away from your taxes?” Porter asked during a hearing of the House Natural Resources Oversight Committee, which she chairs.
“We get to deduct all of those, just like any other business,” Murphy replied. “There seems to be a misconception out there that you’re operating from that somehow the oil and gas industry have benefits from some special, sort of, tax structure. We don’t.”
Porter interrupted. “Reclaiming my time!” she said. “You do benefit from special rules. There’s a special tax rule for intangible drilling costs that does not apply to other kinds of expenses that businesses have.”
Federal law defines intangible drilling costs as expenses that have no salvage value. Those include the preparation of new drill sites, including some that ultimately yield nothing of value. Corporations are permitted to deduct 70 percent of those costs immediately while spreading the rest over five years.
“Please don’t patronize me by telling me the oil and gas industry doesn’t have any special tax provisions,” Porter added. “If you would like that to be the rule, I would be happy to have Congress deliver.”
Watch above via Twitter.
