What is the Briefing Book?
What tax incentives encourage energy production from fossil fuels?
Provisions of the federal income tax that subsidize domestic production of fossil fuels include the expensing of exploration, development, and intangible drilling costs; the use of percentage depletion instead of cost depletion to recover drilling and development costs of oil and gas wells and coal mining properties; and numerous smaller incentives for production and distribution of oil, coal, and natural gas.
What is a carbon tax?
A carbon tax is a tax on carbon dioxide emissions, the primary gas that causes global warming. By raising the cost of burning fossil fuels—the chief source of carbon emissions as well as the source of 90 percent of US energy—a carbon tax would help protect the environment while raising significant revenue. The burden of the tax would fall more heavily on energy-intensive industries and lower-income households. However, the revenues from the tax could be used to offset the regressive impact, to lower the budget deficit, or to cut taxes that reduce incentives to work, save, and invest.
Read All >>