EARTHblog » Lauren Pagel
By Lauren Pagel
January 25, 2011
Today, Senator Shaheen (D-NH) introduced the Elimination of Double Subsidies for the Hardrock Mining Industry Act, which would save U.S. taxpayers hundreds of millions of dollars by eliminating an outrageous tax deduction for the mining industry. In an era of budget cuts and calls for increased fiscal responsibility to reduce the federal deficit, giving double subsidies to exceedingly profitable industries is a move in the wrong direction and Senator Shaheen s legislation would finally end this ridiculous corporate tax break.
When you think of mining in the United States, the last thing you probably think of is the tax code. But, a provision in the tax code accounts for one of the largest subsidies received by the mining industry each year. This subsidy has a name that only the IRS could come up with the Percentage Depletion Allowance.
The Percentage Depletion Allowance, or PDA, permits a mining company to deduct a set percentage amount of its gross annual income when calculating its federal income tax, based on the fact that the value of its assets (the minerals in the ground) decline as mineral production progresses.
The PDA applies nationwide to mining operations on private and public lands, and constitutes an exceptional tax break for U.S. mineral producers beyond those granted to other private industries.
By Lauren Pagel
January 18, 2011
Yesterday, 46 Democrats from the House of Representatives sent a letter to Department of Interior Secretary Ken Salazar that supports Interior s move towards public disclosure of fracturing chemicals for oil and gas operations on public lands. This letter stands in contrast to the 32 House members that signed a letter urging Interior to put off regulations until after the EPA hydraulic fracturing study has been completed.
As a first step in regulating what happens with oil and gas production on our public lands lands that are owned by you and me disclosure is a no-brainer, from my perspective. Regardless of what the findings of the EPA study might be, citizens deserve to know what chemicals are being by companies operating on lands that are part of our national heritage.
I hope the Interior Department stays true to its mission to protect public lands and the waters contained within them and moves forward with strong disclosure provisions. In addition to disclosure of chemicals involved in hydraulic fracturing, the Interior Department should lead the way by instituting the most stringent regulations for the entire lifecycle of oil and gas production. DoI should require that companies operating on public lands adhere to best practices to protect air, land and water resources.