Quote:
Originally posted by bilmore
As for the tax breaks - it's the "we need to preserve domestic production" argument. It costs a ton to pull up oil here compared to the ME, but the last thing we need is for production here to shut down. There are strategic costs to that that we're better off avoiding.
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The tax breaks seem particularly odd in a time of high oil prices, however. I'm not sure of the exact contours, but it seems that you would want to design a system that provided a subsidy to domestic production (in the form of tax breaks) only when the price of oil is relatively low.
