The chairman of the US Senate Committee on Finance proposes generally righteous tax reform that would specifically hurt oil and gas producers and refiners.
The tax code needs work in important areas like simplicity, fairness, and international competition. But Sen. Max Baucus (D-Mont.) is considering measures that would discourage activity in a lively part of an otherwise languid economy and raise prices of oil products.
Threats to the oil and gas industry appear in comprehensive discussion drafts newly published by the Finance Committee.
One change would require that "qualified extraction expenditures" be treated as assets and amortized—written down in value—over 5 years.