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So apparently you have one and can speak with authority. My next door neighbor raves about his. Traded a Camry to get it.
Your neighbor traded a Camry to get it...did he trade a new Camry to get it? If not, then that's not an apples to apples argument...that's more like an apple core to apples argument. The new Camry kills the Malibu in style, substance, and value. I can see someone spending over $30 grand for a Camry XSE, can't say the same for a Malibu and the $36k Premier is a bad joke.

The last Malibu lagged the segment frontrunners by a good bit and w/ the New Accord/Camry that came on back in 2017/18 it isn't even remotely close and probably shouldn't be treated as if they were in the same segment...I can say that as a person who has a midsize sedan who rented a Malibu a few years ago. They (Chevrolet) weren't close.
 

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Agreed on that. I was specifically referring to your "buy a piece of land and dig for oil, that isn't productive, I get to offset those expenses" comment (which is what I quoted and highlighted above). The cost of buying land, digging for oil etc. are not expenses. Those are capital expenditures and cannot offset profits or be expensed.
Either I'm confused at what you are saying, or you are confused..........

When you say: "The cost of buying land, digging for oil etc. are not expenses. Those are capital expenditures and cannot offset profits or be expensed."

1) I believe the "labor" used to look for oil would be a straight business expense and deductible in the year it is occurred.
2) The land and equipment, would be capital expenditures, put on the books as an asset and depreciated over whatever allowable period of time (years).
- Depreciation of assets is deducted from revenue, and thus lowers profit, and lowers taxable income, which reduces taxes, just like every other business expense.
 

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Either I'm confused at what you are saying, or you are confused..........

When you say: "The cost of buying land, digging for oil etc. are not expenses. Those are capital expenditures and cannot offset profits or be expensed."

1) I believe the "labor" used to look for oil would be a straight business expense and deductible in the year it is occurred.
2) The land and equipment, would be capital expenditures, put on the books as an asset and depreciated over whatever allowable period of time (years).
- Depreciation of assets is deducted from revenue, and thus lowers profit, and lowers taxable income, which reduces taxes, just like every other business expense.
Correct, but labor and straight-line depreciation would be a small fraction of the cost of oil exploration in any given year. And that brings us back to square one. This whole discussion started with whether accelerated depreciation is a subsidy or not. Accelerating depreciation over the normal lifespan of an asset is an expense available to any business. When that acceleration is selectively and drastically accelerated for some companies/industries, it's a subsidy.
 

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Correct, but labor and straight-line depreciation would be a small fraction of the cost of oil exploration in any given year. And that brings us back to square one. This whole discussion started with whether accelerated depreciation is a subsidy or not. Accelerating depreciation over the normal lifespan of an asset is an expense available to any business. When that acceleration is selectively and drastically accelerated for some companies/industries, it's a subsidy.
"O-Kay" I see what you are saying now, but I don't completely agree, playing word-games, not a subsidy in the truest form, I'd call that more of a "benefit". They aren't deducting more than normal, just deducting faster.
- If my employer paid me on June 1st for the next two weeks, instead of paying me on June 15th for the last two weeks, by your definition, that is a subsidy, personally, I'd call that a benefit.

And in regards to the oil/gas industry, it's done to promote US oil/gas production, vs. foreign oil. Is a import tariff a subsidy, or a benefit for domestic manufacturing?

What Is Subsidy?
A subsidy is a benefit given to an individual, business, or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.

KEY TAKEAWAYS
  • A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut.
  • In economic theory, subsidies can be used to offset market failures and externalities in order to achieve greater economic efficiency.
  • However, critics of subsidies point to problems with calculating optimal subsidies, overcoming unseen costs, and preventing political incentives from making subsidies more burdensome than they are beneficial.
 
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