Percentage Depletion of Imaginary

Costs Of all the dispensations . . . percentage depletion is the most remarkable achievement. It enables certain taxpayers to reduce their incomes by imaginary costs. Other taxpayers are not considered so deserving. They may only deduct what they spend. .— Louis Eisenstein, Ideologies of Taxation[1] The proposal would limit the exclusions allowed under percentage depletion allowed for oil and other mineral interests, to the taxpayer’s adjusted basis in the…