By Chuck Ring (GadaboutBlogalot ©2009 – 2010)
Quote Freely From The Article – Leave The Pseudonym Alone
We will soon have a four-fold oil tax increase from eight cents to thirty-two cents on a barrel of oil if Congress gets its way. It doesn’t matter if it is domestic or foreign produced, the tax will be applied and the “trickle-down tax” will make its way to your wallets and purses.
The reason for the tax according to our Congress as reported by the Associated Press (AP):
… The revenue goes to a fund managed by the Coast Guard to help pay to clean up spills in waterways, such as the Gulf of Mexico.
The tax increase is part of a larger bill that has grown into a nearly $200 billion grab bag of unfinished business that lawmakers hope to complete before Memorial Day. The key provisions are a one-year extension of about 50 popular tax breaks that expired at the end of last year, and expanded unemployment benefits, including subsidies for health insurance, through the end of the year.
Yes, that’s right to the Coast Guard … a part of our military that has not the ability, nor equipment to clean-up an oil spill, or any other monumental ecological disaster. Bet that the money will fall down the rat’s hole that “cash for clunkers” and other such programs have seen. But what does our President and Senator Reid have to say:
Lawmakers want to increase the current 8-cent-a-barrel tax on oil to make sure there is enough money available to respond to oil spills. At least 6 million gallons of crude have spewed into the Gulf of Mexico since a drilling rig exploded April 20 off the Louisiana coast.
President Barack Obama and congressional leaders have said they expect BP to foot the bill for the cleanup. (emphasis added)
“Taxpayers will not pick up the tab,” Senate Majority Leader Harry Reid, D-Nev., said Monday. (emphasis added)
British Petroleum (BP) has said they will pay for the clean-up and say that they have already expended $760 million during effort to clean-up the spill in the Gulf and have not indicated they will place a monetary cap on their efforts:
The bill does not address a federal law that caps liability at $75 million for economic damages beyond direct cleanup costs (emphasis added.) Democratic Senators tried to pass a bill last week that would have increased the cap to $10 billion, but they were blocked by Republicans.
BP, if it is to be believed, has already spent just over ten times what they are, by statute, are required to pay and there is no indication, by hint or otherwise, they intend to quit paying.
Here’s more from the article, here’s the bill ( H.R. 4213) and the place to read the bill. As you wait to read the bill, think about the expanded role of the Federal government and the result of President Obama’s and this Congress’ final result … take a guess, will it be socialism or statism.
Related articles by Zemanta
- Oil Slick Crisis: Obama Visits Gulf Coast (news.sky.com)
- Oil tax increase would help pay to clean up spills (seattletimes.nwsource.com)
- BP oil spill could be plugged Wed. (cbc.ca)