House Votes to Quadruple Oil Tax

Something really stinks, and it’s not just the stench from the gushing oil spewing into the Gulf of Mexico.
~Eowyn

Agence France Presse reports on May 28, 2010, that the US House of Representatives last Friday voted to more than quadruple a per-barrel oil tax that fills a special trust fund to pay for damages from major spills like the Gulf of Mexico disaster.
The measure called for raising the 8%-per-barrel tax to 34 cents, raising nearly 12 billion dollars over 10 years for the Oil Spill Liability Trust Fund, which currently holds about 1.5 billion dollars. The legislation, which passed by a 215-204 margin, also aimed to raise the cap on per-incident trust fund expenditures from one billion dollars to five billion dollars.
Some analysts have warned that the price tag for the catastrophic oil spill that resulted from the explosion aboard the Deepwater Horizon offshore drilling platform run by BP could top $14 billion.
BP is legally responsible for all cleanup costs, but is only liable for up to 75 million dollars in economic damages — a cap that vanishes if the British energy giant is found to have been negligent or engaged in willful misconduct.
To the extent that costs above that are not covered by BP — which has vowed to pay all “legitimate” claims — up to one billion dollars of the additional damages could come about of the trust fund. The legislation approved Friday would raise that ceiling to five billion dollars.
The Senate was expected to pass a different version of the bill when it returns from next week’s break, meaning that the two chambers would have to agree on a compromise version to send to President Barack Obama. The House-passed measure’s main goal was to extend a series of provisions aimed at battling stubbornly high US unemployment and extend jobless benefits to late November.

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Joseph E Fasciani
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Joseph E Fasciani

OK, let’s all be clear on this: as the Greatest Depression begins, the oligarchy [or would it more clear if it were spelled “oilgarchy”?] is going to get another enrichment from the sheeple of the USSA [not a typo], courtesy of the current regime which was put into place by BP’s very large campaign contribution/bribe. This is exactly the same as if they had been bank robbers, who ‘accidentally’ killed a number of bank patrons and various other life forms in and about the bank in their robbery attempt. Instead of being imprisoned for life or executed, the bank’s victims… Read more »

Ron
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Ron

Joseph,
The only thing wrong with your analogy is you did not go far enough. I well remember silver certificates and I remember the gold standard. I also remember Roosevelt, Hoover, and a few other destroyers of our country. Roosevelt destroyed on purpose, but I’m not so sure about Hoover. I think he was just an idiot. Tell us more that you remember about the fall of the United States.
Ron

Ron
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Ron

Joseph, Quite enlightening. I too am an old fart and have seen many changes in our society. I watched many of the ideas of Roosevelt and even as a kid did not think they would work. I have never believed economies are built from the bottom up. To me, that’s like saying let’s take water from the deep end of the pool and dump it in to the shallow end and raise the water level. I studied the Keynesian theory of economics and argued with my professor every day on how it would not, could not work. I never won… Read more »

Joan
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Joan

Ron, I think your analysis is excellent.