Monday, May 24, 2010

BP (NYSE:BP) Spill Results in Gigantic Tax Increase

Out of control American politicians are at it again, using the BP oil spill for an opportunity to tax the oil industry to the tune of four times what it is today per barrel.

Anyone with a brain knows all of this will be passed on to the consumer, who will have to struggle even more economically on a daily basis.

The current tax on oil is 8 cents a barrel, and will be increased to 32 cents a barrel; all in the name of raising money to finance oil cleanups. This would raise an additional $11 billion in the next decade.

If the new tax is signed into law, it would be applied to oil from foreign imports and domestic oil as well.

The problem with this is nobody has debated what possible unintended consequences could accompany the new tax, and that has people nervous, as the U.S. government and the Democrats continue to think printing money and raising taxes is the answer to everything, even though it's going to devastate everyone before this clowns are thrown out of office in a few months.

There have been no hearings whatsoever about the proposed tax, which will be attached to a larger bill which includes a variety of unrelated issues and measures.


Anonymous said...

what bill? can you please ref. a bill number - I would like to read or see it for myself. thanks.

Anonymous said...

nevermind - i found the house resolution bill text on thomas -

H. RES. 1374
May 19, 2010

Sponsor: Rep Cassidy, Bill [LA-6] (introduced 5/19/2010) Cosponsors (1)

Anonymous said...

CNN Money has actual calculations on their website - how come you failed to mention that? I think your post is clearly reactionary. Surely, consumers will feel a pinch when the environment is so messed up that fishing/food production off of Gulf states are now impacted. From CNN's report nothing more than about 1 penny per gallon could be levied to consumers.

BTW, Ray - what are your credentials and are you part of the oil industry? Any disclaimers would be appreciated. Thanks.

Anonymous said...

Increasing the price of fuel is the only way to create a market that favors fuel efficiency in the long run. I see fuel taxes as a market-oriented approach which should be applauded by all on Wall St. The alternative is to have the government entangled in affairs they have no capability of understanding fully, such as the debate between compact fluorescent lamps, LEDs, and high efficiency incandescent bulbs. I wish this tax would go even further.

As for the complaint about tax increases affecting everyone, please consider that increasing the taxes in one area can allow one to lower taxes in another. Let's not talk about taxes and spending in general when this is a far more isolated issue.