Posted on 05/12/2010 11:54:38 AM PDT by Sub-Driver
Barack Obama plans to punish BP with tax hike as Gulf spill worsens
Nico Hines in Washington
President Obama plans to force the oil industry to pay for the spill in the Gulf of Mexico by introducing a hike in tax rates and increasing the liability for clean-up costs.
The White House sent an unusually detailed proposal to Congress today that included a blanket 25 per cent tax increase on every barrel of oil produced. The legislation would allow the federal Government to demand more money from companies responsible for environmental disasters.
Mr Obama has been deeply frustrated by the failure to plug a ruptured pipe near the coast of Louisiana as it spews an estimated 25,000 gallons of oil every day. If passed his proposals could leave BP with a bill running to $10 billion (£6.8 billion).
The proposed legislation includes $118 million in immediate federal funds for food stamps and unemployment insurance for fisherman and other workers affected by the spill. The Bill also provides funding for additional inspections and enforcement of safety regulations on other offshore platforms.
Jeffrey Liebman, acting deputy director of the Office of Management and Budget, said that these costs would be passed on to BP, who leased and operated the sunken Deepwater Horizon rig.
“Nearly all of the cost that federal agencies will incur ... will be charged to the responsible party,” he said. “Any additional costs that incurred because of this legislation get passed onto the responsible party.”
(Excerpt) Read more at timesonline.co.uk ...
That will sure help them keep gas prices low for the people
DO IT OBAMBI!!!
Maybe he needs money for reelection. Nothing like a shake-down to refill the campaign coffers.
Well, he’s been promising all along to bankrupt coal and oil, so here it comes.
If you make the punishment high enough, no one will drill anymore.
Welcome to the dark ages. We may have to find sticks of wood to build a fire to cover over and keep warm.
my thought ,too...
“Obama the top recipient of donations from BP”
http://www.freerepublic.com/focus/f-news/2505871/posts
Bingo! Only a dunce would believe that Companies, and not consumers pay fines, taxes, etc.
“”The proposed legislation includes $118 million in immediate federal funds for food stamps and unemployment insurance for fisherman and other workers affected by the spill.””
LOL. Bailout for BP. Good job for BP, Barack.
I knew the British had to be wrong about Obama. It took a few paragraphs.
BP also gets other companies taxed to subsidize its own disaster. Real good!
Of course it will, and thats what Owe-bama has stated he wants, much higher energy prices. He’s been quoted clearly on that aspect many times.
He just figures he won’t get blamed for it this way.
He’s wrong. Again.
In a perfect economy, probably so. But the relationships between the different links in the petroleum chain are more elastic than that.
As a refinery employee, I can tell you that refineries are frequently squeezed between rising crude prices and unmoving gasoline/Diesel prices. Many refineries out there are losing money or barely breaking even.
Bottom line: you can't always pass along increased costs to customers. Sometimes, your company has to absorb it, or go under.
And why doesn’t anybody want to talk about the government plan to store fire booms for immediate deployment?
Looks to me that the oil spill is government’s fault.
FUBOFOAD
BP gave him a $1 million donation. Do you suppose the MSM will ever mention it? (Rhetorical question.)
He believed we should pay that much to fund his social programs.
Seems to me the various private sectors should tax the federal government. The private sector has been decimated by recession, and needs to grow its revenue. It can’t do it based on the punitive taxes and regulations, so it needs to be released to tax and regulate the government. Fair is fair.
I’m sure they’re more than aware it will be passed down to the consumer. It’s part of their plan. Tax the US into parity with the rest of the world.
I’d gladly pay $5.00 p/g if it’ll insure his exit in 2012!
It's not punishment 0 is after, it is TAXES, deniro, moola, scratch, bucks, MONEY! He needs money to pay off all this crap he is proposing and he is going to get it any way he can with any excuse he can. Typical leftist democrat - never saw a dollar they couldn't spend.
The superior intelligence of the reality based community rears it's ugly head once again.
I’ve already helped BP pay some of this *punishment* only yesterday, woo hoo for me. :(
We are going to impeach your kenyan a$$ obama... one day.
LLS
Step 2 in the takeover of the petroleum industry.
So now we know the real reason why Leftists, liberals and the communist Democrat Party love the federal tax code - to punish and oppress private companies, industries, families and individuals. Especially those that speak out and oppose their programs and philosophy. Apparently imposing taxes on America is not for the purpose of funding the legal and proper operations of the federal government. Instead of prosecuting through the courts organizations that are the victims of unfortunate accidents that in no way can be construed as “crimes”, the communist Democrat Party/Obama run US Government will just impose special unconstitutional taxes (punishment) on whomever displeases it.
Even though the article does say “25 per cent” it probably means the proofreader was asleep; here is the closing paragraph to the piece:
“More than $100 million from the Oil Spill Liability Fund has already been spent by the US Coast Guard as it tries to contain the latest spill. Money for the fund is collected from oil companies through an 8 cent fee imposed on every barrel of oil produced in the US.
Under the proposals that figure would be raised to nine cents per barrel immediately and ten cents by 2017.”
25 cents per barrel doesn’t sound like much but when you’re BP you’ve got a lot of barrels.
Not so much. If you read carefully, you'll see that will be passed on to BP. Happy now?
Controlled burning has been used a couple times on this spill already. But when the oil is only a sheen, it isn’t ignitable. The dispersants and skimming have done a lot to keep the spill to a smaller size.
Wait a minute; maybe the writer meant 25% of 8 cents; no, that’s two cents.
Forget the whole thing, I have no idea what the writer meant.
An additional tax on production without a corresponding tax on imports will shift to more imported oil.
More jobs leaving the US and more tankers arriving. Tankers spill more oil than rigs so it will also mean more oil in the water over the long run.
Thank you. I should read more, not just the edit.
Yes, I am happy, this is good news.
But unclear how taxing other oil companies does not spread BP’s liability.
...so BRING IT ON!
The official 1994 report calls for burning as soon as possible and cites the need for fire booms to be deployed to the scene immediately. Who knows how much oil could have been trapped and burned if the fire booms had been available right after the explosion and sinking.
But I bet it would be better than it is today.
When the 1994 government report cites the first line of defense, fire booms and burning, and none are stockpiled, that’s problem. They actually ran tests and showed that fire booms and burning were the best first defense.
Containment at the source.
And how many missing fire boom stories would the lame stream media have run to date if Bush had been president.
“FUBOFOAD”
Hey! Watch it! “FUBOFOAD” is my middle name!
Big oil should just leave the USSA.
More blaming and punishment. Still no solution. Obama has done nothing to attack or solve this issue. Instead he is busy blaming and calling for committee hearings. Why do I get the feeling that if the country were invaded his first action would be to call hearings to identify the cause and place blame? he is a crap leader.
We should be getting daily briefings with a detailed plan and results.
Mac daddy know that but is gutless to tell the voters that he going to scre* them.
NEVER EVER BELIEVE ONE WORD MAC DADDY SAYS IF HIS LIPS ARE MOVING.
Funny how the MSM hasn’t reported this.
I agree the Feds caused a delay.
And the entire 1994 report, which was prescribed after the 1989 Exxon-Valdez fiasco, OPA of 1990, focused on speed needed to contain the damage from offshore oil well blowouts.
Hence, why it called for fire booms at the ready, stored near airlift points so they could be deployed in minimum time.
I am sure Congress can be counted on to investigate why the 1994 plan was not followed. If you watch the NOAA tape they knew ...
If the 25% flows entirely through to the pump, gas will be:
$2.80 + $0.70 = $3.50 per gallon at my local station [based on today's ppg] ...
Okay, which is it, Mr. Liebman... the responsible party, or the entire oil industry? (not that it really matters, the consumers will ultimately pay every penny of this)
One of the major responsible parties is the Obama administration for approving an unsafe shortcut in procedure that led to the disaster.
Destryoing a Big Eeevil Oil Company will make him an instant candidate for Progressive Sainthood (and the fact that it’s a British one will please his African Colonial forebearers)
Well..I’m guessing the taxes raised will go directly to funding Obummers reelection bid!
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