CRISIS.. The Way Congress Justifies New Tax Increases

Posted by courage On May - 25 - 2010

From BreitBart:

WASHINGTON (AP) – Responding to the massive BP oil spill, Congress is getting ready to quadruple—to 32 cents a barrel—a tax on oil used to help finance cleanups. The increase would raise nearly $11 billion over the next decade.
The tax is levied on oil produced in the U.S. or imported from foreign countries. 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.

The House could vote on the bill as early as Tuesday. Senate leaders hope to complete work on it before Congress goes on a weeklong break next week.

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.

“Taxpayers will not pick up the tab,” Senate Majority Leader Harry Reid, D-Nev., said Monday.

Ahh Harry.. do you really think they taxpayers believe this outrageous lie?  Should this tax be enacted the increase per barrel will be passed along to the consumer, so yes Harry taxpayers will not see an increase on in their direct taxes, but consumers will feel the hit of this increase each time they fill up their car.   But CRISIS intervention is the current avant-garde method of increasing the burden on US citizens.  Time and time again, crisis in this administration has propelled the call for action often at the of placing their hand in our pocket taking the last quarter.

What exactly is the administration doing to stop this oil leak?  I saw on Fox a report about  centrifuge  technology which separates the crude from the sea water, sounds worth trying instead of sitting back and watching the destruction.

Using centrifugal force, the manufacturer claims the machines can remove 97 percent of the oil from the water. A single machine is reportedly capable of cleaning up to 210,000 gallons of water per day and the company is prepared to donate their use to help with the Gulf of Mexico cleanup.

Yep that’s right they will donate the use of this technology, so what is the administration waiting for?  Oh wait IF the crisis lessens, the administration may not be able to place a higher tax on crude and we all know how evil oil is to the administration.

And why has Governor Jindal heard crickets from the White House when he asked to create a temporary sand barrier reef  to limit the crude making its way to shore?  This would seem a logical response.  The White House is almost MIA during this crisis, except for advocating additional taxes and showing up on various news programs presenting yet another agency who now will take charge of the situation.  Lip service and cheap but this administration is the master of saying a lot and doing nothing, well except further increase the deficit.

Somehow I have a sneaking suspicion that the oil leak in the Gulf will not be plugged until this tax passes.

As an aside; I can’t help but wonder why the United States government does not have at least one deep sea robotic or for that matter manned submarine which could go down and cap the well.  Oh wait last year we (as in Congress) spent over $330 million to purchase a new fleet of jets for their comfort.

Comments are closed.