New Oil Tax in the Works

by Ryan on May 24, 2010

in Economy,Law,Media Bias,Nature,Politics

In order to pay for the Gulf oil spill and to punish BP for having the nerve to drill at all, Congress is set to sneak a 32-cent tax per barrel of oil into a larger spending bill as early as tomorrow.  That’s a quadrupling which will, of course, ripple up the chain to your gas pump (just in time for Memorial Day weekend too!).  That’s not very nice.

Listening to Mark Levin a few minutes ago on the radio, he brought up a great point (as usual) on this whole month-long situation:  The Oil Protection Act of 1990 (pdf) actually specifies that in the case of a major spill, it’s the federal government’s responsibility to come up with and implement a clean-up plan in navigable commercial waters:  i.e., the Gulf of Mexico.  Go to page 269 of the bill and read sections 4201 and 4202.  Here’s a part:

“…the President shall designate the areas for which Area Committees are established under section 311(j)(4) of the Federal Water Pollution Control Act, as amended by this Act. In designating such areas, the President shall ensure that all navigable waters, adjoining shorelines, and waters of the exclusive economic zone are subject to an Area Contingency Plan under that section.  [emphasis added]

So, at the end of the day, BP should merely be asking Obama what his “Area Contingency Plan” is and help anyway they can to implement it.  All of this throwing BP under the bus, threatening to keep the “boot on the throat of BP” and some such, is pretty much diversionary since it’s Obama’s people who should be controlling everything.

In sum, while it’s the Obama Administration’s legal responsibility to clean this up, Congress still wants to punish the oil companies through increasing their taxes?  Yup — another fun day in the Obama Nation!

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