Amid the Gulf Coast oil spill crisis, Congress is ready to do what it does best: raise taxes. According to H.R. 4213, tax prices will be raised up to 32 cents a barrel to clean up the mess BP is (or should be) responsible for . However, that is not the suprise. It is estimated that the increase could sum up to $11 billion for the next decade, but this tax increase is only apart of the $200 billion Congress had added for other purposes.
President Obama and Congressional Democrats have repeated said that BP is going to pay for cleanup. “Tax payers will not pick up the tab,” says Senate Majority Leader Harry Ried.
Even though BP exectuives promised to pay for the “legitimate claims,” according to the U.S Chamber of Commerce, the tax increase was ineptly put together. Regardless of how much BP will be responsible for the damages, the bill will still add $134 billion to the federal budget deficit.
Of course, time will tell how much of the actual amount the tax payers will end up paying for. However, effieciency and competence are the questions here. Just like the disastrous federal reponse to Hurrican Katrina in the Gulf Coast, this is ridiculous. Hell, I am still surprised that Washington hasn’t completely taken over this issue from BP yet.Published in