Posted on 10/27/2009 7:36:14 AM PDT by SmithL
ACRAMENTO — As oil companies continue to reap record profits amid strained state revenues, a pair of Democratic lawmakers are hoping to tap into their deep pockets by installing an oil severance tax that could relieve growing pressures to cut more state services.
Assemblyman Pedro Nava, D-Long Beach, introduced a bill Monday called the Fair Share Act, that would impose a 10 percent oil severance fee on extractions from California wells to bring in $1.5 billion to the state's coffers.
A similar bill that has already cleared one committee, by Assemblyman Alberto Torrico, D-Fremont, would impose a 9.9 percent fee, but would earmark the revenues to higher education funding.
The attempt to sock it to oil companies is nothing new: lawmakers tried a couple times earlier this year — even with the blessing of Gov. Arnold Schwarzenegger at one point. But Republican lawmakers, who would need to provide three votes in each legislative chamber to reach the two-thirds vote threshold for raising taxes, have refused to consider it.
Nava said that since the impact of this year's budget cuts are just now being felt — with cuts in classrooms across the state, and in services ranging from nursing care to parks — Republican lawmakers will begin to hear more from their constituents. They will consider Nava's bill in a newly ordered special session on tax reform.
"Oil companies are getting a free ride," said Nava, surrounded at a Capitol news conference by representatives of school employees, health care providers, environmentalists and seniors. "We should not be so special. At a time when California families are feeling the bruising economic pinch, oil companies continue to be some of the most profitable companies in the world."
(Excerpt) Read more at contracostatimes.com ...
Fish gotta swim, and
Rats gotta tax!
I guess they think that we don’t pay enough for gasoline.
Never a spending cut.
“record profits” ?
Why not just make cuts?
I like the name from the comrades. The Fair Share Act.
Maybe they could give it a catchy name to help it pass
Like, say, ACCES or California's Clear and Equitable Share tax -- something like that. It will bring in a lot of dough - for a year maybe two.
It will also help with lots of new jobs for the drilling that doesn't happen.....
Oil companies don’t pay taxes - the little guy filling his car at the pump pays the taxes for them.
And the little guy at the gas station is lucky if he clears a penny or two on the gallon. He has to have a C store to stay afloat.
Getting desperate. Too bad they spent the last 30 years blocking drilling.
Bye bye calie - it was great knowing you. Give Jose a big hug for me.
There are a lot of marginal wells in CA. This new tax will cause some to be shut down and they may not get all the new revenue that they are planning on. Of course, they can’t see the logic of actually authorizing more drilling in CA.
With those marginal wells being shut down..jobs of servicing them will also go.
CA is in a death spiral. All the units of govt will have to increase their contributions to retirement funds this year..in spite of cutting hours and reducsing services and declining tax revenues. They will be looking for more of a bailout from Zero and DC.
Bring back off shore drilling and tax the profits of oil that comes from California not some Opecker nation.
Never a spending cut or eliminating payments to illegals.
Many like Johnny Dep don’t even live in the USA.
“There are a lot of marginal wells in CA. This new tax will cause some to be shut down and they may not get all the new revenue that they are planning on. Of course, they can’t see the logic of actually authorizing more drilling in CA.
With those marginal wells being shut down..jobs of servicing them will also go.”
When we drive south on 101 and get near Coalinga, we see hundreds of the old marginal oil wells, which are still pumping. As you note this tax will force the companies to cap those wells.
More illegals here then oil wells. How about a Fair Foreign Tax?
Excessive taxes is what caused the California oil fielda to shyt down when Carter put in the 10% well head tax!
Take the taxes off and California can produce enough oil to supply the US for hundreds of years.
“He has to have a C store to stay afloat”
What the hell is a C store!
Convenience store.
If your’e too damn lazy to type it out don’t post it!!!!
You’re.
Fair Share?
lolol
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