House to vote on raising the oil tax

CNNMoney.com ^ | May 24, 2010: 2:22 PM ET | Aaron Smith

[chemicalman]

NEW YORK (CNNMoney.com) -- The House is expected to vote this week on whether to quadruple the oil tax to pay for the damages from the massive oil spill in the Gulf of Mexico.

But as dramatic as the increase might seem, analysts say that consumers will barely feel it.

The House "oil spill response" measure, included among others in a larger bill, proposes that the tax be increased from its current rate of 8 cents a barrel to 32 cents. This is projected to raise nearly $10 billion over the next 10 years for the Oil Spill Liability Trust Fund.

"We're not talking a big impact here; we are talking about adding less than a penny to the cost of the fuel," said Tom Kloza, chief oil analyst for the Oil Price Information Service, referring to the impact that the increase would have on the price of gasoline.

According to Kloza's calculations, the 8-cent tax on a barrel of oil works out to 0.19 cents per gallon of gas. He said that an increase to 32 cents on a barrel of oil would equal 0.76 cents per gallon of gas.

[stephenjohnbanker]

It ain’t so funny....

[metmom]

I guess so....

I knew what I was thinking but I guess it didn’t come across the way I thought it did.

Gas could go back down the the quarter a gallon I remember from my early days of driving without a peep from me in complaint.

[metmom]

Local farmers should get together and have a farmers market, or pick one week-end a month and open their farms to sales to the locals. They could still charge the same prices for their goods that they charge the bigger companies.

I am all for that. Matter of fact, I wouldn't mind paying them a little bit more than the wholesalers get.

It's a win/win situation. The farmers get more than they would getting robbed by the wholesalers and the customers would get fresher, better quality produce than they get from the stores.

[Tzimisce]

WE ARE BROKE!

We can’t afford higher prices!

You ****s in Congress hear me????????????!!!!!!!!!!!!!!!!!

[sickoflibs]

RE :”Gas could go back down the the quarter a gallon I remember from my early days of driving without a peep from me in complaint.”

I never saw prices like those but I was in college during the 1979 gas lines under Carter when it jumped from ~ 70 cents to $1.25 at some stations. Odd even license plates.

Unfortunately the youth that voted for Obama and support open homosexuality in the military never saw the economic effects from the 1970s liberal policies. They thought Obama was proposing something new.

[NeoCaveman]

Gas could go back down the the quarter a gallon I remember from my early days of driving without a peep from me in complaint.

It still is. Back then a quarter was about a quarter ounce of silver. Today a gallon of gas costs less than a quarter ounce of silver.

[metmom]

Per-gallon prices may not precisely quadruple, but they sure as heck won't only go up by a penny!

Exactly.

You know that there will be all kinds of excuses that gas is going to jump way the heck more than a penny.

[metmom]

I remember a quarter a gallon from before your days.

[sickoflibs]

Cigarettes were cheap too. I remember they were 50 cent a pack when I was in high school.

[metmom]

I didn’t smoke. I knew even then, that with my allergies I was asking for trouble if I started.

Besides, we didn’t have enough money even at those prices.

I also remember the *Get change back from your dollar* ads by McD’s. That didn’t last long either.

[sickoflibs]

Both my parents smoked and so I and my siblings followed but I gave it up for good after college before it got expensive. Mom still smokes, everyone else gave it up. Given smoking laws and taxes it would be no fun, but young Koreans seem to be drawn to is like american kids were in the 70s.

Notice no smokers in ‘That 70s show’. ? Actors smoked in movies and TV up to mid early 70s.

[smithandwesson76subgun]

The government can get any cost est. right. Are you going to trust them on this? Rats, taxes and more government is all it is.

[Red Badger]

At what point did the phrase, “Good enough for government work.” go from an approbation to a slur?...............

[unique]

Question: So, why do we need an “Oil Spill Liability Trust Fund” when the Oil Companies have absolute liability?

Also, wouldn’t this tax be on top of the price of gas that Oil Companies will naturally charge to cover the cost of this and other oil spills? It’s not like oil companies will not pass on their costs at all level and covering all events to the consumer in some way.

This seems like a somewhat transparent, to some of us, way of generating more revenue - probably for other federal government programs - the trust fund part is really laughable, given the social security fiasco.

I’m getting so pissed off.

[Impy]

analysts say that consumers will barely feel it.

If anyone believes that....I own several bridges and parks here in Chicago. They are all for sale, everything must go. Freepmail me for details. ;d

[newfreep]

Is there a Bill pending that would limit any oil company's clean-up liability to $75M?

I'm in a Facebook "discussion" and a liberal has made the charge the 'RATS are pushing for a "no-cap liability" and the 'PUBS are blocking it.

Any feedback is most welcomed....

[Repeal The 17th]

I suppose they will put the money that they collect
in a ‘lock box’ along side the social security money.