Tax on Oil May Help Pay for Gulf Spill Cleanup

[spotbird]

Source: NYT

WASHINGTON — The federal government has a large rainy day fund on hand to help mitigate the expanding damage on the Gulf Coast, generated by a tax on oil for use in cases like the Deepwater Horizon spill.

Up to $1 billion of the $1.6 billion reserve could be used to compensate for losses from the accident, as much as half of it for what is sometimes a major category of costs: damage to natural resources like fisheries and other wildlife habitats.

Under the law that established the reserve, called the Oil Spill Liability Trust Fund, the operators of the offshore rig face no more than $75 million in liability for the damages that might be claimed by individuals, companies or the government, although they are responsible for the cost of containing and cleaning up the spill.

Read more: http://www.nytimes.com/2010/05/02/us/02liability.html

[Hawkeye-X]

1. Why should we pay for it when it's the fault of Halliburton/BP?

This is stupid.

Let's sue them instead to ensure that they pay 110% of their cleanup and ensure cost of oil remains the same.

[stevedeshazer]

4. The tax is on the oil companies.

<snip>

In exchange for the limits on liability, the Oil Pollution Act of 1990 imposed a tax on oil companies, currently 8 cents for every barrel they produce in this country or import. The tax adds roughly one tenth of a percent to the price of oil. Another source of revenue is fines and civil penalties from companies that spill oil.

The result is a rainy-day fund, which over the years has been used mostly for spills that exceed the liability caps by relatively small amounts. But the trust fund managers have warned that a single big spill could make a sizable dent in the reserve.

</snip>

However, this amount is a pittance that we've paid for over and over again through inflated oil and gas prices for decades.

[dixiegrrrrl]

8. Bad ndews: GS and AIG were managing that fund.

:evilgrin:

[stevedeshazer]

2. $1 billion ain't gonna do shit in the face of this disaster.

It's much much worse than that.

Not that a billion won't help.

[ConcernedCanuk]

15. Maybe the USA could divert it's War money to the environment?

.
.
.

nahhh

gotta keep them wars going

Momma Nature's gonna get the short end

again

[City Lights]

3. Corporate welfare sucks.

:nuke:

[movonne]

5. YES...we have to pay for the corps to make billions and then

we get the privilege of cleaning up their messes..

[NecklyTyler]

6. We need a hefty tax on oil to pay for global warming

These oil companies are making obscene profits on oil production without ever having to compensate for the carbon pollution that is warming our planet. Higher taxes on oil would make clean, reliable energy sources more attractive and spur their growth

[Kablooie]

7. Of course! We have to supply the profits they have lost from screwing up.

Can't have them losing profits, you know. Bad for the economy.

[Ruby the Liberal]

9. For the love of Mike - Who in the F put that escape clause in there?

Same people who said a $500k shutoff valve remote control requirement was "harmful to business"???

[fascisthunter]

10. why isn't BP paying for it? And if they can't, we should nationalize all of their resources here

enough is enough

[MadMaddie]

17. President Obama said that BP would be paying for this disaster.

[onethatcares]

11. why should we become socialists at this time?

why not take the cleanup out of BP and then after they're broke and crawling, use our taxpayer dollars to mop up? They can always sign a contract to reimburse us for whatever it costs.

[KurtNYC]

12. profits private, liabilities public, how can they lose? n/t

[Duer 157099]

13. Heads they win, tails we lose

Will it ever change?

:sigh:

[swilton]

14. Bbbut a tax on oil???

This would affect the American way of life!:sarcasm:

[northernlights]

16. like all the effing wars we have to pay for

in blood and treasure and security isn't enough of a tax on oil.

[demigoddess]

18. not a tax on oil, a tax on oil PROFITS is what it should be

and I want to ask what give one industry (oil drilling) a right to destroy other businesses or industries (fishing, tourism, farming etc.)??????? when will the federal government answer that question???

[AlphaCentauri]

19. Socialist clean up services /eom