Barack Obama plans to punish BP with tax hike as Gulf spill worsens
Barack Obama plans to punish BP with tax hike as Gulf spill worsens
Timesonline ^
Posted on Wednesday, May 12, 2010 2:54:38 PM by Sub-Driver
Barack Obama plans to punish BP with tax hike as Gulf spill worsens
Nico Hines in Washington
President Obama plans to force the oil industry to pay for the spill in the Gulf of Mexico by introducing a hike in tax rates and increasing the liability for clean-up costs.
The White House sent an unusually detailed proposal to Congress today that included a blanket 25 per cent tax increase on every barrel of oil produced. The legislation would allow the federal Government to demand more money from companies responsible for environmental disasters.
Mr Obama has been deeply frustrated by the failure to plug a ruptured pipe near the coast of Louisiana as it spews an estimated 25,000 gallons of oil every day. If passed his proposals could leave BP with a bill running to $10 billion (£6.8 billion).
The proposed legislation includes $118 million in immediate federal funds for food stamps and unemployment insurance for fisherman and other workers affected by the spill. The Bill also provides funding for additional inspections and enforcement of safety regulations on other offshore platforms.
Jeffrey Liebman, acting deputy director of the Office of Management and Budget, said that these costs would be passed on to BP, who leased and operated the sunken Deepwater Horizon rig.
“Nearly all of the cost that federal agencies will incur … will be charged to the responsible party,” he said. “Any additional costs that incurred because of this legislation get passed onto the responsible party.”
(Excerpt) Read more at timesonline.co.uk …
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