Responding to the massive BP oil spill, Congress is getting ready to quadruple--to 32 cents a barrel--a tax on oil used to help finance cleanups. The increase would raise nearly $11 billion over the next decade.
The tax is levied on oil produced in the U.S. or imported from foreign countries. The revenue goes to a fund managed by the Coast Guard to help pay to clean up spills in waterways, such as the Gulf of Mexico.
The tax increase is part of a larger bill that has grown into a nearly $200 billion grab bag of unfinished business that lawmakers hope to complete before Memorial Day.
| Memorial Day is a week away. Given what they need to achieve in that timeframe, if it passes it's going to be another unread bill. Sixty-three percent of voters want the Healthcare bill repealed, President Obama's latest Rasmussen poll popularity has dropped to 44%, and Democratic candidates have been avoiding the president's help. It's going to be an interesting couple of months. |
The key provisions are a one-year extension of about 50 popular tax breaks that expired at the end of last year, and expanded unemployment benefits, including subsidies for health insurance, through the end of the year. |