A sickening example of the influence the oil industry has in Congress--perhaps second only to the banking lobby--is the decision by Democratic leaders to abandoned efforts to pass carbon pollution limitations. US Person does not support cap and trade since it essentially creates yet another financial market that can be manipulated and gamed by big companies. However, not even a carbon tax will make it pass the minority of Senators in the grip of big oil regardless of the 'small change' agent occupying 1600 Pennsylvania Avenue NW. Nor will the myriad of tax giveaways to the oil industry embedded in the tax code be ended. For an industry that generates trillions in revenue as a whole, it has just an incredible 11% effective tax rate! Just one egregious example of the industry's subsidization is the Deepwater Royalty Relief Act of 1995, signed into law by President Clinton, that suspends payments of royalties for deepwater leases determined not to be economically viable. Transocean, owner of the Deepwater Horizon,relocated its headquarters to the Cayman Islands in 1999, a notorious tax haven, before shifting to Zug, Switzerland. This move allows it to pay just 16% in taxes on its 2009 income of $4 billion. BP which reported $246.14 billion in 2009 revenue has paid only $144 in compensation to damage claimants so far as a result of the spill. The full environmental cost will probably never be entirely compensated, the departure of the clueless CEO Tony Hayward notwithstanding.
Tired of the tax subsidized rape of our planet? Tired of a few senators not passing legislation? Call your senators on Tuesday, and tell them to get to work passing carbon legislation. It is the only way out for you and your children.
[chart: McClatchy News Service]