Wisc. Governor Wants $1.50 per Barrel Tax on Oil

Gov. Jim Doyle proposes taxing big oil companies more than $270 million over the next two years to help pay for the state's transportation needs.

Doyle said the assessment will equate to $1.50 per barrel of oil sold in the state, and the companies would be prohibited from passing the tax on to customers at the pump.
Violations carry a criminal penalty of up to six months in prison.

The plan is a way to get oil companies to contribute to the rising costs of the state's infrastructure, Doyle said in an interview with The Associated Press.
"This is not the total solution but this is a significant part of it," said the governor, a Democrat.
The proposal will be a part of Doyle's two-year budget he delivers to the Legislature on Tuesday.

Assembly Speaker Mike Huebsch, a Republican, said he was glad Doyle recognized the need to provide funding for transportation improvements, but argued that much of the shortage resulted from Doyle removing $427 million from the transportation fund two years ago to pay for education.

The proposed tax would either be applied when the oil companies transfer the fuel between companies or subsidiaries or when it leaves the pipeline and is sent out for distribution, Doyle's office said.

It would not apply to sales of 100 percent biodiesel or the ethanol portion of E-85. Doyle said oil companies would be able to deduct the assessment from federal tax liability as a cost of doing business.


SOURCE:
Seattle Times

I'm not really sure what to think of this, on the one hand it is taxing
the oil companies, and not the people, and I'm all fro taxing the oil
companies, yet there's an apparent scandal with him taking out of
the transportation budget, but than he put it into education, so you
really can't complain, unless you want uneducated people.

I'm personally happy about it, as I said, I like when the oil companies
are taxed.


Comments, Opinions?

I am a Wisconsin resident and I can honestly say that pretty much anything Doyle does is only to cover his own butt and keep himself looking politically correct.

He took the money out of the transportation fund and now our roads are in terrible condition. They also wouldn't need that money for our education system if they would spend smartly. Do you realize that our state has had many bids put in for supplying our teachers with health insurance, but Doyle is under the teacher's union's thumb and they always go with their own over-priced insurance rather than taking insurance that is just as good, but cheaper. That is where a lot of "education" money goes to a lot of time.

You can be sure that there's something in this for Doyle if he's determined to do it.

Not #?

The Tax is not supposed to affect the consummers? hmm my BS meter just went crazy

They'll find a way to pass it to the consummers

If I was an oil CEO, you can bet I'd get the money rolling in to buy myself the favors of a few influences

I'm not buying it... I guess I'm cynical that way. One way or another we'll be paying for it. Do you honestly believe that oil companies will pay this tax? They'll just bury the tax in their cost to do business and pass it on to the consumer.

I believe Wisconsin already has some of highest taxes on fuel the way it is.

And I agree, instead of constantly paying more and more for those poor teachers, it would be nice to see someone stand up to the teacher's union and ask them to cut back like the rest of us (like paying something out of pocket for health care).

You bet Doyle's good at offering favors too! His administration is currently under investigation for taking several bribes. Oh man, don't even get me started on that snake. My blood starts to boil every time I hear his name. I can't believe our state voted him into office again even knowing that he was doing all this. They very quickly forgot all of the campaign promises he made and lied about. I suppose they also don't educate themselves very much. Our newspaper tends to leave those kind of stories out.

I like that whole "im all for taxing the companies" logic.

The companies employ people. They also sell a product. You increase a companies cost of operation you either decreas the wages the employees earn, how many people they can employ, or they increase the cost of the product.

Try to look beyond the "big oil" blinds and see the local barber shop or local butcher who may employ half a dozen people. Just beacuse one is infinitely bigger than the other doesnt mean fundamental economics doesnt apply.

Okay there corruption. If you want to stop corruption then attack corruption. Dont juat get tax happy.

BTW, if you come up with a good plan to stop corruption pass it on to Washington. Or dont. Theyd just destroy it and kill you for suggesting they clean up their act.

Originally posted by thisguyrighthere
The companies employ people. They also sell a product. You increase a companies cost of operation you either decreas the wages the employees earn...

Funny how they never decrease the wages the CEO's earn, isn't it?

Exxon pension: How much is too much?

The total sum for Raymond's golden years comes to at least $398 million, among the richest compensation packages ever.

I may be a little out of touch, but don't you think nearly 1/2 billion freaking dollars is a bit excessive?

Originally posted by mecheng

Originally posted by thisguyrighthere
The companies employ people. They also sell a product. You increase a companies cost of operation you either decreas the wages the employees earn...

Funny how they never decrease the wages the CEO's earn, isn't it?

Exxon pension: How much is too much?

The total sum for Raymond's golden years comes to at least $398 million, among the richest compensation packages ever.

I may be a little out of touch, but don't you think nearly 1/2 billion freaking dollars is a bit excessive?

Yeah it is funny. Its also their choice to grow top heavy with CEO's and in the long run the company suffers because of it.

How much is too much? They can do with the money what they please.
Its a horrible offense to millions whan an executive makes millions but sign some college dropout to a multi-million dollar contract to play with a ball and get a pass on drug charges and its all good. In fact hes a role model for todays kids. Its the same thing if not worse. I cant think of Enron trading cards or executive jerseys the kids wear to school.

Originally posted by thisguyrighthere
They can do with the money what they please.
Its a horrible offense to millions whan an executive makes millions...

It's a horrible offense to millions when oil companies are recording record profits on a commodity that we rely heavily on and really have little choice but to use. Then to give the CEO $1/2 Billion is a complete slap in the face. But, yeah, in the end it's their choice.

I am waiting for the day when a major company, tired of being a major revenue source for states, just pulls out of the state completely. I mean pull an "Atlas Shrugged" on them! Then we would see how fast these liberal idiots would change their minds, begging them to come back.

That's exactly what's happening in Wisconsin, RR. Our state is a tax hell and with Doyle in office it's getting even worse. Wish us luck. I think the feds are running into more issues where they're seeing some scandal going on. Hopefully they'll get enough evidence to boot the loser.

Why is taxing always the solution? I mean seriously... I am from Wisconsin. Not living there anymore, but my entire extended family still lives there, so I visit quite often. I have lived in areas that are not taxed nearly to the extent that Wisconsin is.

Guess what... The standard of living is 100 times better in areas were excessive taxation from the state does not exist. In my humble opinion...

If this tax gets passed... The burden will be passed on to the consumer some how... Through some hidden loophole... And if you don't believe this you are just plain naive!