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?
