Tuesday, May 25, 2010

Extending Health Insurance Subsidies

New taxes are on the way to save or create health insurance subsidies. Lawmakers are scrambling to find ways to take more money away from the earners and redistribute it to those who still don't have jobs.

One way to fund health insurance subsidies and other pet projects is to levy a new tax on the latest villain . . . oil.

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. 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.

Grab bag. Now that is an interesting term you don't hear every day.

A proposed tax on oil would increase the tax from the current $0.08 per barrel to $0.32 per barrel.

That's a 400% increase in taxes.

President Barack Obama and congressional leaders have said they expect BP to foot the bill for the cleanup.

"Taxpayers will not pick up the tab," Senate Majority Leader Harry Reid, D-Nev., said Monday.

I am assuming they said this with a straight face.

You need to understand that even though oil companies would have the responsibility for REMITTING the tax, they are not the ones who will actually pay it. Anyone who buys oil related products, that would be you and me, would FUND the tax for the oil companies by paying higher prices for those products.

Smaller cars, bigger government, Poppa Washington.
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