Venezuela's Chavez hikes windfall tax on oil firms
Fri Apr 22, 2011
* OPEC member has enjoyed high crude prices
* Oil exports fuel Chavez's socialist project (Recasts with details of tax)
CARACAS, April 22 (Reuters) - Venezuelan President Hugo Chavez ratcheted up an oil windfall tax in a move that raises government income ahead of a presidential election, but puts a heavy load on oil companies in the OPEC member state.
The socialist Chavez, who will seek re-election next year, predicted oil prices will keep rising and said extra income from new tax rates will be transferred to a development fund for social spending.
"The decree is to increase the fiscal contribution and the contribution of petroleum resources to development," he said in a late night phone call to a television chat show on Thursday, adding that the war in Libya was driving prices higher.
U.S oil futures settled at $112.29 on Thursday, while Brent crude was $123.99. U.S. markets were closed on Friday for a holiday.
The new law was created under fast-track powers that allow the president to bypass Congress for several months and rule by decree.
Chavez first introduced a windfall tax in 2008 of up to 60 percent on revenues from oil prices higher than $100 per barrel, based on the ideas of Nobel Prize-winner Joseph Stiglitz. Under the new rules, the government will take as much as 95 percent.
South America's biggest oil producer, Venezuela pumps almost 3 million barrels per day and has enjoyed sharply higher income from its main export in recent months.
OK, so why can't Obama do the same and tax windfall profits like Chavez?
I think it is because the republicans are in big oils pocket and wouldn't want to hurt big oil. Plus the republicans don't want the president to get any thing good if they can help it.
Sorry it is 3am and I am a little grouchy.
The oil lobbyists spend millions influencing every member of Congress, the Executive and the Judicial. The party labels mean nothing; they bribe everyone. It's been like that since WW2. No progress will ever be made as long as this corruption continues.
Republicans and Democrats are two sides of the same coin. The game is rigged to create the illusion that you have a choice. It's basic divide and conquer. Big Oil and their buddies in the "defense" business run the country.
username "john galt" starts thread "doing the right thing" supporting socialism
thanks for the Easter laugh!!
"supporting socialism" now that's a laugh.
|Powered by Social Strata|