IRS Set To Tax BP Relief Money: Was This Obama's Plan?

Jillian Bandes | June 27, 2010 10:15 AM

The Internal Revenue Service declared that it would tax BP's Obama-mandated $20 billion slush fund at the same rates other income is taxed. It's common knowledge that BP offered up the $20 billion only after Obama twisted his arm, so this new scheme shouldn't come as a surprise.

The President is desperate to fund his costly public programs before a scorching November election during which the budget will be on center stage.

Assuming the lowest level of federal income tax (10%) that means the federal government stands to profit by $2 billion over the course of the tragedy. That windfall could go as high as $7 billion, depending on who receives the money. In a year when so many Americans are out of work — and not paying taxes — it's critical to find other sources of revenue. Otherwise, Obama cannot say that he's actually paid for the keystones of his Presidency — federal bailouts, Obamacare, and cap-and-trade.

This is morally despicable. In a decent world, oil spill victims would receive the full share of their restitution payments, because they've just endured a life-altering disaster. But it also represents a horrible, conniving maneuver by our President, who has no problem using disaster victims to pay for his political objectives.