Kathleen Blanco recently threatened to disallow drilling unless LA gets more tax revenue from the sale of oil. As usual, she does it in a ham-handed fashion, but does she have a point? On one hand, it is a noble effort on her part to try to get money for her state. On the other hand, isn’t offshore drilling typically take place on federal property? One could ask the same question about the Pacific and Atlantic coasts, and could the federal government technically allow offshore drilling on federal property off the coast of, say, California? If the citizens of that state does not want to build a pipeline to accept the crude oil, then the government could ship it to Alaska, or simply sell it on the world market. If no citizens of that state need a well paying union job, perhaps illegal immigrants can pump oil, which might after all lower the cost of production.

It is doubtful that Blanco will actually follow through on her threat, but she does have a point, why should she beg for Washington to free up cash, rankling tax payers throughout the nation, when a steady source of taxable revenue is available right in her backyard. Of course the legislature of Washington D.C. will have none of it, as they would like to control the purse strings. For those who don’t know already, property value is pretty high in D.C. Why? Because everybody is a millionaire!

Now don’t get me wrong, my people in DC, because I know y’alls got to get your scratch, and for one I can’t blame you. But here in Columbus, we’ve got Wendy’s and Nationwide Insurance company, and the Ohio State University (unfortunately it is also a state capital and growth is generally on the back of taxpayers here too). What is the source of the DC economy? Laws and regulations, and federal taxes paying for everything. I know that companies have to pay lawyers to represent their interests, but this just proves the inherent point that the federal government is too powerful, and one source of that power is taxes or royalties from Louisiana oil. Why should royalty revenue from Louisiana oil pay for the Washington DC school system when the Vermilion parish school system needs to be rebuilt? If Louisiana has too high a royalty rate, the forty thousand or so employees who drill for that oil can let their congressman know they are worried about their jobs. As it is now, we have to beg and plead with DC to get assistance.

Posted at 06:16 pm by Johnny B

Oil revenue?
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