Nice to see some good news finally hit the state. This new bill that got signed while I was away, and I’m happy to see Senator Mary Landrieu (http://landrieu.senate.gov/hrt/index.cfm), actually do her job of representing Louisiana. A tough job to get 46 other states to give up some of that revenue, but it’s far better, in the long run, than some emergency funding from FEMA. The bill basically increases the tax revenue of states that allow oil companies to drill off their coasts from 2% to about 37.5%. This is federal property but you need citizens and infrastructure to allow companies to go offshore. Many of the residents of these states work for and most generally support the exploration for oil off their shore. States that choose not to drill offshore have nevertheless been happy to accept an equal percentage of the tax revenue, and also protest the bill. See below.
Rep. Ed Markey, D-Mass., called it “a raid on the federal Treasury” that could amount to as much as $170 billion over the next 50 years.
Mr. Markey should support drilling off the coast of Massachussets if he covets our gas money so much.
In general an increase in tax revenue to the state does not necessarily equate to good news, but hopefully more local control over how tax money is spent (as opposed to FEMA, the Army Corps of Engineers, etc).