Mass Transit Funding From Oil Industry Profits?
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As part of Governor Rendell's Budget proposal, mass transit funding would be significantly increased by a new tax on oil industry profits. Pointing to a record $38 BILLION profit declared by Exxon/Mobil for 2006, Governor Rendell has proposed a tax on oil companies, based on their profits from sales in Pennsylvania. This would not be a gasoline tax, paid at the pump, but rather a tax on the profits they declare to the IRS, and assessed to the company directly. If successful, Pennsylvania would be the first state in the country to tax this revenue stream, and might open the door to other states to do the same. Opponents have claimed that this would simply be passed along to the consumers, but the Governor has proposed a provision that would prohibit the oil companies from passing the cost on. Sierra Club® and "Explore,
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