Dems propose more tax increases

June 9, 2010 at 12:00a.m.

Associated Press

WASHINGTON

Senate Democrats brought up legislation Tuesday coupling a fivefold increase in the tax that oil companies pay into a spill-liability fund with help for the jobless, doctors and cash-starved states.

The sprawling, 364-page bill contains many provisions long overdue for completion by Congress, including the renewal of dozens of popular but expired tax breaks for individuals and businesses.

Many elements of the bill, such as the tax cuts and further unemployment benefits for people out of a job for more than six months, enjoy broad support. But Republicans generally are opposed to the measure because it contains almost $60 billion in tax increases.

Even with those levies — on investment-fund managers, oil companies and some international businesses, among others — the measure would add about $80 billion to the deficit over the next decade, congressional analysts said.

It closely resembles a bill that passed the House last month with a handful of exceptions.

One change unveiled Tuesday would raise the tax on oil produced offshore from 8 cents to 41 cents per barrel. That’s 7 cents higher than legislation that passed the House last month.