U.S. taxpayers subsidizing Venezuela’s Hugo Chavez
Posted by mythoughtsandnews on August 21, 2006
Obscure 17-year-old oil pricing formula pays up to $1 million a day to harsh critic.
When Venezuelan President Hugo Chavez criticizes the U.S., makes threats to cut off oil exports, cozies up to Fidel Castro, props up other leftist governments in South America or negotiates a major weapons deal with Russia, he puts U.S. taxpayers’ money where his mouth is, thanks to a deal approved by the IRS in 1989.
James Williams, an Arkansas-based oil analyst with WTRG Economics, estimates that an obscure 17-year-old pricing formula between Venezuela’s state-owned Petroleos de Venezuela and its wholly owned U.S. subsidiary, Citgo Petroleum Corp., is worth up to $1 million a day to Chavez.
Under the agreement, approved by the IRS when oil prices were about 25 percent of what they are today, Citgo is forced to buy PDVSA’s crude for at least $5 a barrel over the market price. This results in a reduction in Citgo’s taxable earnings in the U.S. and an increase in Venezuela’s profits by hundreds of million of dollars annually.
How many other programs like this that are sucking up American taxpayer dollars? Bush can sit there with a smile on his face, because he is laughing at how stupid and gullible Americans are to let this go with no stopping him. Bush and the American government do not care about Americans, they only care about how Americans can make him rich. When Bush ends his 8 years in office, he will be sitting back in the life of luxury at the expense of Americans. Do you think Bush is really going to give up his job, considering the powers he gave himself by executive order to bypass the Constitution and stay in office?