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Obama Rules Out Trading Keystone Pipeline for Payroll Tax Cut
President warns Republicans he will not tie approval of oil sands pipeline from Canada to extension of tax break
Barack Obama has warned Republicans he will not tie an extension of the payroll tax cut to the approval of the Keystone oil pipeline between Canada and the US.
Stephen Harper, the Canadian prime minister, turns to Barack Obama after their meeting at the White House, where the US president ruled out approving the Keystone pipeline from Canada if Republicans agreed to extend a tax break for families. (Photograph: Carolyn Kaster/AP) "If the payroll tax cut is attached to a whole bunch of extraneous issues, not related to making sure that the American people's taxes don't go up on January 1, then it's not something I'm going to accept," Obama said after a meeting with the Canadian prime minister, Stephen Harper.
Obama stopped short of a veto threat, saying he did not believe Congress should let it come to that.
The leader of the House of Representatives, Speaker John Boehner, and other senior Republicans have pushed for Obama to approve the pipeline, saying it would create much-needed jobs in the US. They have suggested adding into the payroll tax cut bill a provision speeding up the pipeline's construction.
Payroll tax cuts are due to expire at the end of the year. If they are not extended the White House says the average family will pay an extra $1,000 in tax.
Keystone has become a heavily contested political issue for Obama, who risks angering environmental supporters and losing re-election contributions from some liberal donors if he approves it.
The state department decided last month not to decide on the pipeline until 2013, after the presidential election. The delay is intended to allow the project's developer to figure out a way around Nebraska's Sandhills, an ecologically sensitive region that supplies water to eight nearby states.
The delay was poorly received in Canada, which views the project as critical to its economy. Labour groups in the US, as well as Republicans, want the pipeline built to create jobs.
Obama denied the delay was tied to politics and said it was important for Canadians to understand the need to make sure all issues were covered, especially the environmental impact and the health and safety issues.
"I assured [Harper] we will have a very rigorous process to work through that issue," Obama said.
Harper is critical of the delay and has previously suggested that American politics may be at play. But standing alongside Obama at the White House on Wednesday, Harper was more measured, while showing no sign that their talks had yielded any progress.
"Barack and I have discussed that on many occasions. He's indicated to me, as he's indicated to you today, that he's following the proper process," he said. "I take that as his answer and you can appreciate that I would not comment on domestic politics on this issue or any other issue here in the United States."
The Keystone XL pipeline would carry an estimated 700,000 barrels of oil a day, doubling the capacity of an existing pipeline from Canada. The 1,700-mile (2,735km) structure would carry as much as 700,000 barrels of oil a day from tar sands in Alberta, Canada, to refineries in Texas, passing through five states.
Supporters say it could reduce US dependence on Middle Eastern oil but opponents argue it would bring "dirty oil" that requires huge amounts of energy to extract, as well as the risk of spills.
Senate Republicans have introduced a bill that would require the administration to approve the Keystone XL pipeline within 60 days, unless the president declares the project is not in the national interest. But it has little chance of approval in the Democratic-controlled Senate.
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8 Comments so far
Show AllObama,a great REPUBLICAN president will eventually sign into law the passage of this bill concerning the pipe line. He fully supports, contrary to what democrats think, and is all in favor of destroying our environment,constitution, and freedoms in order to further solidify his position of power,wealth, and status.
So... in order to weaken Social Security's fiscal integrity, in preparation for its eventual privitization or demise, he will not sign off on the "game over for the planet" Tar Sands. What a guy!
Typical coverage by the "balanced" mainstream (corporate) media--that is, restating claims without checking the accuracy:
Point No. 1--" ... Republicans ... (say) it would create much-needed jobs in the US."
Fact No. 1--According to Cornell University's Global Labor Institute, the 20,000 jobs that TransCanada claims will result from the Keystone XL pipeline is greatly exaggerated. The U.S. State Department estimates no more than 5,000-6,000 direct jobs during the three years of pipeline construction--with only small portion of the workforce being hired locally (based on hirings for the Keystone I pipeline).
Point No. 2--"Supporters say it could reduce US dependence on Middle Eastern oil but opponents argue it would bring "dirty oil" that requires huge amounts of energy to extract, as well as the risk of spills."
Fact No. 2--According to Oil Change International, here are three key reasons why the United States will not "benefit" from tar sands oil transported via Keystone XL:
"1. The Keystone XL pipeline is an export pipeline. The Gulf Coast refiners at the end of the pipeline's route are focused on expanding exports, and the nature of the tar sands crude Keystone XL delivers enhances their capacity to do so.
2. Valero, the top beneficiary of the Keystone XL pipeline, has recently explicitly detailed an export strategy to its investors. The nation's top refiner has locked in at least 20 percent of the pipeline's capacity, and, because its refinery in Port Arthur is within a Foreign Trade Zone, the company will accomplish its export strategy tax free.
3. The oil market has changed markedly in the last several years, with U.S. demand decreasing, and U.S. production increasing for the first time in 40 years. Higher fuel economy standards and slow economic growth have led to a decline in U.S. gasoline demand, while technological advances have opened up new sources in the United States. Increasingly, U.S. refiners are turning to export. "
Of course he won't sign off on it..not yet.
Gotta wait til after the election for that.
Duh.
Oilbummer is predictable if nothing else.
And that Obama would think that he has to "assure" a foreign official that the delay is simply due to making sure the environmental assessment process is carried out properly is a joke.
Apparently Obama answers to the leader of Canada now, too? (in addition to his US bosses, of course: Larry Summers, Robert Gates General Petraeus, LLoyd Blankfein, Jamie Dimon, Boehner, etc)
Obama bears no semblance to a "leader".
He isn't "Presidential" in any way shape or form.
He's little more than a pathetic loser who does what he is told.
You forgot to include Obama's biggest boss: Israeli Prime Minister Netanyahu.
Naomi Klein's husband Avi Lewis would argue that Canada under Harper is more cosy with Netanyahu than the USA is under Obama.
If the average person was to look at the photo in this story, one might think that Harpo was part on the US Gov, I mean can't the Canadian PM have the Canadian flag or something on his podium. If the Obamaman was in Canada I really don't think there would be a Canadian flag on his podium, there would be the US pres's seal, as you see here.
Oh, wait sorry wake up Kyliedog.......Harpo is part of the American gov, we just haven't got our papers yet.
The Harpo Government has stooped to calling members of the opposition who oppose the Keystone pipeline as "un-Canadian" and "job killers". However, that article missed the whole point - the meeting was not about the Keystone pipeline but about Harpo and Obama signing a "border security" deal which reads like NAFTA on Steriods! ...
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“The perimeter deal announced today has been plagued by a bad process all along. It should have included groups concerned with health and safety, security and privacy, labour rights and environmental protection. Instead, the big business community was the only sector at the table with government and guided the process from the beginning.”
http://rabble.ca/blogs/bloggers/maude-barlow/2011/12/big-business-winner-harper-obama-border-deal