Washington – President Barack Obama wants oil companies to pay a $10 fee for every barrel of oil to help fund investments in clean transportation that fight climate change.
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Obama will formalize the proposal Tuesday when he releases his final budget request to Congress. The $10-per-barrel fee is expected to be dead on arrival for the Republicans who control Congress and oppose new taxes and Obama’s energy policies.
Still, the White House hopes the proposal will drive a debate about the need to get energy producers to help fund such efforts to promote clean transportation.
The White House said the $10 fee would be phased in over five years. The revenue would provide $20 billion per year for traffic reduction, expanding investment in transit systems and new modes of transportation like high-speed rail. It would also revamp how regional transportation systems are funded, providing $10 billion to encourage investment that lead to cleaner transportation options.
The White House said the tax would provide for the long-term solvency of the Highway Trust Fund to ensure the nation maintains its infrastructure. The added cost of gasoline would create a clear incentive for the private sector to reduce the nation’s reliance on oil and drive investments in clear energy technology.
The American Petroleum Institute projected that the fee would raise the cost of gasoline by 25 cents a gallon.
“At a time when oil companies are going through the largest financial crisis in over 25 years, it makes little sense to raise costs on the industry,” added Neal Kirby, a spokesman for the Independent Petroleum Association of America. “This isn’t simply a tax on oil companies, it’s a tax on American consumers who are currently benefiting from low home heating and transportation costs.
The administration said it recognized that oil companies would pass on some of the costs of the fee. However, it noted that Americans spend a lot of time and money as a result of an inadequate transportation system that also contributes to global warming.
“Businesses waste tens of billions of dollars each year in freight costs due to inadequate infrastructure and Americans currently spend a total of 7 billion hours stuck in traffic each year, and traffic is getting worse year after year,” said Transportation Secretary Anthony Foxx. “This is the hidden tax.”
I’m still reeling from all of Obama’s taxes. Please have a heart Barak, I’m not a millionaire and I’m not rich but you keep raising my taxes
Let me get this straight:
American shale oil companies are going bust by the minute because OPEC sees serious competition, so they floored their prices.
So Obama wants to nail the coffin closed by imposing a $10 barrel tax when the barrel is trading at less than $30 and the barrel costs more than that actual oil it contains, so OPEC can rein supreme again?
Talk about not having American interests at heart…
another way to “ruin”the lives of American taxpayers by this DICTATOR
And I was actually thanking him for bringing down the price of oil. I take that back now.
since the price of oil is way down,the tax revenue is down and the govt. needs to get more money that it lost .
This is not a tax on oil distributors. They never get taxed. They pass on all the high costs to US… And we can’t afford any more nonsensical taxes. Stop trying to “save the world” and help us here at home. Make policies that will help the economy, help the consumer and stop driving us crazy!!
The tax on the oil will effect everybody. — Down to the price of FOOD!! It will go up!! Start watching prices and compare in different stores == a nickel here a dime ther and quarter there. It adds up.
This is a direct tax on consumers. When gas stations buy from distributors, they pay all taxes up front and figure it into the price. It will just make Venezuelan oil cheaper than US.
Has any Democrat ever taken an economics class or read the WSJ?