Obama to seek new tax on oil in budget proposal

[jpak]

Source: Reuters

U.S. President Barack Obama will propose a $10-a-barrel fee on oil in his budget plan next week, as the White House seeks to boost the nation's investments in clean transportation projects, the White House said on Thursday.

The fee, which would be paid by oil companies, is likely to fall flat in the Republican-controlled Congress.

In the last year of his presidency, Obama has said the country must stop subsidizing the "dirty" fossil fuels of the past and focus on clean, renewable fuels that do not exacerbate climate change.

"By placing a fee on oil, the President's plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future," the White House said in a statement.

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Read more: http://www.reuters.com/article/us-usa-budget-oil-idUSKCN0VD2Q7Link to source

[metroins]

1. Saw on CNBC

Not sure where they came up with the $10 instead of a percentage.

[lobodons]

2. Dang, there goes the $1.35/gallon I got last week

Might go up to around $1.45 now. (Or even $1.50!!)

[humbled_opinion]

18. Wishful thinking they will use a small

tax to gouge consumers so figure the $10 per 55gallons (barrel) which should translate to roughly .05 per gallon will become $1.00 per gallon.... we are so screwed, get us off of combustion engines please...

[Bernin]

3. What a winner of an idea.

NOT!

This will certainly be hammered home by the Republicans in the fall.

Is the Democratic establishment trying to throw the election???

[daa]

7. My thoughts exactly! Nt

[Yupster]

16. I guess they could have come up with a more regressive tax

If they really tried to.

[valerief]

4. Ask for a fee but still give them the huge subsidies. Makes sense--nonsense, that is. nt

[Wellstone ruled]

5. Just another transfer tax.

Only effects the 99% when you look at refined products.

[Bernin]

6. Yup!

Nothing but a tax hike on the poor and middle class. (whats left of the middle class that is)

Say hello to president Cruzio Trumpenfeuhrer.

[Wellstone ruled]

9. This was once proposed during Carter years.

And you know dam well the Rethugs love this,put all environmental cost on the customer and none on the Corporations who are the cause.

[humbled_opinion]

19. I really never understand

why commodities are not regulated to cost based on what a person earns or their general wealth... i.e., billionaire hedge fund manager should be paying about 100K per gal for fuel usage to our $2.00.....then they would truly feel the pain...

[bluestateguy]

8. I can support that on one condition

That the oil companies be prohibited from passing the cost of the tax down to consumers.

Don’t Tax You.

Don’t Tax Me.

Tax That Fellow Behind the Tree.

[branford]

12. That would be impossible without outright cost controls,

something with even less support among both Republicans and Democrats than the proposed oil tax.

[7962]

10. "which would be paid by oil companies". HA! It would just raise prices.

Corporations merely collect from us, the taxes they pay to the government. Raise their taxes, they'll raise their prices.

[kelly1mm]

14. Just like every other tax on business. I truly wonder sometimes why DU often does not

understand this simple fact. Businesses only pay taxes that they collect from consumers. In the end, the consumers pay higher prices and the businesses pass that cost along.

[7962]

15. This way people will blame BUSINESS instead of govt!! nt

[muriel_volestrangler]

11. Of course, this makes a lot of sense, but DU reaction shows that Americans will reject it

because the USA is in a suicide pact with petroleum.

Just raising the federal gasoline tax by another 12 cents a gallon - about $5 per barrel - is needed to just allow for inflation since the last time it went up in 1993 - https://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States#Federal_taxes

Anyone who understands that climate change is real ought to support this. The USA does not tax oil enough.

[NightWatcher]

13. It would increase gas 33 cents a gallon right now.

Where this huge amount of money would go and who would control it seems vague. Plus, why start a very ambitious project as he's on the way out? This seems like a possibility for misuse of a big chunk of money.

I'm not a big fan of this fee that would hit motorists in the pockets just as we're seeing gas hit record lows.

[leftyladyfrommo]

20. Me neither.

I drive a lot and this low gas has been wonderful for me.

[Lucky Luciano]

17. I'm sure tge republicans pass this after repealing the 2nd amendment. nt

[bigwillq]

21. It won't be paid just by oil compaines

It will also be paid by consumers in the form of higher oil and gas prices.

No thanks.