Obama to propose $10-a-barrel oil tax


#1

President Barack Obama is about to unveil an ambitious plan for a “21st century clean transportation system.” And he hopes to fund it with a tax on oil.
Obama aides told POLITICO that when he releases his final budget request next week, the president will propose more than $300 billion worth of investments over the next decade in mass transit, high-speed rail, self-driving cars, and other transportation approaches designed to reduce carbon emissions and congestion. To pay for it all, Obama will call for a $10 “fee” on every barrel of oil, a surcharge that would be paid by oil companies but would presumably be passed along to consumers.
There is no real chance that the Republican-controlled Congress will embrace Obama’s grand vision of climate-friendly mobility in an election year—especially after passing a long-stalled bipartisan highway bill just last year—and his aides acknowledge it’s mostly an effort to jump-start a conversation about the future of transportation. But by raising the specter of new taxes on fossil fuels, it could create a political quandary for Democrats. The fee could add as much as 25 cents a gallon to the cost of gasoline, and even with petroleum prices at historic lows, the proposal could be particularly awkward for Hillary Clinton, who has embraced most of Obama’s policies but has also vowed to oppose any tax hikes on families earning less than $250,000 a year.

Read more: politico.com/agenda/story/2016/02/obama-oil-tax-budget-000038#ixzz3zExhrS6X

I can’t wait for Obama to explain to his middle class and "working poor’ voters why they are paying an additional 24c/gallon for gasoline. Depending on how much of the cost the oil companies can pass on to the various other products other than gas and diesel fuel. If the entire tax is paid for with gasoline and diesel, the hike will be $0.33/gal.


#2

The only real point to this is to get the Republicans to block it, then whine about how they hate the environment and want to kill all the baby seals or something. Everyone knows it will go nowhere.


#3

Yup.

Does not everyone see that this is a regressive tax, affecting the poor primarily (through higher gas costs)??


#4

Everything affects the poor primarily. I should know because we are poor. The price of food keeps going up. Every monthly bill we have has gone up since the first of this year.


#5

The drop in oil prices has been a benefit to consumers, especially the poor and middle class. If the market produces cheap oil and cheap gasoline, naturally Obama cannot let that stand. He’s got to find a way to make energy prices skyrocket. Can’t have people using cheap energy. They’ve got to use expensive energy. And if it involves higher taxes, even better, by his standards.


#6

The Democratic Party - caring about the poor and middle class since, well…, never.


#7

And that is quite a statement for February.


#8

I have offered prayers for you.


#9

#10

Land phone went up five dollars. That may not be a lot to you and others, but to a poor person, that is a lot. We don’t own cell phones. I tore up the application for an Obama phone. Electric company every few months puts in for a rate increase. The latter really have everyone over a barrel. What are we all going to do - cancel our service?

Food in my area has always been high. Once it goes up, it rarely comes back down.

We aren’t on food stamps. Welfare doesn’t cater to everyone, only to certain folks. We are not two of them.


#11

Obama can call for anything he wants, but with less than a year left in office nothing will actually happen. It is critical that a conservative gets elected as our next president, or we will have more of this kind of nonsense.


#12

Pray for us, Lormar, when you enter God’s kingdom. I couldn’t be more serious in asking this.


#13

I understand what you are saying about your phone bill. The average person is caught between the rock and a hard place when it comes to choosing phone service. Cell phone service can be less expensive if it only has limited ability - the house phone costs have gone up so much that its no longer feasible to keep. If the phone should go out of service, connecting to recover is no easy matter. They demand a person be available to their service rep at any time between 8 a.m. and whatever or a large charge will be billed. No matter if the reconnect takes a thrown switch at the exchange. Its a monopoly and many have no choice of service.

Back to the price of oil; I hope Obama’s dream of punishing the American people falls flat!
Most are slowly recuperating from the extreme price of gas that began to climb when Barry got in office and have just begun to fall to a level Americans can get to work and back and a little extra miles for enjoyment. It would only be a further waste of tax dollars for his legacy.


#14

He didn’t hesitate, through the EPA, to make electrical energy more expensive than it needed to be. While Congress won’t approve a new tax on oil, Obama might impose something regulatory that makes the price go up anyway. I do understand he is refusing to allow renewal of some of the oil leases on government land. He’ll do everything in his power to make transportation more expensive. That will also make food more expensive. Agriculture uses a lot of petroleum in a lot of ways.


#15

I remember Obama stating that our electric bills were going to be much more money. He was bragging!


#16

The thing is though, we already pay a tax on oil, at the pump…not sure how they can just tax something more than 1 time and expect people to accept it?

Maybe we need another incident similar to the Boston Tea Party, but this time, they could make sure cargo ships loaded with oil never reaches its destination?!! Not endorsing throwing barrels of oil overboard though! It worked back then, no reason why it wouldnt be the same today…right?


#17

Sorry Texas oil men aren’t dumb enough to throw away the oil they are pumping out of the ground. Neither are the ones in the Dakotas.


#18

He seems desperate for a legacy. I expect the funds will be wasted on some bloated high speed rail bail out.

For the math, Obama is proposing a huge increase (+155%). We currently pay the feds 18.4 cents per gallon on gas and 24.4 cents per gallon on diesel. A barrel yields 12 gal of diesel and 19 gal of gas

$2.93 = 12 x 0.244
$3.50 = 19 x 0.184

$6.43 Total per barrel oil

He’s asking for another 32 cents per gallon I’d guess.

I would have increased the fed excise tax by 50% years ago on gas/diesel, to keep the Highway Trust Fund flush. The Trust Fund works well in supporting our bridges and highways.


#19

No offense to the American people, but this sort of Obama garbage was the genesis of the modern tea party, and they have been pilloried and excoriated at every turn by the media and by many voters who claim they are too “extreme” or “wacko,” as though most of what the Progressive in Chief believes and promotes isn’t extreme by US standards.

Well then by all means enjoy your gas hikes. You can’t have it both ways, folks. We tried that in 2012. People complained, morale was down, quality of life low, and yet these geniuses in America voted for a second term. We get what we deserve as a nation, but unfortunately, the ignorant or greedy truly hurt the rest of their fellow citizenry in the process.


#20

Will the Saudis, Iranians, Russians, Venezuelans be paying that $10? No, just American producers trying to compete with their hands tied behind their backs. obama shut down the coal industry, and I guess he wants to add oil to that.


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