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Page added on February 9, 2016
Obama’s $319 Billion Oil Tax Plan Raised to $10.25 a Barrel
President Barack Obama proposed Tuesday to raise $319 billion over the next decade for transportation and other needs with a $10.25-per-barrel tax on crude – up from $10 that was announced last week.
The higher amount, along with other details, were released Tuesday as part of the president’s $4.1 trillion budget request to Congress, including a proposed increase in the oil tax that Republicans swiftly rejected.
While major questions still remain unanswered, including how and when the fee would be charged, the White House envisions collecting the tax from an estimated 4 billion barrels of domestic and imported oil in 2022, once it is fully phased in.
The money would be steered to a “21st Century Clean Transportation Plan to upgrade the nation’s transportation system, improve resilience and reduce emissions,” according to budget documents released Tuesday.
Exported petroleum products would not be subject to the fee, and home heating oil would be temporarily exempted. After a five-year phase in, the fee would apply to all petroleum produced or imported beginning Oct. 1, 2021.
10.9 Million
The White House Office of Management and Budget did not explain the higher fee or share details on the modeling and assumptions it used to estimate money it would raise – as much as $319 billion from fiscal 2017 to fiscal 2026. But the $41 billion estimated to come in during fiscal 2022 would reflect about 10.9 million barrels per day of oil.
The Energy Information Administration projects the U.S. will produce 10.44 million barrels of crude oil per day in 2022.
Republicans in charge of Congress – which decides whether, and how, to act on Obama’s budget blueprint – have already declared his proposed oil fee “dead on arrival.” And it has been angrily denounced by oil industry leaders, who say the fee would be passed on to consumers, hitting poor and middle-income families especially hard.
American Petroleum Institute President Jack Gerard called it an “unprecedented tax hike” in remarks to reporters Monday.
“We know that this tax hike could also have an impact on food prices and all sorts of consumer goods – everything that relies on transportation to get to consumers,” Gerard said in a teleconference. “Only extremists whose goals ignore the concerns of consumers and lower-income families could welcome such an approach.”
National Economic Council Director Jeff Zients told reporters Feb. 4 that oil companies would pay the fee, though it would not be charged at the wellhead. He said the fee would be $10 per barrel.
19 Comments on "Obama’s $319 Billion Oil Tax Plan Raised to $10.25 a Barrel"
JuanP on Tue, 9th Feb 2016 4:57 pm
Blah, blah, blah, 2022 blah, blah, etc., etc. in never never land. This would be a good idea, so it won’t get implemented. The US government has reached a point where it is completely incapable of doing any good, not even by mistake or accident.
Things aren’t getting better, they are getting worse!
bug on Tue, 9th Feb 2016 5:12 pm
Gotta chuckle, repubs hate the poor and the “takers” 24/7/365. And then they are worried and care about them as they “are especially hit hard” as consumers. Oh woe are them. Yeah right.
Apneaman on Tue, 9th Feb 2016 5:27 pm
Bug, it’s a self hate thing.
A New Report Proves Republican Governed Red States Are Economic Parasites
“By now only comatose Americans or fools dependent on Fox News for their information, are aware that states that consistently vote Republican and against their own best interest suck more money from the federal government than Democratic states. It leads one to marvel at the relevance of George Carlin’s saying “never underestimate the power, or danger, of stupid people in large groups.”
http://www.politicususa.com/2015/03/26/report-proves-stupid-red-states-parasites.html
Plantagenet on Tue, 9th Feb 2016 6:59 pm
I agree—its Good to see Obama proposing a gas tax to pay for new carbon-free infrastructure. However I’m surprised to see other posters here bashing the Rs and ignoring the silence from Obama’s fellow Ds. I ask you–WHERE ARE THE Ds who are backing Obama’s plan.
I haven’t heard either Hillary or Bernie come out in favor of Obama’s gas tax/carbon tax—IMHO they should take up this great idea and push it in their campaigns.
Cheers!
roman on Tue, 9th Feb 2016 7:15 pm
You want energy independence capture the methane coming out of BO’s mouth.
Boat on Tue, 9th Feb 2016 7:22 pm
Plant,
Remember the Republican congress? The idea is a nonstarter.
makati1 on Tue, 9th Feb 2016 8:13 pm
All bullshit for the sheeple. Now back to your regular programming … Kim’s latest escapade.
GregT on Tue, 9th Feb 2016 9:43 pm
It really is pathetic listening to Americans who constantly argue between the Dems and the Reps.
They’re both owned by the same upper echelons people! Wake up already. It’s beyond stupid.
Boat on Tue, 9th Feb 2016 10:51 pm
GregT,
Your wrong as usual. Your simply not well read on America. You think the same lobbyist for wind and solar argue for less regulation for coal? Or nat gas?
Train companies cheered when the xl pipeline didn’t make it. Why? Competition. These confrontations are endless and are owned by different entities.
Elections do have winners and losers every 4 years. All you know is what your cult preaches. Don’t be lazy and read more.
Apneaman on Tue, 9th Feb 2016 11:21 pm
Boat what would you know about being “well read”? You have the spelling and grammar of a 4th grader. People who are well read don’t have those problems. You read a few articles that confirm your bias and call yourself well read. When was the last time you read a book? How many have you read? Well read means reading hundreds to thousands of books on eclectic topics, delving into the minutia of each subject, for one’s entire life. Intertube articles are not even close.
sidzepp on Tue, 9th Feb 2016 11:25 pm
The sad thing here is that one hundred years from now no one will know who any of us are, if there are any humanoids to care. So why we may all rant and rave from our little isolated part of the world about the state of affairs, it really doesn’t mean squat in this world we are watching implode.
Boat on Tue, 9th Feb 2016 11:35 pm
apeman.
It is easy to tell when opinion is so flawed by lack of facts when it is so easy to look up the actual information. Most books are opinion and spin so I quit reading them when the internet became available. Cheaper and less hassle.
GregT on Tue, 9th Feb 2016 11:52 pm
“Most books are opinion and spin so I quit reading them when the internet became available.”
What Apnea said above Boat:
“You read a few articles that confirm your bias and call yourself well read.”
It couldn’t be more obvious.
GregT on Wed, 10th Feb 2016 12:13 am
Boat,
You’re wrong as usual. You’re simply not well read on America.
NOT
“Your wrong as usual. Your simply not well read on America.”
If you aren’t willing to communicate at least at a grade 5 level, how do expect anyone to take anything that you say seriously?
Your a comidie uv erors Bote. AKA a moron.
rockman on Wed, 10th Feb 2016 6:35 am
Really not much to debate until all the details come out. But for our local trade experts: doesn’t it violate a number of free trade agreements for the US govt to tax oil imports and product exports?
Bob Owens on Wed, 10th Feb 2016 1:16 pm
There will never be a better time to add an oil tax so we can fix our transport infrastructure. But government is so gridlocked it will never happen. A few years ago when oil was high priced a tax was an insufferable extra burden. Now that oil is low in price, it is a tax we don’t need. So our bridges keep falling down.
Boat on Wed, 10th Feb 2016 2:52 pm
I read about those bridges awhile back. there was a closed bridge like every eight months. These problem bridges included barges hitting a bridge, flood damage, railroad bridges and bridges for pipelines. As usual the hype exceeds the problem.
Apneaman on Wed, 10th Feb 2016 3:37 pm
Another fact free dismissive hand wave from Boat. It’s a substitute for an actual argument. Where are your facts boat?
makati1 on Wed, 10th Feb 2016 7:05 pm
Bridges not repaired after accidents are just another sign of the decline, Boat.
The ‘oily tax’ will never be spent to repair, only destroy. That is all America is good at anymore. Destroying: freedoms, families, economies and countries. And, working to destroy the world to “save it”.