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$10-A-Barrel Oil Tax Sought by Obama in 2017 Budget

Posted in News on February 4, 2016
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Photographers: Staff

President Barak Obama is proposing a $10-a-barrel tax on oil in his 2017 fiscal year budget. This tax will finance self-driving cars and public transit to reduce our reliance on foreign oil and lead the nation towards alternative fuels.

In a statement from the White House they stated that “by placing a fee on oil the president’s plan crates a clear incentive for the private sector innovation to reduce our reliance on oil and at the same time invest in clean energy technologies that will power our future.”

The new oil tax would be phased in as part of a five-year plan with funds going towards traffic reduction in the amount of $20 billion, with $10 billion for state and local transportation and $2 billion going towards research for clean air vehicles and aircraft.

The proposed tax could increase the price of a gallon of gas by as much as 25 cents, which would be substantial in states like California where gas taxes are already absurdly high.

Since Republicans control the both the Senate and the House of Representatives, this proposal will likely be killed. House Majority Whip Steve Scalise said, “From day one of President Obama’s administration, he has waged open warfare on American energy.” With proposals like this, it’s easy to see why Scalise would say that.

This is just a proposal from the Obama administration and nothing has been approved, but we will update you if this goes anywhere.

Source: Automotive News

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