Apparently oil prices are too low, so President Barack Obama thinks it’s a good idea to slap on a $10 per barrel oil tax. Politico reports:
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.
Based on current prices, this would be a roughly 30% tax on a barrel of oil.
It’s disturbing that the president’s reaction to an industry slashing jobs and cutting investments in a tough business environment is to place a massive tax on the product they produce.
“You’re allowed to export, but we’re also saying is that we’re going to impose a tax on a barrel of oil,”President Obama said at a press conference.
Thankfully this tax is already “dead on arrival” in Congress, said House Speaker Paul Ryan (R-Wis.).
President Obama knows this, but doesn’t care. As Politico notes, “It’s mostly an effort to jump-start a conversation.” And it falls squarely with his mission to end fossil fuel use in the United States.
“It’s really about taxing the energy they don’t like to make President Obama’s favored energy sources,” said Institute for Energy Research President Thomas Pyle.
The president acknowledged this. When questioned by reporters, President Obama said if imposed, the tax “will have further weaned our economy off dirty fuels.”
But his sweeping plan runs straight up against reality. Americans will be using oil and other fossil fuels for decades to come. Until economically viable alternatives are developed that offer the same benefits (convenience, reliability, energy density), fossil fuels will be needed to keep America’s economy moving.
There’s no question we need more revenue to fix America’s broken roads and bridges, but the oil tax covers over the real intention behind the proposal: The radical transformation of America’s energy economy.
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EDITORS NOTE: The featured image of President Obama is by photographer: Andrew Harrer/Bloomberg.