Obama’s proposed oil tax would almost double taxes at the pump

pumpPresident Obama proposed yesterday to tax every barrel of oil produced or imported an additional $10, which translates to nearly twice the federal gas tax Americans pay at the pump. Last year Obama told senior citizens that they wouldn’t see a 2016 cost of living adjustment in their Social Security benefits because of “cheap oil.” The new tax would only be applied to domestic and imported oil, but not to oil exported to other countries. This means other countries would benefit from the president’s largesse, and penalizing Americans in the process.

This new tax would also be equivalent to a 30 percent tax hike on U.S. oil, as it’s currently hovering around $30 per barrel. His new tax proposal is in his latest budget proposal and the Republican-controlled Congress has already indicated this new tax would be dead on arrival. The White House says the tax would provide “$20 billion a year to help expand transit systems across the country and more than $2 billion a year to support the research and development of self-driving vehicles and other low-carbon technologies.”

Critics say Obama is picking winners and losers again using crony capitalism. Currently, many tech giants are testing new vehicles that rely on cameras, maps, motion, software, et al, to create so-called self-driving cars. The self-driving cars are also battery powered, but that electricity comes from a mix of natural gas, coal, and nuclear energy. They also want to use the extra money to fix the country’s infrastructure system.

Thomas Pyle, president of the Institute for Energy Research (IER), said in an emailed statement this is just another example of this administration taxing the energy they don’t to make President Obama’s favored energy sources and companies more profitable. “The revenue generated from a new energy tax is peanuts compared to the revenue, jobs, wages, and economic activity that could be created by simply opening federal lands to energy development.”

Many might remember Obama’s trillion dollar American Recovery and Reinvestment Act of 2009, which went toward infrastructure, jobs, and renewable energy companies (many of which have since declared bankruptcy). That was when Obama had control of both chambers of the Congress. There was also the cash for clunkers program in 2009, which cost taxpayers $24,000 for every vehicle sold. While this did motivate some consumers to trade in and buy more energy-efficient vehicles, the “economic claims have been rendered quite weak.”

The White House also said in a statement that by taxing oil even more, “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 new tax will be announced on Tuesday in Obama’s fiscal 2017 budget. Currently, gas is federally taxed at 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel, not including state and local taxes. Obama’s new tax would nearly double this amount.

Meanwhile, Saudi Arabia has been lowering its crude oil prices over the past few years to drive U.S.-based oil companies out of business, specifically those involved in “fracking.” Most fracking companies have said publicly it was cost-prohibitive to use fracking if oil dipped below $50 a barrel. As a result of Saudi Arabia’s predatory pricing, many fracking companies have gone out of business or folded up their tents altogether.

While ten dollars a barrel may not seem like much, that translates to nearly 24 cents a gallon at the pump, Pyle notes, and it’s the “the very energy source that keeps Americans and our economy moving.” This new tax is also something seniors or those living on fixed incomes will find hard to adapt to; it would also raise home-heating oil prices across the country.

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  • Avatar

    Amber

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    Like a coward yelling insults as they run
    out the door . We can expect a fireworks display of proposals before he exits .

    Speaking for his Party, how handy for the Republicans to have a $10 tax as a Democrat
    election promise .

    The $$Billions he has promised his friends in the global warming cartel has to come from some place . How brave of him .

    Reply

  • Avatar

    JayPee

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    Like a little vengeful child, he wants at least one parting shot. Are the left and demorats proud ?

    The O’Bama experience has shown how utterly counterproductive, destructive and suicidal leftist philosophy is.

    Yet our most prestigious so-called ” education ” institutions spew it endlessly anyway.

    Is it time to abolish academic tenure to rid our country of these parasitic leftist scum ?

    Reply

  • Avatar

    Alexandra

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    Wonder if that’s the reason my son’s SSI benefits aren’t going up this year–I was told no cost-of-living increase.

    Reply

  • Avatar

    Amber

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    Interesting thought JayPee . The tradition public system is going the way of the buggy whip . On line training with some significantly reduced “school” hours will replace cultures of union protectionism , epidemic sick time book offs ,
    and those teachers who come to work with marginal committed to their vocation . The majority of teachers are doing their best, often under challenging circumstances , but the system needs to put the limited resources towards the people who can’t otherwise access a good education .

    You would think that would be right in the wheel house of the people behind green masks … you know lowering someone else’s carbon foot print and all .

    Reply

  • Avatar

    Me

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    Amber you say, “The tradition public system is going the way of the buggy whip .” Is that to mean the way of the horse and buggy? Like the way of the dinosaurs? Err somethang?

    Reply

  • Avatar

    Me

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    And the rest of what you’re saying is a union problem!

    Reply

  • Avatar

    Me

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    [quote name=”Alexandra”]Wonder if that’s the reason my son’s SSI benefits aren’t going up this year–I was told no cost-of-living increase.[/quote]
    When the leftest regressives do that voodoo that they do, they end up killing the goose with the golden eggs that pays for all that stuff. What you see now is just the beginning.

    Reply

  • Avatar

    Me

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    And Amber, did Leo do the on line thang? Ya know to save a few carbon credits err somethang?

    Reply

  • Avatar

    Me

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    Err JayPee, is that like 40 post or more that you can’t think for yourself about because it doesn’t go along with your beliefs? Ya know what you said before?

    Reply

  • Avatar

    Me

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    And Yeah that wrong type of trees story is BS, it’s a distraction, to the story of the science is settled and since it setteled who needs them anymore. So suddenly this magic story appears to keep the gravy train going! Instead of lets git rid of the gate keepers now because we have nothing more to learn from them since they said the science is setteled!

    Reply

  • Avatar

    prestigio

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    a tax on energy
    or its use
    is a tax on everything
    and purely inflationary

    every product or service
    requires it
    most particularly
    as transportation

    Reply

  • Avatar

    John

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    [quote name=”Alexandra”]Wonder if that’s the reason my son’s SSI benefits aren’t going up this year–I was told no cost-of-living increase.[/quote]
    The “you’re not going to get a COLA because of cheap oil” applied to anyone who got SSDI (like your son) or Social Security. That was partly due to scheming by Obama and his fellow Dems, but he got away with it because Republicans let the bill pass. If the bill didn’t pass, the Repubs would get blamed by the MSM.

    As you probably noticed, the price of food and other items hasn’t come down due to the low cost of oil even though most products went up and stayed there when oil was at $130 / barrel. Corporations are using the cheap oil, which they rely on to ship their products, to make even higher profits. Obama is an immediate and is clueless as to how capitalism works.

    Reply

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