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News Link • TAXES: Federal

President Obama Proposes $10 Per Barrel Tax On Oil In Push For Cleaner Transport


Well, we must admit that the timing for this new tax was perfect from the oil price stand point, as prices are now the lowest they've been in many years. Just imagine how this news would've be received when oil prices peaked a few years ago.

The intention is to gradually phase in the fee in over five years.

"Background on funding the President's plan:

For too long, bipartisan support for innovative and expansive transportation investment has not been accompanied by a long-term plan for paying for it. We need a sustainable funding solution that takes into account the integrated, interdependent nature of our transportation system. Travelers choose between walking, biking, driving, flying, and taking the train; and companies choose between trucks, barges, airplanes and rail lines. So to meet our needs in the future, we have to make significant investments across all modes of transportation. And our transportation system is heavily dependent on oil. That is why we are proposing to fund these investments through a new $10 per barrel fee on oil paid by oil companies, which would be gradually phased in over five years. The fee raises the funding necessary to make these new investments, while also providing for the long-term solvency of the Highway Trust Fund to ensure we maintain the infrastructure we have.  By placing a fee on oil, 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."

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