Obama seeks $10-a-barrel oil tax to fund clean transport
Business
Obama seeks $10-a-barrel oil tax to fund clean transport
President Obama wants oil companies to pay a $10 tax for every barrel of oil to pay for much needed infrastructure improvements. Obama will formalize the proposal Tuesday when he releases his final budget request to Congress. The $10 charge, phased in over five years, would be levied on companies — but the costs could be passed on to consumers. The proposal comes amid current low oil prices and is also designed to lure Americans to more climate-friendly fuels.
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.
White House statement
The proposal is expected to be dead on arrival among Republicans, who control Congress and oppose new taxes and Obama’s energy policies. Still, the White House hopes the proposal will drive a debate about the need to get energy producers to help fund efforts to fight climate change. The White House says the fees would be used to increase funding for traffic reduction and new modes of transportation like high-speed rail. Other funds would help cut carbon dioxide emissions within regional transportation systems and integrate self-driving cars.
For too long, bipartisan support for innovative and expansive transportation investment has not been accompanied by a long-term plan for paying for it.
White House statement
