President Obama proposed $10 tax per-barrel of oil
President Obama proposed $10 tax per-barrel of oil, press conference official prominent analyst said Thursday.
Energy companies will simply pass along the cost to consumers, but not so fast to say Obama willing to set to propose the tax when he reveals his budget next week, as part of an effort to reduce carbon emissions and generate billions of dollars for mass-transit investments and self-driving vehicles.
The new tax would be phased in over five years, and would apply to both domestic and imported oil.
Per-barrel fee on oil paid for by oil companies, the White House economic adviser Jeff Zients told to sources, “So they’re the ones paying the fee. We recognize that oil companies will likely pass on some of these costs.”
Although the tax is likely to run into political opposition, only could trickle down and be a $10 per barrel tax on motorists,” DeHaan said. “This is not something oil companies are going to absorb.”
In 15-gallon fill-up would cost at least $2.76 more per day. It would also affect people who use heating oil to warm their homes and diesel to fill their trucks. But Obama will also propose a relief fund for families affected by higher energy bills.
So far on nationwide average of $1.77 per gallon gasoline is already cheap compared to historic highs. Environmentalists say a small price increase is worth it to help fight climate change and spur innovation.
Oil stock investors did not appear to be fazed when the news hit Thursday afternoon. Shares of Exxon Mobil, Chevron and Shell all closed up for the day.
