Obama Proposes $10/Barrel Oil Tax To Fund Government Transportation Investments
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.
In other words, while there may be excess supply of about 3 million barrels daily according to Saudi Arabia, suddenly demand is about to fall off a cliff as the price of oil surges thanks to Obama’s latest brilliant intervention in the “free market”, one which would result in a roughly 30% tax to E&P companies and a 25 cent jump in the price of a gallon of gas.
