Obama new tax plan wants to add a tax of $10/barrel of oil for a new transportation spending plan.
While gas prices are low NOW…it probably won’t hurt effect too many people…But when gas/diesel prices rise (which we all expect they will), then it really could take a toll on many people.
Gas taxes in the U.S. are very low compared to Europe, for example. And the tax (as I understand it) are a fixed dollar amount per gallon, not a percentage.
What better way to reduce pollution long term, then a high gasoline tax? It encourages people to buy more economical cars instead of gas-guzzling SUVs.
And we need the money to fix the U.S. aging bridges and highways.
edit: “And the present tax”
Is it per barrel produced? refined? imported? Seems a chicken way of adding a gas/diesel tax, and could shut down US industries and move jobs overseas if done wrong, which it probably will be…
Most oil production has already moved overseas. The proposal is for all barrel of oil imported and domestic. So it shouldn’t effect oil related jobs moving overseas.
And we need the money to fix the U.S. aging bridges and highways.
I suggest you take a look at the past 40 years tax increases and then explain to me where all the money that was dedicated to road construction and bridge repairs went. Most of it went to the general fund…and NOT for their intended use. The same will happen with this tax increase. Not just taxes on the Federal level either…but the State level…same thing. Car registration increases, driver license fees, excise tax (for states that have them)…over the years have all been increased with the intent to fund bridge repair or road maintenance…and instead it went to the general fund to be used for many other things. You do remember the Big-Dig. MA channeled MILLIONS of dollars from general road repair and bridge repair to fund the Big-Dig. There are bridges on I-93 I pray every time I drive over them or under them. Drive under them sometime and you’ll how in disrepair they are.
Simple. Fix the gas tax. And the majority of the oil we use is now produced here, thanks to the well fracturing revolution. We produce over 9 million barrels a day, import around 8. It’s deceptive for the tax to be described as on the oil companies. It would be paid by us. Just a way to conceal that fact.
Artificially manipulating gas prices to try to effect a secondary impact of fuel use reduction will do nothing but cripple an already anemic economy, create more revenue for the politicians to use for pandering to special interest groups, and hurt the poor and the elderly. This is a bad, bad idea. I put it in the same intelligence bucket as the “Cash4Clunkers” idea.
And the majority of the oil we use is now produced here, thanks to the well fracturing revolution.
That’s one business I’d LOVE TO SEE GO AWAY. The environment impact from that is devastating. I hate this idea where a few jobs, but MILLIONS in profits is more beneficial to this country then out countries environment and things like safe drinking water.
Beyond the idea that we need to actually start paying for our infrastructure again, look at what’s happening right now with gas prices being “low.” People are shunning efficient cars and going right back to buying gas guzzling SUVs.
Aside from the obvious shortsightedness that apparently renders these geniuses incapable of understanding that gas prices will go up again, especially if they start consuming it rapidly again, they’re once again using limited resources and polluting other limited resources so that they can feel powerful behind the wheel of a behemoth again.
If this tax slows that down and further encourages the development of electric vehicles so that some day I will have an option to buy an electric car that is both practical and less than 6 figures, I’m all for it.
Look into the facts, there has been very little actual impact on drinking water. Other issues, yes, but the drinking water issue is a fear factor designed to scare folks. So the hundreds of millions of dollars we’re saving today on gasoline and natural gas should go away? You’d prefer $4/gallon gas?
You’re worried about the eventual impact of $10/bbl, but boosting prices $70/bbl is OK?
We’re saving money on gas because Saudi Arabia is playing hardball with OPEC and not falling in line with their price fixing. If that weren’t happening then the frack-derived oil would cost just as much to the end-consumer as middle-eastern oil does now. It’s just that a different group of billionaires would be raking in the lavish profits.
The increase in US oil production is the cause of the price drop. Saudi Arabia is up about 1 million a day, the US is up 4 million. Is Saudi Arabia playing hardball? Certainly, but they’re not the source of the extra oil on the world market. We are.
Look into the facts, there has been very little actual impact on drinking water
I have looked at the facts. It’s obvious you haven’t if you make an uninformed statement like that.
From the article below…
The Environmental Protection Agency (EPA) and United States Geological Survey (USGS) have recently confirmed what residents of Pavillion, Wyoming had been claiming–that hydrofracking had contaminated their groundwater.
I should mention that while I’m against artificially manipulating the price of gasoline with added taxes, I’m also against oil subsidies.
http://priceofoil.org/fossil-fuel-subsidies/
Let the market decide the fair price of oil.
Mike, my statement is 100% correct. I said ‘very little’, not zero. There are tens of thousands of wells under millions of people.
If you had read the report about Pavillion, you would see it has nothing to do with the “fracking” that is being done today in horizontal wells. It is a decades-old gas field, with vertical wells, and there may be problems with wells improperly constructed. That’s a problem, but it has NOTHING to do with modern fracking.
I know this will change nothing, Mike, but PLEASE check your facts before you start insulting people.
That was only ONE article Taxses…there are HUNDREDS more like this one.
While impact to PEOPLE may not be too high…but only because of the isolation of many of the wells…but that doesn’t mitigate the FACT that Fracking IS CONTAMINATING water tables. Those are the FACTS. Deny all you want. I don’t have any ties to the oil industry nor am I effected by fracking. Tend to look at it objectively.
I should add one more thought:
If an additional tax is imposed on oil, we’ll be both using billions of our tax dollars annually to subsidize the oil companies, which drives our tax burden up, but also driving the cost of gasoline up by the added tax. We the taxpayers will be getting hammered on both ends.
I maintain that the best way is to eliminate the subsidies, not pursue the added tax, and let the market decide.
It’s amazing how anyone can support the tax subsidizes for oil companies. Exxon had one of the LOWEST profits in years. They only made about 18 BILLION dollars this year in PROFIT. NOT REVENUE. Yet we give big oil BILLIONS of dollars in subsidies each year.
Who says we’re not a Socialist country?
Exxon 2015 revenue - $269 B
Exxon 2015 profit - $16 B
% profit - 6%
This is a very average % profit, less than many industries, including electronics/computers:
Microsoft 2015 revenue - $94 B
Microsoft 2015 profit - $12 B
% profit - 13%
Twice Exxon’s! Where’s the outrage?
And please learn the facts about oil industry subsidies. Do they exist? Yes. But you’ll be surprised at what are counted as ‘subsidies’. It includes oil purchases for the strategic petroleum reserves, tax reduction for farmers, and low income home energy assistance, along with tax benefits available to many other industries. Get rid of them? Ok, but make sure you do it for ALL industries (hundreds of billions of subsidies), not just energy:
http://www.forbes.com/sites/energysource/2012/04/25/the-surprising-reason-that-oil-subsidies-persist-even-liberals-love-them/#196f4c81e86b
It’s difficult to make out what’s really happening behind the smoke and mirrors or keep up with where the money is under the shells. I just look at all the partisan hoopla and then surf through the cable channels to consider the audiences of Kardashians, Povich, Phil, the Ducks and partisan talk radio to understand who the politicians are talking to… It’s obviously not me. I drive an old beater and have zero debt.