By February 8, 2016 Read More →

Obama oil tax proposal “dead on arrival” – Ryan

“On his way out of office, President Obama has now proposed making the United States less competitive.”

Last week, President Barack Obama dropped a bomb on the American oil industry by proposing a $10 tax on every barrel of production. This week, industry supporters are firing back.


President Barack Obama during a recent tour of Alaska.

Obama on Tuesday plans to send to Congress the spending blueprint for the budget year that begins Oct. 1. The release will come on the day when New Hampshire voters get their say in the first presidential primary of the 2016 race to succeed him.

“Rather than subsidize the past, we should invest in the future,” Obama said in his weekly radio and Internet address, outlining his wish for the increased spending.

House Speaker Paul Ryan, R-Wis., immediately declared the President’s proposed oil tax “dead on arrival.”

Republican Lisa Murkowski, R-Alaska, is the powerful chairman of the Senate Energy and Natural Resources Committee. She says that after years of imposing new restrictions on access in federal areas in Alaska and throughout the country, the President is now apparently proposing yet another way to “damage the nation’s oil production.”

“This is disappointing, but not surprising. Especially at a time of low prices, the President should be looking at ways to make our energy sector more competitive, not pushing new policies that will cost jobs and raise prices,” she said in a statement.


Jack Gerard, president and CEO of the American Petroleum Institute. Photo: Handout.

“Fortunately, with Republicans in charge of Congress, Alaskans need not worry about this becoming law.”

Jack Gerard, American Petroleum Institute CEO, says that on his way out of office, President Obama has now proposed making the United States less competitive.

“The White House thinks Americans are not paying enough for gasoline, so they have proposed a new tax that could raise the cost of gasoline by 25 cents a gallon, harm consumers that are enjoying low energy prices, destroy American jobs and reverse America’s emergence as a global energy leader,” Gerard said in a release.

The API projects that the fee would raise the cost of gasoline by 25 cents a gallon.

“At a time when oil companies are going through the largest financial crisis in over 25 years, it makes little sense to raise costs on the industry,” said Neal Kirby, a spokesman for the Independent Petroleum Association of America.

“This isn’t simply a tax on oil companies, it’s a tax on American consumers who are currently benefiting from low home heating and transportation costs.

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The White House said the $10 fee would be phased in over five years. The revenue would provide $20 billion per year for traffic reduction, expanding investment in transit systems and new modes of transportation like high-speed rail. It would also revamp how regional transportation systems are funded, providing $10 billion to encourage investment that led to cleaner transportation options.

The White House said the tax would provide for the long-term solvency of the Highway Trust Fund to ensure the nation maintains its infrastructure. The added cost of gasoline would create a clear incentive for the private sector to reduce the nation’s reliance on oil and drive investments in clear energy technology.




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