Barack Obama Wants to Put a Tax on Oil and Make Oil Companies Pay It

US President Barack Obama 1 photo
Photo: Gage Skidmore
Barack Obama still has a few projects up his sleeve until his term is over. The latest involves a solution to fund clean transportation projects.
The proposition suggests a $10-per-barrel tax on oil, which will have to be paid by oil companies. The plan would involve a gradual introduction of the fee over five years, which means that the tax would gradually be increased to the $10-per-barrel norm.

The purpose of all this is to raise funds to help finance clean transportation solutions. Among these are high-speed railways, autonomous cars, electric vehicles, alternative travel systems, and other solutions meant to reduce emissions.

What the Obama administration has in mind with this proposal is to establish a clear incentive to encourage the development of alternative transportation solutions. The plan relies on the private sector to make innovations in this field so that the United States of America will reduce its reliance on oil. The country is the world’s largest oil consumer.

Since the fee would be placed on oil companies and not on oil consumers, the price of fuel in the USA should not rise dramatically, but from experience, we know that corporations will try to force the tax on the cost of fuel instead.

If it is approved, the proposal is expected to bring an additional $20 billion a year to provide environmentally friendly transport solutions. Another $10 billion per year would be invested in the development of regional travel systems, while $2 billion will go to clean transportation research every year.

This is not Obama’s first Eco-friendly proposition, as the President of the United States of America has set a goal to reduce carbon emissions and the use of fossil fuels on both of his terms. However, some of his administration’s proposals did not pass federal and state levels.

Since both chambers of Congress are controlled by Republicans, the proposition will most likely be ignored. According to Automotive News, some representatives called the new tax “an absurd idea,” and vowed to refuse it.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories