Obama Budget Contains $320 Billion Energy Tax Hike
President Obama’s soon to be released 2017 budget proposal contains a $320 billion tax hike over ten years to fund a new “clean transportation” plan. This massive new spending plan calls for a tax increase on the American people – a $10 tax per barrel of oil that will be passed onto drivers in the form of higher prices at the pump.
Obama’s budget will propose over $200 billion in new spending on “bullet trains” and other transit systems, $100 billion on a “climate smart fund,” and $20 billion research into clean transportation including self-driving cars.
The new $10 tax will be phased in over five years. The tax could increase the cost of gas by as much as 25 cents, according to Politico.
Obama’s new tax hike violates the spirit – if not the letter -- of Obama’s “firm pledge” against “any form of tax increase” on any American earning less than $250,000.
Obama has already broken his middle class tax pledge when he signed Obamacare into law, and when he vetoed legislation that repealed 16 Obamacare taxes, including seven that directly raise taxes on middle-income Americans.
This latest proposal continues in this direction and will leave middle class Americans again on the hook for a massive, wasteful new spending program.
More from Americans for Tax Reform
Our domestic oil and gas industry has has been one of America's primary economic engines over the last decade, even through the Great Recession. It even brought us to the brink of energy independence before being hit hard by the change in OPEC policy. Now with the industry fighting for survival, the guys in the White House want to finish the shut down of U.S. Production that Saudi Arabia started by imposing a new tax equal to approximately 1/3 the current price of oil. If our domestic producers are crippled beyond the point where they can make a quick recovery, Saudi Arabia and Russia will have the ability to create a major oil price spike at will.
See the following excerpt from the American Petroleum Institute website below for more on the economic impact of our oil and gas industry.
When vast swaths of the U.S. economy were shedding jobs during the recession, employment growth in oil and natural gas industry professions was one of the bright spots in the economy. Why? Because of large innovations and larger investments in developing energy from shale. In the Marcellus Shale alone, between 2012 and 2013, there was a 40 percent increase in jobs in eight trades (union and non-union members included).
Business consulting firm IHS has taken an in-depth look at the economic impacts of U.S. unconventional oil and natural gas development and found that the development of energy from shale and other tight formations supported 2.1 million jobs in 2012.
With policy choices that support safe and responsible development the full unconventional value chain — the oil and natural gas industry’s upstream, midstream and downstream sectors and energy-related chemical industries — could support 3.3 million jobs by 2020 and nearly 3.9 million by 2025. With the right policies the U.S. is looking at significant job creation from energy developed with hydraulic fracturing and horizontal drilling. This includes the oil and natural gas industry itself, sectors that support the industry with materials, supplies and equipment and areas that benefit as workers and families in these groups pay for housing and buy food, clothing and consumer goods.
- See more at: http://www.americanenergyworks...
Politico is assuming every gallon of oil produces a gallon of gas.