- Obama Proposes Oil Tax
- February 12, 2016
- Law Firm: McDonald Hopkins LLC - Cleveland Office
- When President Obama unveils his final budget request to Congress next week, it will include a new $10 per barrel tax on oil. The new tax will fund more than $300 billion in spending on mass transit, high-speed rail and other transportation projects.
While there is zero chance Republicans will embrace the Obama proposal, the proposal could still end up putting many Democrats in a tough political position, particularly in a presidential election year.
The tax could add as much as 25 cents per gallon to the cost of gas. Such a hike would hit any American who drives, including working class and low-income Americans.
President Obama has previously rejected supporting an increase in the gas-tax to fund transportation projects - fearing the political ramifications. In his last year in office, however, President Obama no longer has to worry about the potential political downside to his proposal.