Proposed $10/Barrel Tax on Oil Could Slow Economic Growth: CRS Memo to Senate Committee

Congressional Research Service
http://1.usa.gov/1Se4MXw

[E&E News PM article by Ariel Wittenberg, sub. req’d] President Obama’s proposed $10-per-barrel oil fee could slow economic growth, the nonpartisan Congressional Research Service wrote in a memo to the Senate Energy and Natural Resources Committee.

The Obama administration announced its proposal last week to charge oil companies to pay for highway programs and clean transportation technologies…

[Daily Caller] President Barack Obama’s budget plan for a $10 tax on every barrel of oil has already run into intense opposition in Congress as lawmakers look to prevent the president from imposing a $65 billion tax hike on Americans.

Lawmakers are reacting to two new reports detailing how Americans would likely be made worse off by a $10 tax on barrels of oil. Energy experts argue the tax would be passed onto consumers, making energy more expensive.

The Congressional Research Service (CRS) and the free market Institute for Energy Research (IER) have both put out research on what taxing oil would do to energy prices, and the outlook is not good for anyone who relies on oil — hint, that’s everyone!

“Since it is likely that the oil fee would be shifted forward by the oil companies, and since petroleum products enter into many products, consumers will likely see higher prices, not only directly for gasoline and other consumer products, but, in general, for many products to varying degrees,” CRS reported Tuesday.

 

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