Obama’s proposed oil tax would more than double federal gasoline tax

The Obama administration has proposed a $10.25 tax on the production of crude oil.  While not yet formally introduced as legislation, the tax would be positioned as a “tax on big oil,” and opposition to it could be portrayed as “defending big oil.”

Of course, that is nonsense on a stick.  As an added cost, it would be passed on to consumers at the gas pump, or heating oil truck, not to mention adding to the costs of everything made of feedstock, from Saran Wrap to spatulas.

The Senate Energy and Natural Resources Committee under chairwoman Lisa Murkowski, of oil-producing Alaska, has just completed a report that examines the impact on consumers of this tax hike.  Kyle Feldsher of the Washington Examiner summarizes:

The tax could add between 20-25 cents per gallon, and the report shows that one-time increase would be the largest increase in the gas tax since it was passed in 1932.

The federal gas tax was raised 5 cents in April 1983 and December 1990, the biggest jumps in the climb from 1 cent per gallon in 1932 to the current 18.4 cents per gallon.

Murkowski pointed out that the increase from Obama's proposed oil tax would be bigger than the current federal gas tax.

"The administration's proposal is internally inconsistent and ambiguous, but if it was translated into an excise tax, it would be the largest increase in history," she said.

Obviously, the tax will go nowhere in the GOP Congress, but that misses the point.  It will be trotted out in the campaign as an example of the GOP being beholden to big oil, and an argument that Democrats are being “fiscally responsible.”  The impact of the hike in gasoline costs on poor Americans who drive gas-guzzling beaters will be ignored by the media.

Hat tip: Ace

The Obama administration has proposed a $10.25 tax on the production of crude oil.  While not yet formally introduced as legislation, the tax would be positioned as a “tax on big oil,” and opposition to it could be portrayed as “defending big oil.”

Of course, that is nonsense on a stick.  As an added cost, it would be passed on to consumers at the gas pump, or heating oil truck, not to mention adding to the costs of everything made of feedstock, from Saran Wrap to spatulas.

The Senate Energy and Natural Resources Committee under chairwoman Lisa Murkowski, of oil-producing Alaska, has just completed a report that examines the impact on consumers of this tax hike.  Kyle Feldsher of the Washington Examiner summarizes:

The tax could add between 20-25 cents per gallon, and the report shows that one-time increase would be the largest increase in the gas tax since it was passed in 1932.

The federal gas tax was raised 5 cents in April 1983 and December 1990, the biggest jumps in the climb from 1 cent per gallon in 1932 to the current 18.4 cents per gallon.

Murkowski pointed out that the increase from Obama's proposed oil tax would be bigger than the current federal gas tax.

"The administration's proposal is internally inconsistent and ambiguous, but if it was translated into an excise tax, it would be the largest increase in history," she said.

Obviously, the tax will go nowhere in the GOP Congress, but that misses the point.  It will be trotted out in the campaign as an example of the GOP being beholden to big oil, and an argument that Democrats are being “fiscally responsible.”  The impact of the hike in gasoline costs on poor Americans who drive gas-guzzling beaters will be ignored by the media.

Hat tip: Ace