President Obama escalated his campaign against American consumers' access to affordable energy, with plans announced February 4 for a new $10 per barrel tax on oil, included in his proposed 2017 budget to be sent to Congress the following week.
The tax will be paid by American consumers in the form of higher gasoline prices, costlier air tickets and price increases across the board on consumer products delivered by truck, air and rail. It will also likely destroy hundreds of thousands of good jobs throughout the economy in traditional industries that rely on affordable energy, and those that employ workers to provide the products and services supporting the energy-producing sector.
According to EEIA President Toby Mack, the tax would also put American oil and refined products at a steep competitive disadvantage versus foreign producers like Saudi Arabia, Russia and Iran. "Our producers and the suppliers that support them are already struggling for global market share against countries trying to put U.S. production out of business. This tax would not only be costly to American consumers, but would send countless American jobs to other not-so-friendly countries", Mack said. He added that at todays prices, it would amount to a 30% hike in the cost of domestic oil, and would likely cause American refiners to buy foreign crude oil instead of our own to make products like gasoline and diesel fuel.
"I hope Congress will see the folly of this proposal, and focus instead on policies that create rather than destroy jobs, and that continue to deliver affordable energy to American consumers."