The Obama administration’s proposed $10.25 per barrel oil tax adds up to approximately $32 billion a year, and critics are coming out of the woodwork in defense of both the oil industry and end users who would foot the bill for transportation system reforms-but it may be a moot point since the effort will simply be killed off by Congress.
At the end of the day, this proposal is simply meant to start a discussion and possibly add to the Obama environmental legacy. The proposal has sparked immediate backlash, with critics blasting it as an impossible production tax, the death knell for the already struggling oil industry, and an unfair policy that would render gas at the pumps more expensive for consumers.
Oil tycoon T. Boone Pickens has sensationally dubbed the Obama proposal “the dumbest idea ever.”
The $32 billion tax per year would be consistent with a production tax, tweeted Ed Crooks, the energy editor of The Financial Times.