It looks like President Obama really plans to go out of office this year with a bang. On Thursday, he shed light on his plan to place a tax of $10 per barrel of oil produced in the United States. The tax would be paid by oil companies upfront, but without a doubt be passed down to the consumer. The result being higher oil prices, to in turn foot the bill for affording sustainable transportation and the ability to invest in clean-energy technologies.
But considering the current trading price of crude oil is $31.72 per gallon, the tax is a lot more than expected. But it’s still unlikely that the tax will go through immediately, due to the Republicans who control Congress that wouldn’t see the bill passed if their lives depended on it.
The proposal has already had an impact on the market, with oil dropping 2 percent not even a day after he announced his plan for the tax.
Here are Obama’s plans for how to spend the new tax money:
-Invest $20 billion to reduce traffic and improve commuting. Think about that – that’s more funding than the EPA and Interior Department combined. A lot of this money will go towards alternative transportation options. Think about the Hyperloop being constructed between Los Angeles and San Francisco by billionaire Elon Musk. It’s supposed to completely alter our thinking about traveling long distances entirely. And – it’s 100% green. That’s what this country needs.
-Invest $10 billion into state and local transportation and climate programs.
-Put $2 billion into research for clean vehicles and aircraft.
So while it may not pass if Congress has their way, that’s not exactly what matters. It’s meant to be a vision for the future, and maybe even a way for Obama to implement long-lasting change that continues after he’s departed office. It also encourages voters to elect a Democratic president to finish seeing the process through.
You can watch the video below via YouTube for more information on President Obama’s plans:
Feature Image via Flickr/Jack Thielepape.