Does Congress Need to Oppose the President’s Proposed $10 Per Barrel Tax on Oil? (H. Con. Res. 112)
Do you support or oppose this bill?
What is H. Con. Res. 112?
(Updated June 19, 2019)
This resolution would express Congress’ opposition to President Obama’s proposed $10.25 tax on every barrel of oil. Top Republican members of Congress have already called the proposal "dead on arrival" due to concerns that the tax would raise fuel and heating costs for consumers and cause job losses in the energy industry.
President Obama proposed the tax to fund a “21st Century Clean Transportation System” to upgrade the nation’s transportation networks and reduce emissions.
The resolution further expresses that Congress opposes a new tax being placed on oil. It also calls on the president to consider the detrimental impacts of imposing new taxes on industries that have seen lost jobs, revenue, and production.
As a concurrent resolution, this legislation could be passed by both chambers of Congress if it progresses from the House to the Senate. But even if it's passed by Congress it wouldn't go to the President's desk for a signature because it doesn't have the force of law.
Argument in favor
Imposing a new tax on oil could lead to rising gasoline and heating costs. Oil companies will likely pass the tax on to consumers.
Argument opposed
Congress shouldn’t be opposing the President’s proposed tax increase without proposing solutions for funding needed infrastructure projects.
Impact
Anyone who uses gasoline; employees and employers in the oil and gas industry; other industries that rely on gasoline; Congress; and the President.
Cost of H. Con. Res. 112
A CBO cost estimate is unavailable.
Additional Info
In-Depth: Sponsoring Rep. Charles Boustany (R-LA) introduced this resolution opposing the President’s proposed $10.25 per barrel tax on oil because of its potential negative impacts on oil and gas industry employees and consumers:
“The President wants to fund his environmental agenda on the backs of hard-working Louisiana families in the oil & gas sector, and that is dead wrong. I won’t stand by and watch the President run over these families with a tax that will be passed on at the pump. I encourage my colleagues to join this effort to kill the President’s tax on hard-working families in the oil & gas industry.”
President Obama’s proposed tax increase would be applied only to oil that is imported into the U.S., while domestically produced oil that is exported would be exempt. The director of the White House National Economic Council explained that while energy companies “will likely pass on some of these costs,” the nation’s transportation system is in dire need of re-investment:
“Our transportation system used to be a source of competitive advantage for our global economy, but today we’re at risk of it becoming an Achilles heel… For too long, there’s been strong bipartisan agreement that we need much more infrastructure, but that hasn’t been accompanied by the political will to fund it. People call for more transportation spending, but they never talk about how they’ll pay for it.”
Critics have estimated that that the $10.25-a-barrel tax would increase gasoline prices for consumers by as much as 20 to 25 cents per gallon. That increase would be in addition to existing federal (18 cents per gallon), state (26 cents per gallon on average), and local gasoline taxes.
Media:
- Sponsoring Rep. Charles Boustany, Jr. MD (R-LA) Press Release
- Advocate Capitol News Bureau
- USA Today
- Washington Examiner
- White House (Context - Opposed)
(Photo Credit: Flickr user xcbiker)
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