Tomorrow, the president’s budget—and his proposal for an oil tax that would raise gas prices by an average of 24 cents per gallon—will officially go before the American people.
And yet, while it may be endorsement season, not a single leading Democrat has backed the president’s oil tax. Not Clinton or Sanders. Not Reid or Pelosi.
We can’t blame them. Even the White House admits this tax would cause pain at the pump. One senior official conceded, “We recognize that oil companies will likely pass on some of these costs.” (emphasis mine)
But that’s actually not the whole story, according to one independent analysis:
“‘This proposal would trickle down and be a $10 per barrel tax on motorists—or 20 to 25 cents per gallon on refined fuels,’ said Patrick DeHaan, senior petroleum analyst at GasBuddy.com. . . .
“And the impact of the tax would grow over time, DeHaan created a chart to show just how big a toll he expects the tax would take on gasoline consumers through 2023, if it were passed.
“‘As with almost every tax increase on fossil fuels, whether at the state or federal level, it will likely be completely passed to consumers in the years ahead,’ he said.
“And it won’t just impact gasoline prices, but also diesel, jet fuel, heating oil and others, DeHaan said.”
Across the board, this tax is even worse than it looks. Indeed, as Slate notes, “motorists, airline passengers, trucking companies, and the like would eventually end up paying much of the bill.”
We won't let that happen. Instead, we will focus on developing ideas to maximize our energy resources, not tax them and keep them in the ground. That’s how we’ll grow our economy and make America confident again.