US Eyes $10 Per Barrel Oil Tax

February 5, 2016 Taxation in USA

Pump JackWASHINGTON D.C – The government of the USA hopes that a new tax on oil will extra raise funds for transport technology and infrastructure, while also forcing consumers and businesses to push for more research and development into environmentally friendly technology.

On February 4th the Obama administration announced that a new proposal will soon be made to impose a USD 10 tax per barrel of oil in an effort to encourage businesses to embrace green technology.

The exact details of the tax and how it will be levied will be announced on February 9th as part of the fiscal 2017 budget plan, however it was stated that the tax is intended to be paid by oil companies, and, if enacted, the tax would be phased in over the course of 5 years, and would eventually result in the collection of an extra USD 20 billion in tax revenues per annum.

The revenues from the tax are to be used to fund the development and expansion of transit systems and infrastructure across the USA, and to pay for further research into self-driving cars and green technologies.

It is expected that at least a portion of the cost of the tax will ultimately be passed to consumers, potentially leading to decreased consumption, and even further demand and pressure for the further development of environmentally friendly alternatives.

Photo by Vlastula