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President Obama Will Propose $10 a Barrel Tax on Oil To Pay For $32 Billion Green Transit Slush Fund

The White House has begun to release details of President Barack Obama’s budget request for Fiscal Year 2017.  Most interesting so far is the announcement that the President will propose a new $10 fee on each barrel of oil.  With oil selling at roughly $30 a barrel, this would amount to a one-third increase in the cost of oil.

The projected $32 billion a year in new revenue would be used to fund “green” transit: $20 billion for mass transit, including high-speed rail and magnetic levitation; $10 billion for streamlining local and state transit planning, a Climate Smart Fund to give bonuses to States that reduce greenhouse gas emissions from transportation, and three new grant programs for “livable” cities, climate-resilient infrastructure, and regional-wide transit projects; and $2 billion for research into “clean” transportation.

There is no chance that the 114th Congress will enact this new $32 billion tax plus green slush fund, so it’s not clear why the President doesn’t follow his tried and true practice and just impose it by executive order.  I doubt that many Democrats in Congress who are running for re-election in 2016 will support it.