The falling price of oil may benefit consumers but it is hurting some in the energy industry by making some oil wells and projects less economical. President Obama has a plan though that would boost the price of oil. The only problem is, it wouldn't help unemployed oil workers -- it would only make the government richer.
As Reuters reports, the White House is proposing a big tax on oil:
U.S. President Barack Obama will propose a $10-a-barrel fee on oil in his budget plan next week, as the White House seeks to boost the nation's investments in clean transportation projects, the White House said on Thursday.
The fee, which would be paid by oil companies, is likely to fall flat in the Republican-controlled Congress.
West Texas Intermediate oil closed down at $31.68 a barrel on Thursday. It has traded as high as $65 a barrel this year and two years ago was trading above $100 a barrel. The fall in oil prices, partly induced by a glut of OPEC oil, has resulted in tens of thousands of unemployed workers.
If passed, Obama's plan would collect billions of dollars from consumers which would then be plowed into favorite projects of the left such as clean energy and public transit:
"By placing a fee on oil, the President's plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future," the White House said in a statement.
The long-shot proposal for the oil fee, set to be announced in Obama's fiscal 2017 budget plan on Tuesday, would provide nearly $20 billion a year to help expand transit systems across the country and more than $2 billion a year to support research and development of self-driving vehicles and other low-carbon technologies.
Despite the Republican establishment's history of caving to President Obama, this is one proposal unlikely to survive.