President Obama Explained Idea on Barrel Oil Tax


Time: 9:37 p.m. CEST

President Barack Obama stopped at the James Brady press briefing room on Friday to briefly explain and deliver statistics on the economy, data showing the drop of the unemployment rate bellow five percent, and number of jobs added to the U.S. economy last month.

But, when questioned, Obama explained the idea of the White House to introduce the barrel oil tax. Obama’s suggestion is to impose the tax on imported and exported oil incorporated in the fiscal year 2017.

Obama said that, “The basic proposition is that now gas is $1,80 and gas prices are expected to be low for a while, for a foreseeable future. That overall, can be a good for the economy, but, what it also important is that we use this period where the gas prices are low to accelerate the transition to a cleaner-energy economy because we know that is not going to last. Every one of us had have seen cycles when gas prices go down and pop back up. “

Further Obama added that, “The idea here is to if we say to oil companies, which by the way got the significant benefit in the omnibus, allowed them for the first time to export oil, up until that point domestic producers could not export. If we say to them now, oil companies, all right we know that you have retool, the prices are low now, you are allowed to export, but what we are also saying is that we are going to impose tax on barrel of oil, imported, exported. “

The justification, as the President explained, is that, “some of that revenue can be used for transportation, for the investments, basic research and technology that is going to be need for energy sources of the future, than 10, or 15, or 20 years from now, we are going to be in a much strong position. When oil getting starts tight again, prices going high again, we are going to further wind our economy of the dirty fuels, we would have meet not just environmental progress, we will have much stronger economy, much stronger infrastructure, creating a jobs of the future. “

President Obama is sure when looking back in time, “We are going to look back and said, that was a smart investment, decision for us to make. The point is to that when the gas prices are low and they would be low for some time, so it is not going to be disruptive factor of the economy.”

Obama’s administration plans to introduce the idea for the tax, or “fee” of $10 per barrel oil tax in Obama’s final budget proposal for fiscal year 2017, which it would introduce on Tuesday.

President Obama allowed several questions on economy, before the White House press secretary Josh Earnest started the briefing. In an opening statement to the correspondents Obama introduced latest numbers on economy.

“America’s business created another 151.000 jobs last month. After reaching 10 percent in 2009, unemployment rate has fallen to 4,9 percent, even as more Americans join a job market last month, the unemployment rate has fallen bellow 5 % for the first time in eight years. All told in the past six years, our business has created 14 million new jobs. Seventy-one straight months our private sector job growth extends the longest streak on record, ” Obama explained.

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