Do not think about, write about or deal with human behavior without determining the effects of incentives. It’s not their money, of course they’ll waste it.
Wherein we see that the ultimate liberal, Barack Obama, wants a tax to solve an imaginary problem. The tax, as always, will cause a real problem. Happily, this is hypothetical because the new tax will not pass, but it shows, once again, that liberals don’t know or don’t care about real commerce.
President Obama will propose a $10 fee for every barrel of oil to be paid by oil companies in order to fund clean energy transport system, the White House announced Thursday — although Republicans were quick to declare the plan "dead on arrival" in Congress.
This policy should have bipartisan report because of the sterling record government has with “clean energy.” Yes, sarcasm.
The fee would be phased in over five years and would provide $20 billion per year for traffic reduction, investment in transit systems and other modes of transport such as high-speed rail, the White House said. It would also offer $10 billion to encourage investment in clean transport at the regional level.
Obama is expected to formalize the proposal Tuesday when he releases his final budget request to Congress. However, the proposal immediately faced resistance from Republicans.
"Once again, the president expects hardworking consumers to pay for his out of touch climate agenda,” House Speaker Paul Ryan said in a statement, arguing it would lead to higher energy prices and hurt poor Americans.
Ryan went on to describe Obama’s plan as “dead on arrival” in Congress.
“The good news is this plan is little more than an election-year distraction. As this lame-duck president knows, it’s dead on arrival in Congress, because House Republicans are committed to affordable American energy and a strong U.S. economy," Ryan said.
The White House claims the added cost of gasoline would incentivize the private sector to reduce the reliance on oil and to increase investment in clean energy technology.
The plan also saw opposition from advocates for the oil industry, who warned it would only harm consumers.
“The White House thinks Americans are not paying enough for gasoline, so they have proposed a new tax that could raise the cost of gasoline by 25 cents a gallon, harm consumers that are enjoying low energy prices, destroy American jobs and reverse America’s emergence as a global energy leader,” API President and CEO Jack Gerard:
“On his way out of office, President Obama has now proposed making the United States less competitive.” Gerard said.
When government talks about incentivizing, it means that its friends will benefit and all the rest of us will pay. Hard to parody politicians when they do it themselves.
Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Power Teaching: How to Find Someone to Teach Your Child when the Education System has Failed.”
Cui Bono–Cherchez les Contingencies