Make us your home page
Instagram

PolitiFact.com | Tampa Bay Times

PolitiFact: How much would Barack Obama $10-per-barrel tax on oil raise gas prices?

House Speaker Paul Ryan talks to reporters at the Republican National Committee headquarters last week on Capitol Hill in Washington. House Republicans are unveiling new proposals to repeal and replace President Barack Obama's health care law. The plan being released Wednesday is part of Ryan's so-called Better Way agenda, meant to show how the GOP would govern with a Republican in the White House. [Associated Press]

House Speaker Paul Ryan talks to reporters at the Republican National Committee headquarters last week on Capitol Hill in Washington. House Republicans are unveiling new proposals to repeal and replace President Barack Obama's health care law. The plan being released Wednesday is part of Ryan's so-called Better Way agenda, meant to show how the GOP would govern with a Republican in the White House. [Associated Press]

The statement

Says "President Obama's proposed oil tax would cost consumers 24 cents a gallon."

House Speaker Paul Ryan, Aug. 11 in a tweet

The ruling

In a tweet that was augmented with a bit of animation (a counter with rolling numbers), House Speaker Paul Ryan made this flat declaration of a specific figure. Let's see if it's on the money.

To back Ryan's statement, his office cited a February 2016 article from MarketWatch.com, which reported on President Barack Obama's proposal for a $10 tax on each barrel of oil to pay for "clean" transportation projects such as expanding mass transit. The article said the tax would be paid by oil companies and gradually phased in over five years.

To be clear, the article said the proposal "isn't expected to go far." And in a news release Ryan issued the same day as his tweet, he said the tax is "dead on arrival in Congress."

The MarketWatch article quoted Patrick DeHaan, senior petroleum analyst at GasBuddy, as saying: "This proposal would trickle down and be a $10-per-barrel tax on motorists — or 20 to 25 cents per gallon on refined fuels. To me it's clear: This is not something oil companies are going to absorb."

So, 24 cents is in the range of the analyst's estimate. But it's only one analyst; and his estimate is based on how he thinks oil companies would respond to a $10-per-barrel tax.

What the oil companies would do isn't quite as certain as what Ryan claimed.

A trade group that should know, the American Petroleum Institute, warned the tax would "harm consumers." But it hedged a bit in saying the tax "could" raise the cost of gasoline by 25 cents a gallon.

Economist Nicolas Loris estimated the cost slightly lower, at 22 cents, the Huffington Post said 22 to 24 cents, and the Washington Post said 24 cents. Politico and Forbes said about 25 cents.

One note: The federal government currently imposes a tax of 18.4 cents per gallon of gasoline. But that's a direct tax on gas, not on the oil companies.

So estimates are in the 24-cent range for the $10-per-barrel tax that Obama proposed on oil companies. But it's not a sure thing, if the tax became law, that all of the tax would be passed on to consumers.

We rate the statement Mostly True.

Read more rulings at PolitiFact.com.

PolitiFact: How much would Barack Obama $10-per-barrel tax on oil raise gas prices? 09/01/16 [Last modified: Friday, September 2, 2016 1:32pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Will new laws protect condo owners from apartment conversions and rogue associations?

    Real Estate

    Danny Di Nicolantonio has lived in St. Petersburg's Calais Village Condominums for 33 years. Annoyed at times by the actions, or inaction, of the condo board and property managers, he has complained to the state agency that is supposed to investigate.

    That has left him even more annoyed.

    A bill passed by the Florida Legislature would affect places like The Slade in Tampa's Channelside district, where cCondominium owners have battled a plan to convert homes into apartments.
[Times file photo]
  2. Walmart opens first Pinellas County in-house training academy

    Retail

    Seminole — It had all the hallmarks of a typical graduation: robe-clad graduates marching in to Pomp and Circumstance, friends and family packed together under a sweltering tent and a lineup of speakers encouraging the graduates to take charge of their future.

    New Walmart Academy graduates are congratulated Thursday morning by associates during a graduation ceremony at the Walmart store, 10237 Bay Pines Boulevard, St. Petersburg. The Walmart location is one of the company's training academies where managers complete a one week retail course. David Shultz and Richard Sheehan, both from St. Petersburg, get high fives from the crowd.
[SCOTT KEELER   |   Times]

  3. Lawsuit: Florida contractor fakes death to dodge angry homeowners

    Human Interest

    SEMINOLE — For weeks, Glenn Holland, 67, crawled out of bed before the sun rose to look for a dead man.

    Last year Glenn and Judith Holland said they paid a contractor thousands of dollars to renovate their future retirement home in Seminole. But when they tried to move in on Dec. 14, they said the home was in shambles and uninhabitable. They sent a text message to contractor Marc Anthony Perez at 12:36 p.m. looking for answers. Fourteen minutes later, they got back this text: "This is Marc's daughter, dad passed away on the 7th of December in a car accident. Sorry." Turns out Perez was still alive. Now the Hollands are suing him in Pinellas-Pasco circuit court. [LARA CERRI   |   Times]
  4. Owners to level Port Richey flea market but may rebuild

    Public Safety

    PORT RICHEY — The owners of the recently shuttered USA Flea Market have agreed to demolish all structures on the property, leaving open the possibility of rebuilding the weekend shopping attraction, according to Pasco County officials.

    Pasco County officials shut down the USA Flea Market after it received hundreds of citations for health and code violations.
  5. Kimmins Protégé-Mentor Program a crash course on business know-how

    Business

    TAMPA

    Williams Landscape Management Company was founded 30 years ago with one employee.

    Marisela Linares and Jorge Castro listen to speakers during a workshop at the Kimmins Contracting Corporation on Wednesday, June 7, 2017.   Kimmins Contracting Corporation is handling road construction projects Jeff Vinik's company as he remakes the Channel District. To do some outreach, the company is partnering with three minority contractors, but it's a unique partnership with Kimmins not only giving them the opportunity, but taking them through a series of workshops. It's essentially providing training to the subcontractors so they will be in position to get other contracts.