Geoffrey, as you are well aware President Obama continuously claims to support the Middle Working Class, but his actions are often inconsistent with his political speeches. You know that this $10 per barrel tax is just another form of a constantly proposed new ‘carbon tax’, which will ultimately be paid for by average Consumers; i.e. primarily the Middle Class. Yes, Upstream U.S. Oil Producers that aren’t encouraged to export their crude oil to take advantage of this apparent proposed loophole, will pass the increased cost on to Downstream U.S. Refiners, who will be forced to pass the increased tax cost to Retailers-and-Consumers.
With this pattern of possibly attempting to hide new taxes from Consumers, one can sometimes perceive we are being turned into another European Union Country; that normally implements very large Value Added taxes (VAT’s) on most commodities beginning with petroleum motor fuels. VAT’s politically are a safer form of Consumer taxes since they aren’t as transparent as U.S. State & Federal motor fuels taxes, which are posted on every fuel pump in each U.S. service station. Of course the biggest difference currently between EU and the U.S. is that European motor fuels (diesel & gasoline) VAT’s have resulted in EU Consumers paying on average twice the retail price per unit volume of fuel than what U.S. Consumers have paid for decades.
The likelihood of Congress passing a $10 per barrel crude oil carbon tax or VAT is probably zero. Do you think President Obama will try to implement the tax through another Executive Action?