White House criticizes transportation budget over lack of oil tax

The Office of Management and Budget said the president’s advisers would tell him to veto the appropriations package if it passed through Congress with any ideological riders. The bill is being considered by the Senate.

The first criticism levied against the bill is that it doesn’t include Obama’s proposed $10.25-per-barrel tax on oil.

“The administration is disappointed that the bill does not support the president’s vision for a 21st Century Clean Transportation Plan that expands transportation options for American families while reducing carbon emissions, cutting oil consumption, and creating new jobs,” the statement read.

Obama proposed a $10.25-per-barrel tax that would be phased in over five years in his fiscal 2017 budget. It would mean about $320 billion over the next 10 years, if approved.

The tax revenue would be put into the Highway Trust Fund to pay for major transportation infrastructure projects around the country. Some of the money also would be used for clean-energy technology research and development.

Many analysts speculated that the cost of the tax would passed on to the consumer, and a Congressional Research Service report said it would slow economic growth.

No real details were ever proposed about the plan, such as how it would be phased in or how the tax would be applied. A single barrel of oil produces 19 gallons of gasoline and 12 gallons of diesel, and the administration did not explain how the tax would be split up among each product.

The congressional report indicated that transportation prices, home heating prices and the prices of consumer products that contain petroleum would increase. Companies also would be less likely to explore for new sources of oil and would shed workers to deal with the costs, according to the report.

? This article has been corrected to better reflect the Obama administration’s position on the funding bill.