The Obama administration's revised tax on oil would impose $8 billion of costs on the industry, a new study from Congressional Research Service found.
Sen. Lisa Murkowski, R-Alaska, who chairs the Energy and Natural Resources Committee, released the study Tuesday morning ahead of a hearing on the Interior Department's fiscal year 2017 budget request. The study examines a change the administration made to its initial tax, raising it a quarter from $10 to $10.25 per barrel of oil.
"This mathematical sleight of hand may look innocent, but that additional quarter actually raises the cost of the tax or 'fee' by nearly $8 billion," says Murkowski. "Far from a rounding error, this increase would only put an additional burden on America's oil producers, which dampens our domestic energy production."
Murkowski says the change raises the cost of the tax to $319 billion over ten years, based on the research service's latest analysis. She notes that an earlier study on $10 per barrel proposal showed the fee would raise the cost of fuel for consumers.
"Since it is likely that the oil fee would be shifted forward by the oil companies, and since petroleum products enter into many products, consumers will likely see higher prices, not only directly for gasoline and other consumer products, but, in general, for many products to varying degrees," the earlier CRS report read.