• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
The climate news that makes a difference.
No Result
View All Result
The Energy Mix
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance
SUBSCRIBE
DONATE
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance
  FEATURED
BREAKING: Fossil Fuels Fall 25% by 2030, Renewables ‘Keep the Path Open’ in IEA Net-Zero Update September 26, 2023
Green Space Groups Gear for Bigger Fights After Ontario Reverses Greenbelt Land Grab September 25, 2023
Community-Driven Solutions Can Take Back Ontario’s Electricity Future: Torrie September 25, 2023
‘Apex Oil and Gas Lobby’ Undercuts Canadian Sovereignty, Laxer Tells Foreign Influence Probe September 25, 2023
Momentum Builds Toward COP 28 as Countries Back Fossil Fuel Phaseout September 25, 2023
Next
Prev

Consumers Will Pay Any U.S. ‘Border Adjustment Tax’ On Energy

February 8, 2017
Reading time: 2 minutes

Department of Energy/Flickr

Department of Energy/Flickr

 
Department of Energy/Flickr

Americans will pay at the pump and the checkout if the Republican-dominated U.S. Congress proceeds with a plan to adopt a 20% “border tax adjustment”, voices in the oil and retail sectors say, prompting “reservations” from at least one influential GOP Senate leader.

“The border-adjusted tax being considered would eliminate corporate income taxes on U.S. exports, including crude oil and refined products, while imposing a tax as high as 20% on imports,” Reuters explains. Imports include crude oil from both Canada and Mexico, among other suppliers.

  • Be among the first to read The Energy Mix Weekender
  • A brand new weekly digest containing exclusive and essential climate stories from around the world.
  • The Weekender:The climate news you need.
Subscribe

And any border tax on imported crude oil, one oil executive made clear, is going to flow straight through to the price of refined gasoline and diesel.

“Refiners are going to have to pass any incremental costs on to the consumer,” Marathon Petroleum Corporation CEO Gary Heminger told equity analysts in a conference call. “I am very confident that we will be able to do that, just as we did when crude prices were $100-$147.” Marathon imports roughly 700,000 barrels of oil per day, mostly from Canada and Saudi Arabia, according to figures cited by Reuters.

While a handful of Gulf Coast refiners “would be able to take advantage of the reduced costs of exports,” the news agency adds, citing Heminger, “landlocked refiners in the Midwest and import-dependent refiners on the U.S. East Coast would be disproportionately hurt.”

Separately, Reuters reports that the Republican tax plan “faces opposition from retailers, oil refiners, and automakers who say it could raise prices for American consumers.” That outcry prompted influential Senate Finance Committee Chair Orrin Hatch (R-UT), speaking to the U.S. Chamber of Commerce, to question whether a border adjustment tax measure could pass the upper house against his colleagues’ “serious reservations” about it.

Bloomberg reports that “a broad coalition of lobbyists for retailers like Wal-Mart Stores Inc., energy companies, and the auto industry” has launched a campaign to scuttle the proposal.  “The campaign, called ‘Americans for Affordable Products,’ will center on how a border-adjusted tax could increase prices for consumers.”

“This reform is supposed to help all companies, but this particular provision would make it much more regressive on industries like retail, oil and gas, and apparel,” Bloomberg Intelligence analyst Caitlin Webber commented. “It’s going to be an absolutely huge fight.”

Border taxes have previously been suggested as a way for countries that implement domestic carbon taxes to put pressure on those that have not yet done so.



in Canada, Climate & Society, Fossil Fuels, International, Jurisdictions, Legal & Regulatory, Oil & Gas, United States

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

Jason Blackeye/Unsplash
International Agencies & Studies

BREAKING: Fossil Fuels Fall 25% by 2030, Renewables ‘Keep the Path Open’ in IEA Net-Zero Update

September 26, 2023
213
Duffins Agriculture Preserve/North Country House Media via Greenbelt Foundation
Ontario

Green Space Groups Gear for Bigger Fights After Ontario Reverses Greenbelt Land Grab

September 25, 2023
89
UNDP/flickr
Heat & Power

Community-Driven Solutions Can Take Back Ontario’s Electricity Future: Torrie

September 26, 2023
102

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Jason Blackeye/Unsplash

BREAKING: Fossil Fuels Fall 25% by 2030, Renewables ‘Keep the Path Open’ in IEA Net-Zero Update

September 26, 2023
213
Cullen328/wikimedia commons

Manufactured Housing Could Dent the Affordable Housing Crunch with Energy-Efficient Designs

September 20, 2023
388
Wilson Hui/flickr

‘Apex Oil and Gas Lobby’ Undercuts Canadian Sovereignty, Laxer Tells Foreign Influence Probe

September 26, 2023
102
UNDP/flickr

Community-Driven Solutions Can Take Back Ontario’s Electricity Future: Torrie

September 26, 2023
102
Duffins Agriculture Preserve/North Country House Media via Greenbelt Foundation

Green Space Groups Gear for Bigger Fights After Ontario Reverses Greenbelt Land Grab

September 25, 2023
89
United Nations/Twitter

Momentum Builds Toward COP 28 as Countries Back Fossil Fuel Phaseout

September 26, 2023
80

Recent Posts

UniEnergy Technologies/wikimedia commons

Multi-Day Storage Can Deliver Cheaper Grid Reliability, Battery Maker Says

September 25, 2023
64
David Mellis/flickr

Top Food Brands Prepare for Supply Chains Disrupted by Climate Change

September 25, 2023
51
Power lines, Mississauga, Canada

Two First Nations Groups Vie to Build Northern Ontario Power Line

September 25, 2023
76
UN Climate Change/flickr

Don’t Attend COP 28 Unless You’re There to Help, Figueres Tells Oil and Gas

September 24, 2023
471
Jon Sullivan/flickr

Thorold Gas Peaker Plant Won’t Be Built After Unanimous City Council Vote

September 21, 2023
674
Rewat Wannasuk/Pexels

Virtual Power Plants Could Cut Peak Demand 20%, Save U.S. Grid $10B Per Year

September 20, 2023
128
Next Post

Extreme wildfires set to increase by up to 50%

The Energy Mix - The climate news you need

Copyright 2023 © Energy Mix Productions Inc. All rights reserved.

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Proudly partnering with…

scf_withtagline
The Energy Mix - Energy Central
No Result
View All Result
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}