President Barack Obama takes victory lap on economy

President Obama, apparently embracing his position as a Democratic president with no elections left to fight, is proposing a hefty new tax on oil to fund cleaner energy and transportation.

“The fee raises the funding necessary to make these new investments, while also providing for the long-term solvency of the Highway Trust Fund to ensure we maintain the infrastructure we have”, it said.

The proposed fee drew swift objections on Thursday from oil-industry groups and congressional Republicans. “Some of that revenue can be used for the investments in basic research and technology that’s going to be needed for the energy sources of the future”, Obama told reporters at a White House news conference. “As this lame-duck president knows, it’s dead on arrival in Congress, because House Republicans are committed to affordable energy and a strong US economy”.

Since its first budget, in 2009, the administration has called for ending most of the tax breaks available to oil and gas companies.

“Once again, the president expects hardworking consumers to pay for his out-of-touch climate agenda”, House Speaker Paul Ryan said in a statement.

The biggest chunk of Obama’s proposed new spending, about $20 billion a year would go to “enhanced transportation options”, especially alternatives to driving and flying.

Even when the House and Senate are controlled by, the same party as the President, the White House encounters difficulty getting the Congress to support proposals and much less when both chambers of Congress are controlled by the opposing party. If approved by the Congress, the additional oil fee would be gradually phased in over five years.

The budget would also use roughly $10 billion per year in revenues for shifting how local and state governments design regional transportation projects.

American oil production is near record highs, but experts say the tax could benefit foreign producers like Saudi Arabia who would look to fill the void left by US producers that cut back.

When he was later asked about why many Americans remain anxious about the economy, he said the U.S. should be “proud” of the progress under his administration.

Republican presidential candidates “talking down the American economy” aren’t helping, Obama said. “It makes it more hard for us to sell exports”, Obama said.