Representative Lauren Underwood (IL-14) and Chairman Peter DeFazio (OR-04) introduced the Stop Gas Price Gouging Tax and Rebate Act. This legislation would provide relief to Americans experiencing financial strain caused by rising gas prices by providing monthly advanced tax credits, paid for by taxing the excess profits of large oil and gas companies.
“Every day, I hear from my constituents about how rising gas prices are impacting their quality of life. They deserve relief, which is why I helped introduce this legislation to put money back in the pockets of families to help them afford rising energy costs while holding greedy oil and gas companies accountable,” said Underwood.
As gas prices increased significantly in 2021, the largest oil and gas companies made a combined $205 billion in record profits, according to a new report released by Accountable.
The Stop Gas Price Gouging Tax and Rebate Act would:
- Lower energy costs for Americans with a tax rebate
Households will receive a monthly, advanced, and refundable tax credit that will be phased out for single filers earning more than $75,000 and joint filers earning more than $150,000 per year. Eligibility is identical to criteria used for economic impact (“stimulus”) payments that were included in the American Rescue Plan (ARP). The Treasury Secretary will determine the tax credit amounts based on the revenue raised by taxing oil companies’ excessive profits.
- Tax on excessive profits of oil and gas companies
Big Oil and Gas will pay a one-time, 50 percent windfall profit tax on any adjusted taxable income (ATI) in 2022 that exceeds 110 percent of their average ATI during pre-pandemic levels between 2015-2019.
The Stop Gas Price Gouging Tax and Rebate Act is also cosponsored in the House of Representatives by: Representatives Nanette Barragán (CA-44), André Carson (IN-07); Steve Cohen (TN-09); Jesús “Chuy” Garcia (IL-04); Raúl Grijalva (AZ-03); Pramila Jayapal (WA-07); Mondaire Jones (NY-17); Marcy Kaptur (OH-09); Tom Malinowski (NJ-07); Chellie Pingree (ME-01); Katie Porter (CA-45); Deborah Ross (NC-02); Mark Takano (CA-41); Dina Titus (NV-01), Rashida Tlaib (MI-13); and Peter Welch (VT-At-Large).