House Democrats approved the Inflation Relief Act (HR5376) on Friday, August 12th, on a party-line vote of 220-207. As previously posted, Senate Democrats used the reconciliation process to allow a party-line vote of 51-50 on Sunday, August 7, 2010.
Now having his “best week ever,” he heads to President Biden to sign one of the most important pieces of legislation in his administration.
“[T]The bill would spend about $437 billion on climate, health subsidies and drought relief, raising about $740 billion over ten years,” Eric Wasson reported for Bloomberg News on August 12.
The nonpartisan Congressional Budget Office estimated that an earlier version of the bill would reduce the deficit by $102 billion from a decade ago, a figure that would be boosted by $300 billion in revenue from broader tax audits.
Independent studies say the bill will have some effect on inflation, despite the Democrats’ name. A new Penn Wharton study on the bill found it would reduce inflation by 0.1 percent after five years and have no effect after 2028. In the near term, the effects will have significant pressure on inflation but will be “too small” to measure. Government.
There is a 16.4 percent tax on imported barrels of oil that will increase costs at the pump, Sen. Lindsey Graham (RS.C.) warned Sunday, Aug. 7, on CNN’s State of the Union.
This statement surprised this reporter. The two main taxes in the 2022 Inflation Act are:
- The 15 percent corporate minimum tax for companies making more than $1 billion a year, “was originally projected to raise $313 billion in tax revenue over ten years,” The New York Times reported on August 6.
- It is estimated that a 1 percent excise tax will be imposed on the purchase of shares[J]According to Senate Majority Leader Chuck Schumer (D., N.Y.), who vetoed the bill with Sen. Joe Manchin (D., W.Va.), it cost more than $70 billion over 10 years,” The Wall Street Journal reported in August. 9.
Bloomberg News energy and environment reporter Ari Natter confirmed Graham’s assertion in a source article published on August 1.
Democrats’ 27-year-old plan to import oil violates President Joe Biden’s promise not to raise taxes on anyone making less than $400,000 a year, conservative Americans for Tax Reform said.
Superfund taxes are used to pay for the cleanup of hazardous waste sites. In the year The tax, which was previously set at 9.7 cents a barrel until it expires at the end of 1995, would reflect inflation under a plan unveiled last week by Senate Majority Leader Chuck Schumer and Sen. Joe Manchin.
Comparison with binary infrastructure framework
In the year Seeing that the 1980 reform of inflation (in addition to inflation – see below) needs to be renewed, this reporter contemplates a similar move included in the bilateral infrastructure agreement for infrastructure investment and foundation. Jobs Act signed by President Biden on November 15th.
Unlike the Manchin-Schumer deal, which raised oil taxes by 69 percent (in the next section), the infrastructure framework did not increase gas taxes. Instead, he pointed to an inflation-adjusted increase in the current 18.4 cents-per-gallon federal gas tax, unchanged for three decades, but proving too much for Biden, who has called for its elimination.
[See related post: The Big Taboo of the Senate’s Bipartisan Infrastructure Proposal, June 17, 2021]
“The fee would be paid by importers of U.S. oil and petroleum products that receive crude oil,” according to the Congressional Research Service, which supporters of the tax believe reflect a ‘polluter pays’ mentality,” Bloomberg News reported on July 31.
A similar proposal included in the Build Back Better Act, which was previously passed by the House of Representatives, would have raised nearly $12 billion, according to congressional estimates.
In the year In the Aug. 10 issue of the Congressional Research Service, “Tax Provisions for 2022 Inflation (HR 5376).” [pdf]The oil levy applies to both domestic and imported crude oil, as described in Section 6—Superfund Reinstatement of Superfund, Section 13601. [pg. 20 / 37]:
This provision would restore the Superfund excise tax on domestic crude oil and imported petroleum products to a rate of 16.4 cents per barrel in 2023, adjusted for inflation each year thereafter. When this tax expired at the end of 1995, the previous tax rate was 9.7 cents.
The price of oil is used for domestic crude oil
Of course, the return on oil payments isn’t limited to imported oil, Graham told CNN. Published ‘Summary’ for HR5376 on Congress.gov [Passed Senate (08/07/2022)] Subtitle D – Energy Security states:
The bill would permanently restore the Hazardous Substances Superfund funding rate for certain excise taxes, including an excise tax on domestic crude oil and imported petroleum products that would be adjusted for annual inflation by 16.4 cents per barrel in 2023.
Falling gas prices
Considering that gas prices have fallen steadily since reaching above $5.00 a gallon on June 13, President Biden is ignoring the revised oil bill. The media reported on August 11, 2010 that the national average had dropped below $4.00 per gallon. In 5 months.”
Previous posts On the Depreciation Act:
Related posts On gas taxes and oil charges.
- Biden Proposes Gas Tax Break to Lower Gas Prices June 30, 2022
- Senate Bipartisan Infrastructure Proposal Big Taboo, June 17, 2021
- The Biden administration has announced a February 1, 2021 fuel tax increase
- The Oil Spill Liability Trust Fund was relaunched on February 19, 2018 [Per-barrel fee applied to both imported and domestic oil]
- Obama’s Bold Transportation Fund Proposal May Go Nowhere, February 5, 2016: While President Obama opposes raising the gas tax, he has proposed a $10-per-barrel oil tax on energy companies.