Democrats’ reckless tax and spend spree endorsed by Sen. Joe Manchin (D-W.Va.) includes a $12 billion tax on crude oil that will be paid by consumers in the form of higher gas and energy costs.
With gas averaging $4.21 per gallon across the country and only weeks removed from record-high prices, Democrats have included a 16.4 cents-per-barrel tax on crude oil and imported petroleum products.
The proposal was included in Democrats’ House-passed reconciliation bill last year and estimated to cost $12 billion, according to cost estimates from the non-partisan Joint Committee on Taxation (JCT) .
Gas tax hike on autopilot, pegged to inflation
As if it weren’t bad enough, Democrats have pegged their tax increase to inflation. As inflation increases, so will the level of tax. Here it is straight from the bill text:
ADJUSTMENT FOR INFLATION.—
“In the case of a year beginning after 2023, the amount in paragraph (2)(A) shall be increased by an amount equal to—
‘‘(i) such amount, multiplied by
‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2022’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.”
Violates Biden’s $400,000 Tax Pledge
This tax hike is a clear violation of President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. Officials within the administration have repeatedly admitted taxes that raise consumer energy prices are in violation of President Biden’s $400,000 tax pledge.
Biden’s own Secretary of Transportation, Pete Buttigieg, previously acknowledged that increasing gas taxes would violate President Biden’s pledge.
“The President’s made a commitment that this administration will not raise taxes on people making less than $400,000 a year,” Buttigieg told Bloomberg Radio’s “Sound On” show in February. “And so that rules out approaches like the old-fashioned gas tax.”
Buttigieg’s comments walked back his previous call to raise the gas tax and index it to inflation during confirmation hearings.
Americans for Tax Reform opposes the Democrat oil tax and urges all members of Congress to oppose Democrats’ reckless tax and spend bill.