New IRS Form Proves Obama Lied About Individual Mandate Tax
On Thursday the IRS released a slew of draft 2014 tax forms. The new draft Form 1040 shows a new surtax line has been created for the payment of the individual mandate surtax – see line 61 of the 1040:
President Obama has repeatedly denied that the surtax is in fact actually a tax. The most prominent example was a heated exchange on ABC’s This Week in Sept. 2009, when George Stephanopoulos confronted Obama with a dictionary:
STEPHANOPOULOS: I -- I don't think I'm making it up. Merriam Webster's Dictionary: Tax -- "a charge, usually of money, imposed by authority on persons or property for public purposes."
OBAMA: George, the fact that you looked up Merriam's Dictionary, the definition of tax increase, indicates to me that you're stretching a little bit right now. Otherwise, you wouldn't have gone to the dictionary to check on the definition. I mean what...
STEPHANOPOULOS: Well, no, but...
OBAMA: ...what you're saying is...
STEPHANOPOULOS: I wanted to check for myself. But your critics say it is a tax increase.
OBAMA: My critics say everything is a tax increase. My critics say that I'm taking over every sector of the economy. You know that.
Look, we can have a legitimate debate about whether or not we're going to have an individual mandate or not, but...
STEPHANOPOULOS: But you reject that it's a tax increase?
OBAMA: I absolutely reject that notion. [Transcript]
It was always obvious that the penalty for not complying with Obamacare’s individual mandate was just another surtax:
- The surtax is collected by, and enforced by, the IRS.
- As shown by the newly released draft Form 1040, the surtax is paid as part of normal income tax filing by taxpayers.
- The individual mandate surtax was written into tax law itself by the Obamacare statute.
- Revenues derived from the individual mandate surtax have always been scored by the Congressional Budget Office as tax revenue.
Famously, Chief Justice John Roberts pointed out that the individual mandate surtax is in fact a tax. However, that does not compel conservatives to agree that Obamacare’s individual mandate is Constitutional. The same decision declared the individual mandate unconstitutional under the Commerce Clause. Conservatives can accept that this surtax is a tax increase without accepting the constitutionality of the individual mandate.
The Obamacare individual mandate non-compliance surtax is one of at least seven Obamacare taxes that violate the President’s “firm pledge” not to raise any tax on any American making less than $250,000 per year. Thorough documentation of Obama’s promise can be found here.
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STUDY: San Francisco’s Ban on Flavored Tobacco More than Doubled Youth Smoking
In June of 2018, San Francisco became the first city in the United States to enact a complete ban on all flavored tobacco products. Included in the ban were reduced harm alternatives like e-cigarettes, vapes, and smokeless tobacco. The ban was the result of a ballot referendum, Proposition E, that 68% of voters supported. Nearly three years later, startling new evidence is emerging that demonstrates San Francisco’s flavor ban has had serious consequences for public health and should serve as a clear and urgent warning to other states that are considering similar measures.
Dr. Abigail Friedman, a public health policy expert and researcher at Yale University, published a new study this week in the peer-reviewed Journal of the American Medical Association. Dr. Friedman’s study utilized data from the Youth Risk Behavior Survey, a biennial survey of students, to examine if changes in San Francisco’s smoking rates were associated with the flavored tobacco ban. She looked at data from previous surveys in San Francisco’s schools, as well as other large school districts like Broward County, Florida; Los Angeles, California; New York City, New York; and Philadelphia, Pennsylvania.
Dr. Friedman’s study compared differences-to-differences, meaning she looked at how different San Francisco’s data was from other comparable districts to determine the impact of the 2018 flavor ban. Her findings are remarkable and should serve as a warning to the many other states and localities seeking to implement similar measures. The main findings of Dr. Friedman’s study can be found below, while the full study can be read here.
Key Findings:
- “San Francisco’s ban on flavored tobacco product sales was associated with increased smoking among minor high school students relative to other school districts”.
- The city’s flavored tobacco ban “was associated with more than doubled odds of recent smoking among underage high school students”, compared to similar school districts without a flavor ban.
- From 2012 to 2016, San Francisco’s youth cigarette smoking rates were below the average rates in comparable districts. In 2017, there was not a statistically significant difference between cigarette smoking rates in San Francisco and comparable districts.
- In 2019, youth cigarette smoking rates in San Francisco had risen to 6.2%. In comparable districts, the rate had continued its decade-long downward trend and had fallen to 2.8%, an all-time low.
Scientific evidence shows that e-cigarettes are 95% less harmful than traditional cigarettes and are at least twice as effective at helping smokers quit than nicotine replacement therapies like patches or gum. Youth vaping has significantly decreased since it was declared an “epidemic” in 2018, although there is still work to be done. However, any proposal that would decrease e-cigarette use at the expense of increased cigarette smoking among teenagers or adults would cause much more harm than youth vaping ever could.
The prohibition of flavored vaping products lacks justifying evidence, while there are numerous evidence-based reasons to allow flavors in vapes. Primarily, adult cigarette smokers like flavored vapes and find them more helpful for smoking cessation. A recent study found that smokers who use flavored vapes to quit are 43% more likely to succeed than someone using an unflavored or tobacco-flavored vape. Further, data shows that teenagers are not drawn to vapes because of flavors, with only 5% of underage vapers saying that it was flavors that made them start vaping. Additionally, academic studies have found that teenage non-smokers “willingness to try plain versus flavored varieties did not differ”.
Dr. Friedman’s study is a vital contribution to the scientific field of tobacco control and harm reduction and shows a proposal that is popular across the country has unintended, grave consequences for public health. So far this year, at least thirteen states have considered prohibitions on flavored tobacco products and e-cigarettes that, if enacted, would likely drive-up youth smoking rates across the country. The work of Dr. Friedman should be widely publicized in order to best educate voters and lawmakers on the impacts that these policies have. The evidence is clear; flavor bans do more harm than good and must not be implemented in the interests of public health.
Pictured above is a graph from "A Difference-In-Differences Analysis of Youth Smoking and a Ban on Sales of Flavored Tobacco in San Francisco, California" by Dr. Abigail S. Friedman, depicting Youth Risk Behavior survey results from 2011-2019 in San Francisco and similar school districts. The original graph can be accessed here.
Photo Credit: karosieben
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Biden's ATF Pick Wants $200 Gun Tax
David Chipman, President Biden's pick to lead the ATF, today confirmed his support for a $200 gun tax and a ban on AR-15s.
Future sales of AR-15s would not be allowed, and those now in private possession would need to be sold to the government or the owner would have to submit a $200 tax per gun and per magazine, along with fingerprints, a photograph, and an invasive 13-page application.
This tax is a violation of Biden's pledge against any tax increase on anyone making less than $400,000 a year.
Chipman, nominated by Biden on April 7, confirmed these positions during a Senate hearing today:
"I prefer a system where the AR-15 and other assault weapons are regulated under the National Firearms Act."
Chipman also told the House Judiciary Committee on Sept. 25, 2019:
“One option would be to require the registration of all existing assault weapons in civilian hands under the National Firearms Act, while banning the future manufacture and sale of these firearms."
Chipman and President Biden are in agreement. Biden would force semiautomatic rifle owners to either participate in a gun buyback program, or register their firearm under the National Firearms Act, which requires the payment of the $200 tax. This would extend to AR-15s and other common household rifles. Those who do not comply would face up to 10 years in federal prison, and a potential $10,000 fine.
As detailed on Biden’s campaign website:
Biden will also institute a program to buy back weapons of war currently on our streets. This will give individuals who now possess assault weapons or high-capacity magazines two options: sell the weapons to the government, or register them under the National Firearms Act.
This triggers the $200 tax.
The Biden site also states:
As president, Biden will pursue legislation to regulate possession of existing assault weapons under the National Firearms Act.
In order to register a firearm or a magazine under Biden's plan, you have to send in a 13-page application form with the $200 tax included, your fingerprints, and a photograph of yourself.
Given there are nearly 18 million AR-15s privately owned in the United States, gun owners could potentially be forced to pay a collective $3.6 billion in taxes. This figure doesn’t even include other firearms the left considers “assault weapons” and the additional magazines many gun owners would have to register.
Working families would find themselves incapable of paying for the ability to exercise a constitutional right.
Under the Biden policy, any magazine that holds more than 10 rounds is a “high capacity” magazine. If a household owns two rifles and two magazines, they would be forced to pay a Biden gun tax of $800 total just to keep what they currently own.
Oklahoma Governor Kevin Stitt Signs Bill to Cut Taxes, Improve Public Health
On May 24, 2021 Oklahoma Governor Kevin Stitt signed into law Senate Bill 1078, modifying the definition of tobacco and nicotine-containing products, and exempting certain products from taxation. The new law incentivizes users of highly harmful tobacco products, like cigarettes, to transition to less harmful alternatives. With evidence demonstrating that some nicotine products expose users to significantly less harm than others, SB (Senate Bill) 1078 is a welcome reform to Oklahoma’s tax laws that will improve public health.
Cigarette smoking is the leading cause of preventable death in the United States and the smoking rate in Oklahoma is the 9th highest in the country, according to CDC estimates. Such high rates of cigarette use demonstrated to Governor Stitt and the Oklahoma legislature the necessity of following the science on reduced harm alternatives and enacting this legislation. Increased adult access to these products will decrease cigarette smoking in Oklahoma and save lives.
The state’s previous tobacco tax placed products like nicotine pouches and lozenges, which contain no tobacco, in the same category as tobacco-containing products. By placing safer products in the same category as harmful ones, Oklahoma’s legislature had signaled to consumers that there was no distinguishable difference, while scientific evidence shows otherwise.
According to a harm analysis from the world’s leading researchers on tobacco control, cancer prevention, and public health, cigarettes are the most harmful of all nicotine-containing products. The products exempted from Oklahoma’s tobacco tax, nicotine pouches, lozenges, and gums, are the least harmful of all nicotine-containing products and expose users to 3% or less of the harm cigarettes cause.
E-cigarettes, which the harm analysis estimated to be only 4% as harmful as cigarettes, are already exempt from the Oklahoma’s tobacco tax. SB 1078 ensured that they remain exempt, even amidst pressure to tax vaping from anti-vaping activists and misinformed public health officials. It should be noted that e-cigarettes would save at least 92,000 lives in Oklahoma if a majority of cigarette smokers in the state switched to vaping.
ATR (Americans for Tax Reform) commends the Oklahoma Legislature for passing SB 1078 and thanks Governor Stitt for signing this crucial bill. ATR would also like to extend gratitude to Representative Dustin Roberts who sponsored this bill in the House. Representative Roberts is a signer of ATR’s Taxpayer Protection Pledge and is a reliable and productive defender of taxpayers across the state of Oklahoma. His work on SB 1078 will undoubtedly save lives and this massive success could not have been achieved without his support.
Photo Credit: Trump White House Archives
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Texas Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike
If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills
If President Biden and congressional Democrats hike the corporate income tax rate, Texas households and businesses will get stuck with even higher utility bills.
Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.
Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up.
Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with officials to pass along the tax savings to customers, including at least nine Texas utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.
Working with the Public Utility Commission of Texas, CenterPoint Energy, El Paso Electric Company, Entergy Texas, Oncor Electric Delivery, Quadvest, TXU Energy, Atmos Energy Corp., Southwest Electric Power Company and AEP Texas Inc. passed along tax savings to their customers.
El Paso Electric Company: As noted in this April 2, 2018 Houston Chronicle article excerpt:
El Paso Electric became the first utility in Texas to pass on the benefits of recently enacted corporate tax cuts to their customers by lowering its rates.
El Paso Electric, which serves more than 418,700 customers in Texas and New Mexico, will distribute the $27 million in savings over a year by cutting the average monthly electric bill by about 4 percent. That translates into just under $4 a month for the utility’s average residential customer using 635 kilowatt hours of electricity a month.
El Paso Electric is one of several utilities across the country that have shared the windfall from the corporate tax cuts — which sliced the corporate tax rate to 21 percent from 35 percent — with their customers. In Texas, the Public Utility Commission ordered Texas utilities to calculate their savings and pass them on to ratepayers. In some cases, rates will still go up, but not as much as they might have without the tax savings.
CenterPoint Energy: As noted in this CenterPoint Energy FAQs Sheet:
In order to pass on to customers additional benefits associated with the Tax Cuts and Jobs Act of 2017 (the “TCJA”), on August 1, 2019, CenterPoint Energy (“CNP”) filed with the Texas Railroad Commission and its municipal regulatory authorities rate reduction filings in its Houston and Texas Coast Divisions. The filings follow similar rate reduction filings made by the Company in 2018 to reflect benefits associated with the new federal corporate income tax rate. The rates proposed in the August 1, 2019 filings also include necessary costs to restore service following Hurricane Harvey.
The TCJA refund will be reflected in a customer’s bill as follows:
As a monthly refund over 3 years. Customers will see a separate line item on
their bill called Tax Refund. This refund will begin with bills rendered on or
after January 1, 2020.
Entergy Texas: As noted in this October 26, 2018 Entergy press release:
Entergy Texas, Inc. has reached a settlement agreement with the Public Utility Commission Staff and the intervening parties in its rate case, filed on October 5, 2018. This agreement, pending approval by the Public Utility Commission of Texas, will keep rates low, while continuing to grow the economy by investing in new infrastructure to ensure reliable and cost effective electricity for customers. As part of this plan, Entergy Texas is also passing along substantial savings from federal tax reform directly to its customers. These tax savings, along with investments in infrastructure to reduce outages and improve service, will result in more affordable and reliable energy to customers.
“We are pleased to reach an agreement with the parties in the case that benefits customers and helps ensure reliable and affordable energy for Southeast Texas,” said Sallie Rainer, president and CEO of Entergy Texas. “We are committed to investments that minimize disruptions from outages and give our customers more tools and technology to better control their energy usage.”
Entergy Texas will flow back approximately $200 million in tax savings to customers over a period of up to four years, depending on customer class. This credit will be reflected in a “TCJA Rider” on customer bills. In addition, customer bills will be credited $25 million over a period of up to four years for lower federal tax rates in 2018, which will be reflected in a “Federal Income Tax Credit” Rider. Customers saw these rates in effect on an interim basis starting October 17, 2018. Final implementation of these rates is subject to approval of the settlement by the Public Utility Commission; a ruling from the Commission is expected in the coming months.
Oncor Electric Delivery: As noted in this September 7, 2019 Public Utility Commission of Texas document:
Oncor's annual revenue requirement reduction based on the impacts of the Tax Cuts and Jobs Act of 2017 ("TCJA") shall be $75,042,855 for excess accumulated deferred federal income taxes ("excess ADFIT") and $143,789,502 for annual federal income tax ("FIT') expense, for a total annual revenue requirement reduction of $218,832,357.
Oncor's unprotected excess ADFIT based on the impacts of the TCJA shall be returned to ratepayers over a 10-year amortization period. Signatories reserve the right to seek modification of the amortization period in Oncor's next base-rate case.
Quadvest: As noted by Simon Sequeira, President of Quadvest:
"On behalf of the approximately 30,000 customers Quadvest Utility serves in Southeast Texas, we would like to thank you for your integral part in the development and ultimate passage of the Tax Cuts and Jobs Act of FY2017. The passage of this key piece of legislation has allowed Quadvest to proactively reduce our customers' base water and sewer fees by 26% or almost $90 per year/family."
TXU Energy: As noted in this February 20, 2018 TXU Energy letter:
TXU Energy has been following this proceeding and believes that the Commission has taken a prudent approach to this issue by evaluating each utility's unique situation and working with the utilities to adjust existing base rates via credit, upcoming Distribution Cost Recovery Factors (DCRFs), and Wholesale Transmission Rates that will ultimately flow through the Transmission Cost Recovery Factors (TCRFs).
Given that a significant majority of our retail electric customers have chosen "unbundled" products that directly pass through TDSP charges (including any changes to those charges), the rate adjustments being overseen by the Commission will directly and efficiently flow through to most customers without any additional effort. For the minority of our customers that have chosen "bundled" products, TXU Energy looks forward to working with Commission Staff to evaluate efficient means to provide appropriate value to them.
Atmos: As noted in this January 28, 2019 Denton Record-Chronicle excerpt:
Atmos ratepayers can expect a small, one-time credit on the gas bill next month, a credit meant to settle some of the savings that followed the 2017 corporate tax cut.
Atmos Energy Corp.’s Mid-Texas Division sent a letter to cities across North Texas last week to tell them about its planned distribution of about $5.2 million in tax savings. Residential ratepayers can expect a $4.08 credit with their February bill; and most businesses, a $12.92 credit.
The savings was made possible by the Tax Cuts and Jobs Act of 2017. When the act went into effect on Jan. 1, 2018, it lowered the federal corporate tax rate from 35 percent to 21 percent for Atmos.
Southwest Electric Power Company: As noted in this May 17, 2018 Southwest Electric Power Company press release:
SWEPCO has approximately 184,000 Texas retail customers. All such customers and all classes of customers will be affected by this change. SWEPCO is requesting to change its rates to reflect the impact of the change in federal income tax rates implemented by the Tax Cuts and Jobs Act of 2017, which was passed by Congress late last year. This new federal law reduces the corporate income tax rate from 35% to 21%, and SWEPCO estimates that application of the lower income tax rate will result in an annual approximate $18 million, or 4.9%, overall decrease in base rates for Texas retail customers.
AEP Texas Inc.: As noted in this April 6, 2020 Public Utility Commission of Texas document:
The signatories agreed that, to address the effects of the Tax Cuts and Jobs Act of 2017, AEP Texas will refund a total of $108,020,034, which reflects the following: the difference between the revenues collected under existing rates and the revenues that would have been collected had the existing rates been set using the 21% tax rate enacted under the Tax Cuts and Jobs Act of 2017 until the new rates are implemented; amounts associated with the change in the amortization of protected excess deferred federal income taxes (EDIT) as a result of the Tax Cuts and Jobs Act of 2017 from January 1, 2018 until the date the protected EDIT is included in new rates; and unprotected EDIT associated with the change in tax rates under the Tax Cuts and Jobs Act of 2017.
The amount of $108,020,034 is being refunded through separate riders for distribution and transmission customers. The signatories agreed that AEP Texas will refund $76,531,681 to distribution customers through its proposed income tax refund rider over a one-year period. The rider will be implemented separately for each division. AEP Texas will refund $31,488,353 to transmission customers as a one-time credit through its transmission cost of service.
Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.
Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.
Norquist Discusses Biden's Destructive Tax Hikes on Bloomberg TV
ATR president Grover Norquist discussed the Biden tax increases on Bloomberg's Balance of Power hosted by David Westin.
Norquist detailed the Biden corporate tax rate increase, the Biden capital gains tax hike, and the questionable spending in the Biden "infrastructure" plan.
Click here or below to watch the interview:
Legislators Give Nebraska Taxpayers Much Needed Tax Relief
Nebraska legislators delivered much-needed tax relief in the Cornhusker state by passing a new corporate income tax cut that will give at least 26 million dollars back to taxpayers.
Nebraska's top income tax rate of 7.8 percent was not competitive. It was the highest of any state in the region. South Dakota and Wyoming do not have any corporate income tax, and states like Colorado and Missouri have some of the nation's lowest rates at 4.5% and 4.0%, respectively. By proactively addressing this issue and cutting corporate rates, Nebraska will become a more competitive place to live, invest, and do business in the years to come.
Grover Norquist, President of Americans for Tax Reform, said the following
"I applaud the Nebraska legislature for correctly identifying its previously uncompetitive corporate tax rate and reducing it this session. This legislation will make Nebraska more viable in the regional economy and make it an even more attractive destination for families and businesses. I urge them to continue seeking more pro-growth tax relief to promote a speedy economic recovery by allowing taxpayers and families to keep more of their hard-earned paychecks."
This rate cut is one of several substantial reforms undertaken by the Nebraska legislature this session. The Legislature also passed new laws that will give property owners in Nebraska the ability to make their voice heard on property taxes in their towns. Truth in Taxation legislation, initially enacted in Utah in 1985, brought Utah's 24th-highest property tax burden in the U.S. down to 43rd for primary residences. High property taxes that local citizens do not support are a sign that accountability is lacking. While more transparency for local governments is excellent, Truth in Taxation demands accountability to taxpayers as well – the key to ensuring tax burdens are kept low through public oversight.
Nebraska's Truth in Taxation law will provide taxpayers with a stronger voice in how local property taxes are decided by:
1. Providing the date, time, and location of all public meetings where property tax increases will be decided.
2.Itemizing how much a property taxpayer's tax bill would rise if the proposed tax increase were approved.
3.Requiring that hearings for property tax increases take place during hours when most taxpayers can attend a public meeting.
Alabama Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike
If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills
If President Biden and congressional Democrats hike the corporate income tax rate, Alabama households and businesses will get stuck with higher utility bills.
Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.
Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up.
Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with officials to pass along the tax savings to customers, including at least two Alabama utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.
Working with the Alabama Public Service Commission, Alabama Power and Alagasco (Spire Inc.) passed along tax savings to their customers.
Alabama Power: As noted in this May 1, 2018 AL.com excerpt:
Alabama Power Company customers will see a reduction in their bills because of the federal income tax cut approved by Congress last year, the Public Service Commission announced at its monthly meeting today.
The reduction in 2018 will be for $257 million, about a 9 percent cut, the PSC said.
The cut requires no action by the PSC, which regulates Alabama Power.
The reduction takes effect in July and continues through December.
The Tax Cuts and Jobs Act, signed into law in December, reduced the federal corporate income tax rate from 35 percent to 21 percent effective Jan. 1, 2018.
The three commissioners, all Republicans, said it was good to see consumers benefit from the tax cuts promoted and signed into law by President Trump.
"This is a great day for Alabama consumers and taxpayers," Commission President Twinkle Andress Cavanaugh said.
The commission approved two requests from Alabama Power related to the income tax cut.
One would allow the company to apply up to $30 million of excess federal deferred income taxes this year to Energy Cost Recovery, a factor in rate-setting.
The other request from Alabama Power was to make several changes to the PSC's method of setting rates, called Rate Stabilization and Equalization, or RSE. The PSC said the changes would enable Alabama Power "to mitigate the credit quality impacts" resulting from the Tax Cuts and Jobs Act and preserve rate stability for customers. The changes would allow Alabama Power to increase the equity share of its capital investment, the PSC said.
In conjunction with that second request, Alabama Power committed to no increases in its base rates through 2020 and to credit customers $50 million next year, the PSC said.
Alagasco (Spire Inc.): As noted in this February 2, 2018 AL.com excerpt:
Spire is giving relief to its Alabama customers in the form of rate decreases as a result of the utility being a beneficiary of the Trump tax plan.
Residential customers in Mobile can expect a 4 percent rate decrease while those in Spire's Central Alabama territory, which covers Montgomery and Birmingham, can expect a 3 percent rate decrease, Spire spokeswoman Jenny Gobble told AL.com Friday. The two territories operate under different tariffs and rate structures, which explains the different rate decreases.
Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.
Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.
CLEAN Future Act Lays Groundwork for Backdoor Fracking Ban
Buried within the Democrats’ 981-page "climate" bill are provisions that would lay the groundwork for a nationwide fracking ban, threatening American production of oil and natural gas, U.S. energy independence, and affordable energy for consumers.
Section 623 is a federal power grab stripping states of the right to regulate hydraulic fracturing and could empower EPA to impose a nationwide fracking ban through federal regulation of fluids required for hydraulic fracturing.
Rather than allowing states to regulate fluids from hydraulic fracturing as they currently do, Section 623 would "prohibit the underground injection of fluids or propping agents pursuant to hydraulic fracturing operations" unless operators meet testing and data reporting requirements determined by political appointees at the EPA.
Democrats are using the long-debunked and anti-science notion that fracking is an inherent threat to groundwater in order to seize regulatory authority away from states. This provision would break from the Obama EPA's years-long assessment that federal regulation of fracking's impact on water resources was not required.
A resolution co-sponsored by state oil regulators in Texas and North Dakota in response to the CLEAN Future Act urges the Biden Administration and Congress to oppose the CLEAN Future Act on behalf of oil and gas producing states. In the rollout of the resolution, Texas Railroad Commissioner Wayne Christian labeled the CLEAN Future Act as "nothing more than the Green New Deal in lipstick,” that would "effectively federalize regulation of oil and gas, increasing costs to consumers and our national debt, while harming our energy independence and national security.”
Here is text straight from the resolution:
"The CLEAN Future Act would impose redundant and unneeded regulations on oil and gas drilling, hydraulic fracturing, and production operations currently regulated by the States..."
"The CLEAN Future Act contravenes the principle of cooperative federalism by creating significant regulations at the national level that will limit the ability of states to regulate the exploration and production of oil and gas within their jurisdictions."
Section 625 would allow EPA to classify "produced waters" as "hazardous waste" to prevent fracking, contrary to EPA's own 2019 assessment.
Exploration and production wastes have been regulated as non-hazardous wastes under the Resource Conservation and Recovery Act (RCRA) for decades. EPA's most recent assessment in 2019 reaffirmed this determination by concluding “revisions to the federal regulations for the management of exploration, development and production wastes of crude oil, natural gas and geothermal energy under Subtitle D of RCRA are not necessary at this time.”
Yet section 625 ignores these findings and labels the current classification as a "loophole" and an "arbitrary and needless evasion of regulations." The clear intent of Democrats in this section is to provide a pathway forward for political appointees at the EPA to alter the longstanding classification of produced waters from "non-hazardous waste" to "hazardous waste." Doing so would bring American fracking to a standstill as only 800 wells in the U.S. are equipped to handle hazardous waste compared to 180,000 non-hazardous waste wells, according to EPA data.
Wrongly reclassifying produced waters as hazardous waste would overwhelm the industry's capacity to handle hazardous waste and effectively shut down production.
Both of these provisions are attempts to concentrate the regulatory authority of American energy production at the federal level for the purpose of furthering the political Left's anti-fracking crusade.
Americans for Tax Reform urges Members of Congress to oppose the CLEAN Future Act.
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IRS Hasn’t Completed Mandated Complexity Reports in Almost 20 Years
In defiance of federal law, the IRS routinely fails to complete an annual report on ways to reduce tax complexity. The agency has done the report just twice – in 2000 and 2002.
The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) was a law created to reduce corruption in the IRS, improve taxpayer services, and make the agency more efficient. One of the provisions in the RRA is a directive to complete a tax law complexity report every year. These reports are supposed to contain the IRS's specific recommendations on how to make the tax code easier to comply with.
When the agency completed these reports, the recommendations helped Congress make improvements to the tax code, which in turn made the IRS’s job easier.
There is no reason the IRS cannot complete this task. When asked why they were not doing this report in 2015, the agency was unable to provide an answer. When National Taxpayer Advocate Nina E. Olson asked what it would cost to complete the report, the agency replied that it would just take two full time employees working for about a year:
“In response to a request for an estimate of the resources the IRS would need to produce the complexity report, the IRS’s Research, Analysis and Statistics (RAS) function stated that “as an order of magnitude” a paper that examined the relationship between tax complexity and income tax compliance required about two full time employees working for about a year.”
Two employees working on this report would be a wise use of IRS resources.
The text of the RRA clearly spells out that the IRS "shall" complete this report every year and "shall" include recommendations to reduce the complexity of the code and report provisions, that add undue complexity to tax laws, for repeal or modification:
SEC. 4022. TAX LAW COMPLEXITY ANALYSIS.
In general – The Commissioner of Internal Revenue shall conduct each year after 1998 an analysis of the sources of complexity in administration of the Federal tax laws… The Commissioner shall not later than March 1 of each year report the results of the analysis conducted under paragraph (1) for the preceding year to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. The report shall include any recommendations—
(A) for reducing the complexity of the administration of Federal tax laws; and
(B) for repeal or modification of any provision the Commissioner believes adds undue and unnecessary complexity to the administration of the Federal tax laws.
Meanwhile, IRS employees spend hundreds of thousands of hours per year on union activity.
In fiscal year 2013, IRS employees spent over 500,000 hours on union activity. Somehow, however, they cannot manage the resources to follow the law, particularly a law designed to make life easier for taxpayers.
The IRS has failed to complete this task under both Republican and Democrat administrations. In 1998, when the RRA was passed, lawmakers were attempting to solve corruption and inefficiency that, of course, existed then. It seems, no matter if the IRS is coming from a budget cut or a budget hike, the agency still fails to complete basic tasks.
Photo Credit: Marco Verch Professional Photographer
Wisconsin Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike
If Biden and the Democrats enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills
If President Biden and congressional Democrats hike the corporate income tax rate, Wisconsin households and businesses will get stuck with higher utility bills.
Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.
Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up.
Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with officials to pass along the tax savings to customers, including at least five Wisconsin utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.
Working with the Public Service Commission of Wisconsin, Alliant Energy, Madison Gas & Electric, Superior Water, Light & Power, We Energies, and Wisconsin Public Service Corporation passed along tax savings to their customers.
Alliant Energy, Wisconsin: As noted in this May 26, 2018 Wisconsin State Journal article excerpt:
The average residential customer of Madison-based Alliant Energy can expect some of the highest amounts back, with a one-time credit of $22.92 on their electric bills and $6.99 for natural gas during the June billing cycle, followed by monthly credits of $4.11 for electricity and $1.15 for natural gas. That totals $40 million in refunds for 2018.
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Alliant said its retail electric costs will rise by a total of $194 million in 2019 and 2020 as it brings on the 700-megawatt, natural gas-fueled West Riverside power plant near Beloit in the second half of 2019.
Alliant’s natural gas expenses are projected to rise $24 million over that period.
But rather than raising customer rates, the utility said it will cut costs via fuel savings and income tax reductions.
Madison Gas & Electric: As noted in this As noted in this May 26, 2018 Wisconsin State Journal article excerpt:
Madison Gas & Electric will return a one-time credit of $9.23 to its residential electric customers and $4.80 to natural gas customers by July 31. After that, electric bills will dip about $1.56 a month and gas bills by about $1 a month in 2018, MGE spokesman Steve Schultz said. That totals about $8 million worth of credits, according to PSC calculations.
The money represents excess taxes the companies have been collecting from ratepayers. Utility rates, set in advance, anticipated a 35 percent corporate tax rate. But Congress, in its tax reform package, lowered the rate to 21 percent.
Superior Water, Light & Power: As noted in this May 29, 2018, Superior Telegram article excerpt:
Residential customers of Superior Water, Light & Power will receive a $31.80 lump-sum credit on July bills as a result of savings accrued from the tax law Congress passed last year, according to an order issued Thursday by the Public Service Commission.
Customers in all categories will receive lump-sum and ongoing credits for each provided service. The largest electrical customer will receive a $61,807 lump sum credit and other non-residential customers will receive lump-sum electric credits varying from $13.70 to $3,106 depending on customer classification, according to the PSC order.
SWL&P estimated its total customer credits this year at $1.322 million.
We Energies: As noted in this April 26, 2018, Milwaukee Journal Sentinel article excerpt:
We Energies electric customers will receive a one-time credit in July and a slight decrease in electric rates in subsequent months from a portion of the savings from the company's lower federal corporate tax rate, state regulators decided on Thursday.
The Public Service Commission determined that 20 percent of the immediate savings from the lower tax rate should be passed on to customers.
The remaining 80 percent of the savings will go toward paying down deferred costs that stood at $424.5 million as of Dec. 31 but that are not included in current rates.
"It will be a win-win for our customers — providing an immediate bill credit while also helping to reduce future rate increases," Cathy Schulze, a We Energies spokeswoman, said in an email.
Wisconsin Public Service Corporation: As noted in this December 19, 2019 Public Service Commission of Wisconsin document:
On March, 23, 2019, WPSC requested Wisconsin jurisdictional revenue increases of $48.6 million (4.9 percent) in 2020 and $48.6 million (4.9 percent) in 2021 for its electric operations and revenue increases of $7.2 million (2.4 percent) in 2020 and $7.1 million (2.4 percent) for its natural gas operations. To accomplish an effective rate increase of 4.9 percent in each year for WPSC’s electric operations (WPSC electric), WPSC sought approval to apply $16 million of unprotected tax benefits resulting from the federal 2017 Tax Cuts and Jobs Act (TCJA) for the benefit of customers in 2020, $21 million of 2018 WPSC deferred revenue sharing benefits to customers in 2020, $7 million of 2018 excess fuel collections in 2020, and another $24 million of unprotected tax benefits in 2021. To accomplish an effective rate increase of 2.4 percent in each year for WPSC’s natural gas operations (WPSC gas), WPSC sought approval to apply $7 million of unprotected tax benefits resulting from the TCJA for the benefit of customers in 2020
Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.
Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.
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