By Pacific Island Times News Staff
Congressman Michael San Nicolas has co-sponsored HR 7099, the "Stop Gas Price Gouging Tax and Rebate Act," introduced by Rep. Peter DeFazio, chairman on the Committee on Transportation and Infrastructure.
H.R. 7099 creates a windfall profit tax within the U.S. tax code on excessive corporate profits from oil production companies and returns the revenue to American consumers in the form of a tax rebate.
In 2021, the largest oil and gas companies made a combined record $237 billion in profits, with ExxobMobil alone realizing a 60 percent gain in profitability from 2019 to 2021.
"H.R. 7099 seeks to re-establish fairness for American gas consumers by securing for them a gas price rebate funded by assessing an excise tax on gas profits that meaningfully exceed pre-pandemic profit levels of oil production companies," San Nicolas said.
The legislation assesses on oil companies a one-time 50 percent excise tax on 2022 adjustable taxable income or ATI , in excess of 110 percent of their average ATI from the pre-pandemic period 2015-2019.
"We have ensured the language contains appropriate provisions for the gas tax rebates to be applied and administered by the appropriate Territorial tax authority so that we can further ensure that the program does not inadvertently exclude the people of Guam," San Nicolas said.
The revenue raised by this legislation will be returned to consumers as a monthly, advanced, and refundable tax credit that will be phased out by income. Eligibility is identical to the criteria used for economic impact payments that were included in the American Rescue Plan.
"While a Jones Act exemption on liquid fuel transports will not in any way reduce fuel prices on Guam, H.R. 7099 will enable our people to be rebated excessive fuel prices nationally, meaningfully offsetting their gas price costs, and providing us with a clear roadmap for similar policy enactment to bring gas price relief to our people," San Nicolas said.