Democratic congressional candidate Phil Steck announced today that he supports imposing a windfall profit tax on oil companies, which would help to combat the rising cost of gas at the pump. Steck pointed to H.R. 6000, which was recently introduced by Congressman Dennis Kucinich, and is supported by over 60 members of the House, as legislation that is taking big oil interests head on.
“Big oil companies are gouging the American public,” said Steck. “For far too long, lobbyists have been stopping progress and stifling real energy reform. We need Congress to act right now to end this oil company profiteering.”
Steck also said that H.R. 6000, known as the “Gas Price Spike Act,” includes tax credits for the purchase of fuel efficient vehicles and provides federal funding to improve mass transit. Steck said that the individual tax credits for energy efficient vehicles would be worth between $3500 and $6000.
The windfall profit tax would be imposed above what is determined to be ‘reasonable profits’ by creating an independent Reasonable Profit Board that would determine what is reasonable. The tax would be imposed as follows:
• 50% to the extent that the profit on sale exceeds 100% reasonable profit
• 75% to the extent that the profit on sale exceeds over 102% reasonable profit
• 100% to the extent that the profit on sale exceeds over 105% reasonable profit
“New York State has the second highest energy costs in the country, and we are being squeezed in our homes and at the pump,” added Steck. “These are tough economic times because wages are stagnant while everything from food to health care to gas is on the rise. We need to take immediate action to combat this crisis.”
