Washington,
Aug 11, 2005 -
With gas prices skyrocketing out of control in Northeast Ohio and nationwide, Congressman Dennis J. Kucinich (D-OH), today, renewed his fight to pass HR 2070, The Gas Price Spike Act of 2005. The legislation, introduced by Kucinich in May, currently is co-sponsored by 37 Members of Congress.
The bill will address the spike in the price of gasoline by placing a windfall profits tax on oil companies; giving tax credits for the purchase of ultra efficient vehicles; and provide federal grants to reduced mass transit fares.
“Consumers in Northeast Ohio, and nationwide, are being gouged at the pump,” stated Kucinich. “The only thing rising faster than the price of gasoline right now is the skyrocketing profits of the oil companies.”
“Congress can no longer sit on the sidelines and watch as skyrocketing prices continue to take a heavy economic toll on consumers and risks further harming our economy,” continued Kucinich. “Congress must act immediately upon returning in September, and I am renewing my efforts to pass HR 2070, and bring immediate relief to consumers.”
Kucinich’s bill will:
· Institute a windfall profit tax on gasoline and diesel. Such a tax is to be imposed on all industry profits that are above a reasonable profit level. This proposal would not increase the cost of gasoline because this proposal does not tax the price of gasoline. It only taxes excessive profits of refineries and distributors. Any attempt to increase prices to recover the lost revenue in taxes is simply taxed at 100% making the price increase worthless.
· Transfer the revenue from the windfall profits tax to Americans who would buy ultra efficient cars, made in America, with a tax credit. These will be made directly available to the purchaser of a car that traveled over 65 miles on a single gallon of gas. Today average cars get less than 30 miles per gallon.
· Establishes a broad based, far reaching program to promote mass rail transit inter- an intra- city. The bill makes funding available to regional transit authorities to offset significantly reduced mass transit fares during times of gas price spikes.
