Dem Reconciliation Bill Contains $8 Billion Home Heating Tax
The Democrat multi-trillion dollar tax and spend bill includes an $8 billion energy tax on natural gas production according to projections from the Congressional Budget Office, a tax that will be paid by American households in the form of higher energy bills.
Democrats have included this home-heating tax in the bill despite retail prices for energy surpassing multiyear highs in the United States. Even without the new tax, the U.S. Energy and Information Administration is already issuing warnings that “nearly half of U.S. households that heat primarily with natural gas will spend 30% more than they spent last winter on average.” This tax hike will only exacerbate this energy crisis for American households.
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.
The legislation would impose a regressive tax on oil and gas development based upon emission levels of methane during production, leading to higher energy bills for consumers and higher costs of everyday products. A recent letter to Congress from the American Gas Association warned that the methane tax would amount to a 17% increase on an average family’s natural gas bill.
The new tax would be phased in, beginning at $900/ton of methane emissions in 2023 and rising to $1,500/ton for emissions reported in 2025. The Democrat proposal is modeled off of legislation introduced earlier this year by Sen. Sheldon Whitehouse (D-R.I.).
Americans for Tax Reform opposes the Democrat tax on home heating and urges all members of Congress to oppose President Biden’s multi-trillion dollar tax and spend bill.