|
Kingston, NY - With gas prices out of control in New York and across the nation, Congressman Maurice Hinchey (D-NY) today called on Congress to quickly approve legislation that would help provide some relief to customers from the high costs at the pump. Hinchey highlighted legislation he is cosponsoring in the House that would provide a gas tax credit for many customers as well as another measure that would force a massive federal investigation into price gouging. Hinchey also discussed his plans for new legislation that would tax oil companies on the record profit levels they are enjoying while average Americans struggle to pay for a tank of gas.
"During a national crisis, the federal government must put its foot down and stop the big oil companies from recklessly, selfishly, and illegally overcharging customers at the pump," Hinchey said. "With gas prices soaring at the pump, people are struggling to afford this basic modern necessity and are concerned about how much worse the situation will get. In rural areas like ours, the lack of broad public transportation options means that driving a car in unavoidable. The Congress must swiftly pass legislation that puts money back in the pockets of customers, brings back gas prices to some semblance of reality, and punishes the greedy oil companies who are awash in record levels of cash."
Hinchey is a cosponsor of the Working Families Gas Tax Credit Act, which provides a $250 non-refundable tax credit ($500 for joint filers) to individuals and families who make $25,000 or less or $50,000 or less, respectively, if the cost of a gallon of gasoline over a taxable year has increased from the previous year by more than twice the rate of inflation. The congressman is also the cosponsor of the GOUGE Act, which protects consumers against extreme overcharges at the gas pump by: imposing penalties on gas retailers who arbitrarily raise prices above the monthly rate of inflation; temporarily suspending new sales of petroleum to the Strategic Petroleum Reserve (SPR); calling on the president to release SPR oil when limited supply cause price spikes; directing the Federal Trade Commission (FTC) to investigate price gouging due to anti-trust practices within the oil industry; and calling on the president to appoint a Pricing and Economic Impact Commission to monitor the effect of gas prices on economic security.
In addition to legislation, Hinchey has also drafted a letter to the FTC and the U.S. Department of Justice calling for a massive, formal investigation into price gouging by oil companies and is circulating that letter among his colleagues in Congress. Even though an FTC investigation is part of the GOUGE Act, Hinchey felt it was important to call for an immediate investigation rather than to wait for legislation, which may very well not move forward in a Republican-controlled Congress. Hinchey also discussed his plans for a bill that would tax the big oil companies for excessive profits they are making as a result of speculation and the resulting inflated gas prices.
"While Hurricane Katrina undoubtedly has had an impact on U.S. oil production, the storm should have no effect on the price of gas already sitting in underground tanks at neighborhood gas stations," Hinchey said. "We are seeing price gouging all across New York and the country and it has to stop. The hurricane was a great tragedy, which is why it is despicable that oil companies are trying to take advantage of Americans at the pump by claiming that the devastating storm really caused prices to jump as high as they have. We need a federal investigation into gouging and we need to make the oil companies pay back the excessive profits they are making off the hard-earned money of the American people."
Oil companies are posting record profits, while customers struggle to find the extra money to pay for the high cost of gas. In 2004, Exxon Mobil had a record setting profit of $25.3 billion -- a 218 percent increase over the previous year. ConocoPhillips saw a 145 percent profit increase last year, while Shell had a 51 percent jump, ChevronTexaco had a 39 percent profit increase, and BP saw a 35 percent spike in profits. Despite these record profits, the Republican-controlled Congress approved an energy bill in July that includes $25 billion in new tax breaks, direct spending, and authorizations for big energy companies.
|
|
