Whitfield Unveils Legislation to Lower Gas Prices and Secure America's Energy Independence | News | Congressman Ed Whitfield

News | Congressman Ed Whitfield | United States Representative

Whitfield Unveils Legislation to Lower Gas Prices and Secure America's Energy Independence May 22, 2008 WASHINGTON - U.S. Representative Ed Whitfield is leading an effort in Washington to ease the burden of skyrocketing gasoline prices on Kentucky drivers, introducing legislation which would provide a tax rebate to commuters who have been forced to pay record-breaking prices at the pump and provide a long-term solution to the nation's energy crisis.

"Drivers in the First Congressional District simply cannot afford to spend 60, 80 or even 100 dollars every time they pull up to the pump," Whitfield said. "The time has come to take action and provide American drivers with immediate relief from soaring gas prices as well as a long-term plan to grow our nation's energy supply."

Whitfield introduced the End the Pain at the Pump Act. The bill would immediately provide a refundable tax credit, roughly equivalent to the price of 1/3 of a gallon of gas, for workers who use their personal vehicles to drive to and from work.

Whitfield's bill will give commuters a rebate based on the number of miles they drive to and from work daily. Drivers would multiply the number of miles they commute by a formula that utilizes one-third of the reimbursement rate allowed for driving for charitable work, equating to a tax credit of about $1.12 per gallon of gasoline (or diesel). Using the national average commuting distance of 35 miles, the average commuter would receive a rebate of approximately $377 annually.

In order to receive the rebate, commuters will file the necessary driving information as part of their federal tax return. Drivers will not need to submit receipts, rather they will simply calculate their rebate based on the number of miles they commute to and from work. The legislation will limit relief to middle-class and low-income earners who need it the most. In general, every commuter who was eligible to receive a payment from the Economic Stimulus Package will be eligible for this tax credit.

To provide a long-term solution to the nation's energy crisis, Whitfield's legislation would grow the country's fuel supply. The Congressman proposes opening areas of the Arctic National Wildlife Refuge (ANWR) and the Outer Continental Shelf to environmentally responsible drilling that will yield vast supplies of oil without harming the environment or wildlife. In addition, the Congressman's bill will expedite the approval of refinery permits in order to get more refineries up and running and process more oil.

"Right now, the liberal Democratic leadership in Congress is holding hostage 117 billion barrels of oil and 651 trillion cubic feet of natural gas from the American people," Whitfield said. "These resources are sitting untapped while Kentuckians pay record-breaking prices at the pump. It is time to utilize these resources in an environmentally responsible way for the American taxpayer."

It is estimated that ANWR holds 11-13 billion barrels of oil and the Outer Continental Shelf 8.5 billion barrels of oil and 29.3 trillion cubic feet of natural gas. The normal taxes levied against the production of oil at these two sites will yield approximately $191 billion for the federal government, which will be used to offset the costs of Whitfield's proposal.

The legislation will also require hedge fund managers, who invest huge amounts of money in speculative markets and help drive up the price of fuel, and hedge funds themselves to pay their fair share of taxes. It is widely noted that individuals who manage hedge funds do not pay their fair share of taxes on earned income as compared to other taxpayers, nor do the funds themselves pay a fair share of taxes on their activities as compared to other businesses. By closing this loophole and collecting these taxes, Whitfield's legislation will both bring in additional revenue to the government and avoid increasing the national debt.

Whitfield's proposal comes on the heels of a steady rise in energy costs which has left the national average price for a gallon of gas at a historic $3.75. Diesel prices have also soared, hitting more than $4 a gallon in many parts of the country. This onslaught of rising fuel prices has been brought on by a number of factors. Most notably, limited refinery capacity and the failure of the Congress to allow domestic oil and gas exploration have combined to drive up prices.

"While it is important that we promote conservation of gasoline and energy resources right now, not everyone has the luxury of curtailing their driving, particularly working people who drive back and forth to their jobs every day," Whitfield said. "With experts predicting gasoline prices to reach as high as $4 a gallon this summer, my legislation will make it possible for more Kentuckians to be able to afford to get to work."

Additionally, Whitfield sponsored twelve pieces of legislation today which will diversify the nation's energy portfolio and increase our domestic fuel supply. Included in this American-made energy package are provisions to encourage the development of alternative fuels such as ethanol, coal-to liquids and nuclear power; discourage energy market speculators from driving up the cost of petroleum; repeal Section 526 of the 2007 Energy Bill which bars the government from purchasing abundant alternative fuels; and encourage the building of new domestic refineries.

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