President Biden and congressional Democrats imposed a long list of tax increases as part of their “Inflation Reduction Act” that passed in 2022 and went into effect on January 1, 2023. Several of these tax hikes will impact energy costs across the board and clearly violate President Biden’s pledge not to raise taxes to any American making less than $400,000 per year. Biden administration officials have repeatedly admitted that these tax increases are in violation of President Biden’s tax pledge.
Think your household energy bills are high now? Just wait until these three major energy taxes in the Inflation Reduction Act begin to hit your wallet.
$6.5 Billion Natural Gas Tax to Result in Higher Natural Gas Bills
The first is a regressive tax on American oil and gas development. The tax will drive up the cost of household energy bills. The Congressional Budget Office estimates the natural gas tax will increase taxes by $6.5 billion. The American Gas Association has warned that this tax will amount to a 17% increase on an average family’s natural gas bill.
$12 Billion Crude Oil Tax to Result in Higher Gasoline Prices
Democrats are imposing a 16.4 cents-per-barrel tax on crude oil and imported petroleum products that will be passed on to consumers in the form of higher gas prices. As if it weren’t bad enough, Democrats have pegged their oil tax increase to inflation. As inflation increases, so will the level of tax. The non-partisan Joint Committee on Taxation (JCT) estimates the provision will raise $12 billion in taxes.
$1.2 Billion Coal Tax to Result in Higher Electricity Bills
Beginning January 1, 2023, the current excise taxes on coal production will more than double. The tax rate on coal from subsurface mining would increase from $0.50 per ton to $1.10 per ton and that on coal from surface mining would increase from $0.25 per ton to $0.55 per ton. The JCT estimates that this will raise $1.2 billion in taxes that will be passed on to consumers in the form of higher electricity bills.