Consumer Reasonable Energy Price Protection Act of 2005 - Amends the Internal Revenue Code to impose a windfall profit tax on crude oil, natural gas, or fuel which is the product of crude oil or natural gas. Defines "windfall profit" as so much of the profit as exceeds a reasonable profit. Establishes a Reasonable Profits Board to determine reasonable profit. Dedicates the proceeds of such tax to the low-income home energy assistance program.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3664 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3664
To amend the Internal Revenue Code of 1986 to impose a windfall profit
tax on oil and natural gas (and products thereof) and to appropriate
the proceeds for the Low-Income Home Energy Assistance Program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 7, 2005
Mr. Kanjorski introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Appropriations, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose a windfall profit
tax on oil and natural gas (and products thereof) and to appropriate
the proceeds for the Low-Income Home Energy Assistance Program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Consumer Reasonable Energy Price
Protection Act of 2005''.
SEC. 2. WINDFALL PROFITS TAX.
(a) In General.--Subtitle E of the Internal Revenue Code of 1986
(relating to alcohol, tobacco, and certain other excise taxes) is
amended by adding at the end thereof the following new chapter:
``CHAPTER 56--WINDFALL PROFIT ON CRUDE OIL, NATURAL GAS, AND PRODUCTS
THEREOF
``Sec. 5896. Imposition of tax.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed under this
title, there is hereby imposed an excise tax on the sale in the United
States of any crude oil, natural gas, or other taxable product a tax
equal to the applicable percentage of the windfall profit on such sale.
``(b) Definitions.--For purposes of this section--
``(1) Taxable product.--The term `taxable product' means
any fuel which is a product of crude oil or natural gas.
``(2) Windfall profit.--The term `windfall profit' means,
with respect to any sale, so much of the profit on such sale as
exceeds a reasonable profit.
``(3) Applicable percentage.--The term `applicable
percentage' means--
``(A) 50 percent to the extent that the profit on
the sale exceeds 100 percent of the reasonable profit
on the sale but does not exceed 102 percent of the
reasonable profit on the sale,
``(B) 75 percent to the extent that the profit on
the sale exceeds 102 percent of the reasonable profit
on the sale but does not exceed 105 percent of the
reasonable profit on the sale, and
``(C) 100 percent to the extent that the profit on
the sale exceeds 105 percent of the reasonable profit
on the sale.
``(4) Reasonable profit.--The term `reasonable profit'
means the amount determined by the Reasonable Profits Board to
be a reasonable profit on the sale.
``(c) Liability for Payment of Tax.--The taxes imposed by
subsection (a) shall be paid by the seller.''.
(b) Clerical Amendment.--The table of chapters for subtitle E of
such Code is amended by adding at the end the following new item:
``Chapter 56. Windfall profit on crude oil and refined petroleum
products''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 3. REASONABLE PROFITS BOARD.
(a) Establishment.--There is established an independent board to be
known as the ``Reasonable Profits Board'' (hereafter in this section
referred to as the ``Board'').
(b) Duties.--The Board shall make reasonable profit determinations
for purposes of applying section 5896 of the Internal Revenue Code of
1986 (relating to windfall profit on crude oil, natural gas, and
products thereof).
(c) Advisory Committee.--The Board shall be considered an advisory
committee within the meaning of the Federal Advisory Committee Act (5
U.S.C. App.).
(d) Appointment.--
(1) Members.--The Board shall be composed of 3 members
appointed by the President of the United States.
(2) Term.--Members of the Board shall be appointed for a
term of 3 years.
(3) Background.--The members shall have no financial
interests in any of the businesses for which reasonable profits
are determined by the Board.
(e) Pay and Travel Expenses.--
(1) Pay.--Notwithstanding section 7 of the Federal Advisory
Committee Act (5 U.S.C. App.), members of the Board shall be
paid at a rate equal to the daily equivalent of the minimum
annual rate of basic pay for level IV of the Executive Schedule
under section 5315 of title 5, United States Code, for each day
(including travel time) during which the member is engaged in
the actual performance of duties vested in the Board.
(2) Travel expenses.--Members shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with section 5702 and 5703 of title 5, United States
Code.
(f) Director of Staff.--
(1) Qualifications.--The Board shall appoint a Director who
has no financial interests in any of the businesses for which
reasonable profits are determined by the Board.
(2) Pay.--Notwithstanding section 7 of the Federal Advisory
Committee Act (5 U.S.C. App.), the Director shall be paid at
the rate of basic pay payable for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(g) Staff.--
(1) Additional personnel.--The Director, with the approval
of the Board, may appoint and fix the pay of additional
personnel.
(2) Appointments.--The Director may make such appointments
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, and
any personnel so appointed may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule pay
rates.
(3) Detailees.--Upon the request of the Director, the head
of any Federal department or agency may detail any of the
personnel of that department or agency to the Board to assist
the Board in accordance with an agreement entered into with the
Board.
(4) Assistance.--The Comptroller General of the United
States may provide assistance, including the detailing of
employees, to the Board in accordance with an agreement entered
into with the Board.
(h) Other Authority.--
(1) Experts and consultants.--The Board may procure by
contract, to the extent funds are available, the temporary or
intermittent services of experts or consultants pursuant to
section 3109 of title 5, United States Code.
(2) Leasing.--The Board may lease space and acquire
personal property to the extent that funds are available.
(i) Funding.--There are authorized to be appropriated such funds as
are necessary to carry out this section.
SEC. 4. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.
In addition to amounts appropriated pursuant to section 2602 of the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621), there
are hereby appropriated to the Secretary of Health and Human Services
amounts equivalent to the taxes received in the Treasury under section
5896 of the Internal Revenue Code of 1986. Amounts appropriated under
the preceding sentence shall be available for allocation under section
2604(a)(1)(A) of such Act (42 U.S.C. 8623(a)(1)(A)).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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