Proposed Bill Will Provide Grants for Cities to Lower Public Transit Fares During Gas Price Spikes
The Gas Price Spike Act of 2012, which will be introduced to Congress by Representative Dennis Kucinich next year, will also provide tax credits for energy-efficient vehicles and be paid for by taxing oil companies that participate in price gouging.
U.S. Rep. Dennis Kucinich plans to introduce a measure aimed at curbing gasoline price jumps.
He is reacting to fluctuating gas prices which have jumped 30 to 40 cents a gallon at many stations since the start of the week.
“A handful of speculators must not have this much sway over a commodity so critical to the stability of our economy. We need to insulate the American people and the American economy from the effects of our dependence on oil by reducing the need for it,” he said.
When Congress comes back next year, Kucinich will introduce the Gas Price Spike Act of 2012, aimed at discouraging price gouging and reducing demand .
A windfall profits tax would be imposed on oil industry profits on gasoline and diesel above a reasonable rate of return.
Kucinich says the threat of heavy taxation should tell oil companies price gouging will not pay.
There would be a tax credit for purchasing fuel-efficient vehicles.
Money from the windfall profits tax would provide up to a $6,000 tax credit to those buying American-made, fuel-efficient cars. Cars that achieve 65 mpg would get the full credit.
The bill would provide federal grants to lower bus and mass transit fares during times of gas price spikes.
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