In
response to near record prices at the pump and record earnings by oil
companies like Exxon-Mobil, NCPIRG (North Carolina Public Interest
Research Group) is calling on the General Assembly to implement a state
windfall tax on the excessive profits of the oil industry. The revenue
generated from the tax will help fund tax breaks for consumers who
purchase energy efficient products, such as fuel-efficient vehicles and
energy efficient tires.
“The
federal government has refused to protect consumers from price gouging.
Instead, it has given $10.7 billion in tax breaks to the oil industry,
which is now reporting record profits,” stated NCPIRG’s consumer
advocate Rob Thompson. “It’s time for North Carolina to take our
dollars back from big oil and use that money to provide tax breaks for
consumers.”
Unfortunately,
the oil industry has been successful in creating an economy and a
society reliant on oil. Because there are no other choices, oil
companies have been able to justify gouging consumers under the guise
of heightened demand and decreasing supplies. Until we break our
dependence on oil, and monopolistic oil companies, consumers will
continue to pay big bucks at the pump. The windfall tax will facilitate
the transition to energy independence by providing tax breaks for
energy efficient vehicles and products.
“By
making fuel-efficient vehicles more affordable than many gas guzzlers,
North Carolina consumers will have the ability to purchase a vehicle
that saves them money at the pump and at the same time lessens our
dependence on oil,” stated Thompson
Here’s
how the plan will work. Oil companies will be assessed a small
surcharge on their state corporate income tax that will come into
effect when gas prices exceed $1.80 per gallon. The surcharge rises if
prices grow higher. Oil Companies will be discouraged from passing this
levy onto consumers because higher prices at the pump will mean bigger
assessments on their profits.
The
revenue would be used to promote energy independence by funding tax
breaks for North Carolinians who purchase fuel-efficient vehicles and
energy-efficient products. Cars and trucks would be exempt from the
state’s sales tax if they average at least 27.5 miles per gallon as
would energy efficient tires.
North
Carolina would not be the only state to consider such legislation. The
state legislatures in both Alaska and Washington are currently debating
similar proposals.
“The
high price of gas is making life tough for consumers, because we have
no choice - our cars, our economy, our society all run on oil. The only
way to provide consumers with real relief is to break our dependence on
oil and monopolistic oil companies,” stated Thompson. “A windfall tax
on the excessive profits of the oil industry will ease the burden on
consumers by providing tax breaks for energy efficient vehicles.”
