Section 1 Short title
This Act may be cited as the “Government Oversight of Unpatriotic Greed in Energy Act” or the “GOUGE Act”.
Government Oversight of Unpatriotic Greed in Energy Act
A BILL
To amend the Internal Revenue Code of 1986 to provide for a gasoline tax holiday, and for other purposes.
Sec. 2 Gasoline tax holiday
In general— Subpart B of part III of subchapter A of chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
“4106. Gasoline tax holiday
“(a) In general—In the case of any gasoline other than aviation gasoline (within the meaning of such term as when used in section 4081) removed, entered, or sold (as the case may be) during the gasoline tax holiday period—
“(1) the rate of tax under section 4081(a)(2)(A)(i) shall be zero, and
“(2) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2) shall be zero with respect to such fuel.
“(b) Gasoline tax holiday period—For purposes of this section, the term “gasoline tax holiday period” means the period—
“(1) beginning on the date of the enactment of this section, and
“(2) ending on December 31, 2022.
“(c) Trust funds held harmless—Any appropriation or transfer under section 9503(b), 9503(e), or 9508(b) shall be made in the same manner (and in the same amount) as if subsection (a) had never been enacted.”
Clerical amendment— The table of sections for subpart B of part III of subchapter A of chapter 32 of such Code is amended by adding at the end the following new item:
Effective date— The amendments made by this section shall apply to gasoline removed, entered, or sold on or after the date of the enactment of this Act.
Sec. 3 Reimbursement to States for gas tax holiday
In general— In the case of the suspension of a gasoline tax by a State during the gasoline tax holiday period, the Secretary of the Treasury (or the Secretary’s delegate) shall pay to such State 100 percent of the amounts which would have been collected with respect to such tax during such period.
Gasoline tax holiday period— For purposes of this section, the term “gasoline tax holiday period” means the period—
beginning on February 24, 2022, and
ending on December 31, 2022.
Sec. 4 Windfall profits tax
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:
“56 Windfall profits on crude oil
“5896. Imposition of tax
“(a) In general—In addition to any other tax imposed under this title, there is hereby imposed on any applicable taxpayer an excise tax in an amount equal to 50 percent of the windfall profit of such taxpayer for any taxable year beginning in 2022.
“(b) Applicable taxpayer—For purposes of this chapter, the term applicable taxpayer means, with respect to operations in the United States, any integrated oil company (as defined in section 291(b)(4)).
“5897. Windfall profit; etc
“(a) General rule—For purposes of this chapter, the term windfall profit means the excess of the adjusted taxable income of the applicable taxpayer for the taxable year over the reasonably inflated average profit for such taxable year.
“(b) Adjusted taxable income—For purposes of this chapter, with respect to any applicable taxpayer, the adjusted taxable income for any taxable year is equal to the taxable income for such taxable year (within the meaning of section 63 and determined without regard to this subsection)—
“(1) increased by any interest expense deduction, charitable contribution deduction, and any net operating loss deduction carried forward from any prior taxable year, and
“(2) reduced by any interest income, dividend income, and net operating losses to the extent such losses exceed taxable income for the taxable year.
“(c) Reasonably inflated average profit—For purposes of this chapter, with respect to any applicable taxpayer, the reasonably inflated average profit for any taxable year is an amount equal to the average of the adjusted taxable income of such taxpayer for taxable years beginning in 2019, 2020, and 2021, plus 10 percent of such average.
“5898. Special rules and definitions
“(a) Withholding and deposit of tax—The Secretary shall provide such rules as are necessary for the withholding and deposit of the tax imposed under section 5896.
“(b) Records and information—Each taxpayer liable for tax under section 5896 shall keep such records, make such returns, and furnish such information as the Secretary may by regulations prescribe.
“(c) Return of windfall profit tax—The Secretary shall provide for the filing and the time of such filing of the return of the tax imposed under section 5896.
“(d) Crude oil—The term crude oil includes crude oil condensates and natural gasoline.
“(e) Businesses under common control—For purposes of this chapter, all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person.
“(f) Regulations—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.”
Clerical amendment— The table of chapters for subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
Sec. 5 Gasoline Windfall Profit Trust Fund
In general— Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
“9512. Gasoline Windfall Profit Trust Fund
“(a) Establishment and funding—There is hereby established in the Treasury of the United States a trust fund to be referred to as the “Gasoline Windfall Profit Trust Fund”, consisting of such amounts as may be appropriated or credited to such trust fund as provided for in this section and section 9602(b).
“(b) Transfers to the Gasoline Windfall Profit Trust Fund—There are hereby appropriated to the Gasoline Windfall Profit Trust Fund amounts equivalent to the taxes received in the Treasury under section 5896.
“(c) Expenditures from Trust Fund—Amounts in the Gasoline Windfall Profit Trust Fund shall be available for making expenditures described in subsection (d).
“(d) Distribution to States
“(1) In general—From time to time, the Secretary shall distribute to the States the amounts available in the Gasoline Windfall Profit Trust Fund.
“(2) Use of funds—Each State which receives amounts pursuant to paragraph (1) shall divide such amounts equally among all registered vehicle owners in the State and distribute such amounts to such vehicle owners as expeditiously as possible.
“(3) State—For purposes of this subsection, the term State includes the District of Columbia, any territory or possession of the United States, and any Indian Tribe.
“(e) Regulations—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations to ensure funds are divided among all registered vehicle owners in the United States as equally as practicable.”
Clerical amendment— The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item:
Sec. 6 FTC regulations, investigation, and enforcement regarding price gouging
Regulations— Not later than 30 days after the date of the enactment of this Act, the Commission shall issue regulations under section 553 of title 5, United States Code, that prohibit any person who sells or offers for sale crude oil, gasoline, or any other petroleum distillate from engaging in price gouging with respect to the price at which such person sells or offers for sale such crude oil, gasoline, or other petroleum distillate.
Investigation—
In general— Not later than 1 year after the date on which the regulations issued under subsection (a) take effect, the Commission shall complete an investigation to determine whether, during the period beginning on January 1, 2022, and ending on December 31, 2022, any oil company violated such regulations (or, during the part of such period before the date on which such regulations take effect, engaged in conduct that would have constituted a violation of such regulations), particularly during the part of such period leading up to and after the Russian invasion of Ukraine on February 24, 2022.
Enforcement required— If the Commission determines in the investigation under paragraph (1) that an oil company violated the regulations issued under subsection (a), the Commission shall take such enforcement action authorized by subsection (c) against such oil company with respect to such violation as the Commission considers appropriate.
Report to Congress— Not later than 60 days after the date on which the Commission completes the investigation under paragraph (1), the Commission shall submit to Congress a report on the results of the investigation.
Enforcement—
Unfair or deceptive acts or practices— A violation of a regulation issued under subsection (a) shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
Powers of Commission— Except as provided in paragraph (3), the Commission shall enforce the regulations issued under subsection (a) in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section, and any person who violates such a regulation shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.
Civil penalties—
In general— Notwithstanding the penalties set forth under the Federal Trade Commission Act, any person who violates a regulation issued under subsection (a) with actual knowledge or knowledge fairly implied on the basis of objective circumstances shall be subject to a civil penalty of not more than 2 times the amount of profits gained by such person through such violation.
Method— The penalties provided by subparagraph (A) shall be obtained in the same manner as civil penalties obtained under section 5 of the Federal Trade Commission Act (15 U.S.C. 45).
Multiple offenses; mitigating factors— In assessing a penalty provided by subparagraph (A)—
each day of a continuing violation shall be considered a separate violation; and
the court shall take into consideration, among other factors, the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require.
Definitions— In this section:
Commission— The term “Commission” means the Federal Trade Commission.
Crude oil— The term “crude oil” has the meaning given such term in subsection (d) of section 5898 of the Internal Revenue Code of 1986, as added by this Act.
Oil company— The term “oil company” means an applicable taxpayer (as defined in subsection (b) of section 5896 of the Internal Revenue Code of 1986, as added by this Act).
Price gouging— The term “price gouging” has the meaning given such term by the Commission in the regulations issued under subsection (a).