Biden Wants to Raise $90 Billion Dollars by Ending Tax Breaks on Big Oil, Possibly Increasing Costs

Only 2 weeks ago, the Biden administration affirmed that they would not support an increase on the federal gas tax. This gas tax has remained in place since 1990.

However, speaking in Illinois today, Biden vowed to end tax breaks on gas companies. This push to increase tax revenue from large corporations in the gas industry was a part of Biden’s “Build Back Better” plan, which aims to spend trillions of dollars improving the infrastructure of the U.S. by imposing higher tax rates on corporations, Biden plans to use that money on tax rebates for parents, free preschool, community college, as well as 12 weeks of paid medical leave.

In response to spiking gas prices, Biden vows to raise taxes on gas companies $90 billion/year pic.twitter.com/FLWfxU5vQC

— Tom Elliott (@tomselliott) July 7, 2021

Biden believes that corporations are not paying enough in taxes to support the general infrastructure of the U.S.: “Everybody has to pay their fair share. I’m not trying to gouge anybody. They’ve just got to get in the game.”

The President believes that a minimum tax of 15% on various companies that avoid paying taxes could raise $240 billion which can effectively fund all of his infrastructure improvement plans.

U.S. lobbyist groups are preparing to fiercely fight back against this kind of legislation. They seem to believe that high taxes on corporations will directly affect the consumer since it will lead these corporations to hire fewer people and produce fewer jobs. Rachelle Bernstein, the chief tax counsel for a retail lobbyist group said, “We don’t know what’s in that package. But we don’t think it is good to use a corporate tax increase to finance spending.”

Currently, corporations supply a mere 10% of the tax revenue in the U.S., which is minimal compared to the 1940s when corporations supplied nearly 40% of the U.S. tax revenue.

Biden believes this infrastructure plan could receive bipartisan support, saying, “Under a bipartisan infrastructure agreement, we’re going to make the biggest investment in roads and bridges and the construction of the interstate highway system, literally creating millions of good paying jobs.”

Twitter users have attacked Biden’s plan as ineffective, believing gas prices will only get higher through this corporation tax. Greg Price of the Daily Caller mockingly said, “Lets lower gas prices by making it more expensive for energy companies to do business. Totally makes sense.”

Lets lower gas prices by making it more expensive for energy companies to do business. Totally makes sense. https://t.co/lR1Gqz4TpM

— Greg Price (@greg_price11) July 7, 2021

Others added on, saying, “The left does not have a single clue to how economics actually work.”

The left does not have a single clue to how economics actually work. https://t.co/oFiXqLwcKx

— A.D. (@AlexOnDemand32) July 7, 2021

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