GOUGE Act
Bill: H.R.7751 | Sponsor: Rep. Norcross, Donald (D-NJ)
Policy area: Taxation

Summary:
Government Oversight of Unpatriotic Greed in Energy Act or the GOUGE Act
This bill allows an exemption from the excise tax on gasoline, other than aviation gasoline, and the Leaking Underground Storage Tank Trust Fund financing rate, for the period beginning on the enactment of this bill, and ending on December 31, 2022 (gasoline tax holiday). It provides full reimbursement to states for any revenues lost due to the gasoline tax holiday.
The bill also imposes an excise tax equal to 50% of the windfall profit of certain large oil and gas companies, beginning in 2022.
The bill requires the Federal Trade Commission (FTC) to issue regulations prohibiting any sellers of crude oil, gasoline, or other petroleum distillate from engaging in price gouging. The FTC must investigate whether any oil company violated such prohibition during 2022, particularly during the period leading up to and after the Russian invasion of Ukraine on February 24, 2022, and impose specified civil penalties.

To amend the Internal Revenue Code of 1986 to provide for a gasoline 
                  tax holiday, and for other purposes.

    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 ``Government Oversight of Unpatriotic 
Greed in Energy Act'' or the ``GOUGE Act''.

SEC. 2. GASOLINE TAX HOLIDAY.

    (a) 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:

``SEC. 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.''.
    (b) 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:

``Sec. 4106. Gasoline tax holiday.''.
    (c) 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.

    (a) 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.
    (b) Gasoline Tax Holiday Period.--For purposes of this section, the 
term ``gasoline tax holiday period'' means the period--
            (1) beginning on February 24, 2022, and
            (2) ending on December 31, 2022.

SEC. 4. 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 PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; etc.
``Sec. 5898. Special rules and definitions.

``SEC. 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)).

``SEC. 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.
In the case of any applicable taxpayer which is a foreign corporation, 
the adjusted taxable income shall be determined with respect to such 
income which is effectively connected with the conduct of a trade or 
business in the United States.
    ``(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.

``SEC. 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.''.
    (b) 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:

            ``Chapter 56. Windfall Profits on Crude Oil.''.

SEC. 5. GASOLINE WINDFALL PROFIT TRUST FUND.

    (a) 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:

``SEC. 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.''.
    (b) 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. 9512. Gasoline Windfall Profit Trust Fund.''.

SEC. 6. FTC REGULATIONS, INVESTIGATION, AND ENFORCEMENT REGARDING PRICE 
              GOUGING.

    (a) 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.
    (b) Investigation.--
            (1) 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.
            (2) 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.
            (3) 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.
    (c) Enforcement.--
            (1) 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.
            (2) 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.
            (3) Civil penalties.--
                    (A) 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.
                    (B) 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).
                    (C) Multiple offenses; mitigating factors.--In 
                assessing a penalty provided by subparagraph (A)--
                            (i) each day of a continuing violation 
                        shall be considered a separate violation; and
                            (ii) 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.
    (d) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) 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.
            (3) 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).
            (4) Price gouging.--The term ``price gouging'' has the 
        meaning given such term by the Commission in the regulations 
        issued under subsection (a).
                                 <all>