Congressman John Yarmuth (KY-3) announced today that he will introduce legislation to finally end federal subsidies to oil companies and return the money to the American people through targeted gas rebates. The savings of nearly $40 billion will provide direct assistance to American drivers struggling with high gas prices through one-time payments of approximately $160 per registered vehicle -- an average of $320 per Louisville family.
"It's American families who struggle when the price of gas rises, not oil companies whose record profits only increase when we pay more at the pump," Yarmuth said. "That is why I'm introducing legislation to end taxpayer-funded subsidies for oil companies and return that cash to consumers."
The oil industry is slated to receive about $38.6 billion in federal subsidies over the next 10 years, even as the nonpartisan Joint Economic Committee concluded the subsidies do not lower prices at the pump. Yarmuth's bill, which he plans to introduce this week, would eliminate the subsidies entirely and immediately inject the full $38.6 billion into the U.S. economy. The economic impact for Kentucky alone would total more than $564 million.
The legislation instructs the Internal Revenue Service and the Secretary of the Treasury to work with states to oversee and distribute rebates to individuals and businesses for each vehicle they own or lease for longer than one year. According to the Federal Highway Administration, there are approximately 242 million privately registered vehicles in the country. The $38.6 billion will be divided among those 242 million vehicles, resulting in rebates of approximately $160 per vehicle.
Even with domestic oil-drilling at an all-time high, the cost of filling the tank continues to rise, and Louisville families and small businesses have been among the hardest hit with prices spiking above the national average in recent weeks.