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Here's how experts say Dems' inflation bill will increase energy prices
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Democrats' spending package, which is intended to tackle inflation, will lead to higher consumer electricity and gasoline prices, experts told FOX Business.
The Inflation Reduction Act — which Sen. Joe Manchin, D-W.Va. unveiled last month and President Biden signed on Tuesday— will reinstate a nearly $12 billion tax on oil and petroleum companies while introducing a methane fee that is expected to generate $6.5 billion in federal revenue from natural gas producers.
The bill also more than doubles excise taxes on coal production, raising another $1.2 billion in federal revenue.
"Those are three taxes that are going to be passed on to consumers in the form of higher energy bills, higher gas prices," Mike Palicz, the federal affairs manager at Americans for Tax Reform, told FOX Business in an interview. "It will absolutely increase gas prices."
"They're out there claiming they're doing what they can, which is basically Strategic Petroleum Reserve releases and failing to negotiate with the Saudis, but here they are hiking taxes on oil production," he continued.
ENERGY REPS SAY DEMS' SPENDING, TAX AND CLIMATE BILL 'BAD IDEA' DURING RECESSION AS HOUSE PREPS FINAL VOTE