Tar Sands Tax Loophole Elimination Act
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Rep. Schakowsky, Janice D. [D-IL-9]
ID: S001145
Bill's Journey to Becoming a Law
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Introduced
đź“Ť Current Status
Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
Committee Review
Floor Action
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House Review
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Presidential Action
Became Law
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2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Bill Summary
Another bill, another exercise in futility. The Tar Sands Tax Loophole Elimination Act (HR 2224). How quaint. How utterly predictable.
**Main Purpose & Objectives:** The main purpose of this bill is to "clarify" that products derived from tar sands are indeed crude oil for the purposes of the Federal excise tax on petroleum. Oh, how noble. The real objective, of course, is to close a loophole that's been allowing tar sands producers to avoid paying their fair share of taxes. But let's not be naive – this bill is more about optics than actual change.
**Key Provisions & Changes to Existing Law:** The bill amends the Internal Revenue Code to explicitly include products derived from tar sands as crude oil, subject to excise tax. It also grants regulatory authority to address other types of crude oil and petroleum products that might be slipping through the cracks. Wow, how bold. The changes are about as exciting as a lecture on crop rotation.
**Affected Parties & Stakeholders:** The usual suspects: tar sands producers, refineries, and the oil industry at large. They'll pretend to be outraged by this "draconian" measure, but in reality, they'll just find new ways to exploit loopholes or lobby for exemptions. The environmental groups will cheer, of course, because they think this bill actually means something. Poor, deluded souls.
**Potential Impact & Implications:** The impact will be negligible, at best. This bill is a Band-Aid on a bullet wound. It might generate some extra revenue, but it won't even begin to address the systemic issues plaguing our energy policy. The real implications are that this bill will provide cover for politicians to claim they're "doing something" about climate change and tax reform, while actually accomplishing nothing.
Diagnosis: This bill is a classic case of " Legislative Lip Service Syndrome" – a condition where lawmakers pretend to address a problem while actually perpetuating the status quo. Symptoms include empty rhetoric, meaningless reforms, and a healthy dose of cynicism. Treatment: a strong dose of skepticism, followed by a thorough dissection of the bill's actual intentions.
In short, HR 2224 is a joke – a pathetic attempt to appear proactive while maintaining the same old corrupt relationships between politicians and special interests. Wake me up when someone actually tries to pass meaningful legislation.
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đź’° Campaign Finance Network
No campaign finance data available for Rep. Schakowsky, Janice D. [D-IL-9]
Project 2025 Policy Matches
This bill shows semantic similarity to the following sections of the Project 2025 policy document. Higher similarity scores indicate stronger thematic connections.
Introduction
— 522 — Mandate for Leadership: The Conservative Promise similar agency actions made in compliance with that order.18 Meanwhile, the new Administration must immediately reinstate the following Trump DOI sec- retarial orders: l SO 3348: Concerning the Federal Coal Moratorium;19 l SO 3349: American Energy Independence;20 l SO 3350: America-First Offshore Energy Strategy;21 l SO 3351: Strengthening the Department of the Interior’s Energy Portfolio;22 l SO 3352: National Petroleum Reserve—Alaska;23 l SO 3354: Supporting and Improving the Federal Onshore Oil and Gas Leasing Program and Federal Solid Mineral Leasing Program;24 l SO 3355: Streamlining National Environmental Policy Reviews and Implementation of Executive Order 13807, “Establishing Discipline and Accountability in the Environmental Review and Permitting Process for Infrastructure Projects”;25 l SO 3358: Executive Committee for Expedited Permitting;26 l SO 3360: Rescinding Authorities Inconsistent with Secretary’s Order 3349, “American Energy Independence;”27 l SO 3380: Public Notice of the Costs Associated with Developing Department of the Interior Publications and Similar Documents;28 l SO 3385: Enforcement Priorities;29 and l SO 3389: Coordinating and Clarifying National Historic Preservation Act Section 106 Reviews.30 Actions. At the same time, the new Administration must: l Reinstate quarterly onshore lease sales in all producing states according to the model of BLM’s IM 2018–034, with the slight adjustment of including expanded public notice and comment.31 The new Administration should work with Congress on legislation, such as the Lease Now Act32 and — 523 — Department of the Interior ONSHORE Act,33 to increase state participation and federal accountability for energy production on the federal estate. l Conduct offshore oil and natural gas lease sales to the maximum extent permitted under the 2023–2028 lease program,34 with the possibility to move forward under a previously studied but unselected plan alternative.35 l Develop immediately and finalize a new five-year plan, while working with Congress to reform the OCSLA by eliminating five-year plans in favor of rolling or quarterly lease sales. l Review all resource management plans finalized in the previous four years and, when necessary, select studied alternatives to restore the multi-use concept enshrined in FLPMA and to eliminate management decisions that advance the 30 by 30 agenda. l Set rents, royalty rates, and bonding requirements to no higher than what is required under the Inflation Reduction Act.36 l Comply with the Alaska National Interest Lands Conservation Act (ANILCA) and the Tax Cuts and Jobs Act of 2017 to establish a competitive leasing and development program in the Coastal Plain, an area of Alaska that was set aside by Congress specifically for future oil and gas exploration and development. It is often referred to as the “Section 1002 Area” after the section of ANILCA that excludes the area from Arctic National Wildlife Refuge’s wilderness designation.37 l Conclude the programmatic review of the coal leasing program, and work with the congressional delegations and governors of Wyoming and Montana to restart the program immediately.38 l Abandon withdrawals of lands from leasing in the Thompson Divide of the White River National Forest, Colorado; the 10-mile buffer around Chaco Cultural Historic National Park in New Mexico (restoring the compromise forged in the Arizona Wilderness Act39); and the Boundary Waters area in northern Minnesota if those withdrawals have not been completed.40 Meanwhile, revisit associated leases and permits for energy and mineral production in these areas in consultation with state elected officials. l Require regional offices to complete right-of-way and drilling permits within the average time it takes states in the region to complete them.
Introduction
— 698 — Mandate for Leadership: The Conservative Promise Fundamental Tax Reform. Achieving fundamental tax reform offers the prospect of a dramatic improvement in American living standards and an equally dramatic reduction in tax compliance costs. Lobbyists, lawyers, benefit consul- tants, accountants, and tax preparers would see their incomes decline, however. The federal income tax system heavily taxes capital and corporate income and discourages work, savings, and investment. The public finance literature is clear that a consumption tax would minimize government’s distortion of private economic decisions and thus be the least eco- nomically harmful way to raise federal tax revenues.28 There are several forms that a consumption tax could take, including a national sales tax, a business transfer tax, a Hall–Rabushka flat tax,29 or a cash flow tax.30 Supermajority to Raise Taxes. Treasury should support legislation instituting a three-fifths vote threshold in the U.S. House and the Senate to raise income or corporate tax rates to create a wall of protection for the new rate structure. Many states have implemented such a supermajority vote requirement. Tax Competition. Tax competition between states and countries is a positive force for liberty and limited government.31 The Biden Administration, under the direction of Treasury Secretary Janet Yellen, has pushed for a global minimum corporate tax that would increase taxation and the size of government in the U.S. and around the world. This attempt to “harmonize” global tax rates is an attempt to create a global tax cartel to quash tax competition and to increase the tax burden globally. The U.S. should not outsource its tax policy to international organizations. Organization for Economic Co-operation and Development. The Organi- zation for Economic Co-operation and Development (OECD), in conjunction with the European Union, has long tried to end financial privacy and impose regulations on countries with low (or no) income taxes. In fact, on tax, environmental, corpo- rate governance and employment issues, the OECD has become little more than a taxpayer-funded left-wing think tank and lobbying organization.32 The United States provides about one-fifth of OECD’s funding.33 The U.S. should end its finan- cial support and withdraw from the OECD. TAX ADMINISTRATION The Internal Revenue Service is a poorly managed, utterly unresponsive and increasingly politicized agency, and has been for at least two decades. It is time for meaningful reform to improve the efficiency and fairness of tax administration, better protect taxpayer rights, and achieve greater transparency and accountability. A substantial number of the problems attributed to the IRS are actually a function of congressional action that has made the Internal Revenue Code ridiculously complex, imposed tremendous administrative burdens on both the public and the IRS, and given massive non-tax missions to the IRS. But the culture, administrative practices, and management at the IRS need to change. — 699 — Department of the Treasury Doubling the IRS? The Inflation Reduction Act contains a radical $80 billion expansion of the IRS—enough to double the size of its workforce.34 Unless Congress reverses this policy, the IRS will become much more intrusive and impose still greater costs on the American people. The Biden Administration has also sought to make the tax system’s adminis- trative burden much worse in other ways. For example, it has proposed creating a comprehensive financial account information reporting regime that would apply to all business and personal accounts with more than $600. Banks would be required to collect the taxpayer identification numbers of and file a revised Form 1099-K for all affected payees, as well as provide additional information.35 This massive increase in the scope and breadth of information reporting should be unequivo- cally opposed. Management. The IRS has approximately 81,000 employees.36 Of those, only two are presidential appointments—the Commissioner and the Chief Counsel.37 As a practical matter, it is impossible for these two officials to overcome bureau- cratic inertia and to implement policy changes that the IRS bureaucracy wants to impede. That is why, notwithstanding decades of sound and fury, almost nothing has changed at the IRS. For the IRS to change and become more accountable, more transparent, and better managed, there is a need to increase the number of Presidential appoint- ments subject to Senate confirmation, and not subject to Senate confirmation, at the IRS. At the very least, Congress should ensure that the Deputy Commissioner for Services and Enforcement, the Deputy Commissioner for Operations Support, the National Taxpayer Advocate, the Commissioner of the Wage and Investment Division, the Commissioner of the Large Business and International Division, the Commissioner of the Small Business Self-Employed Division, and the Com- missioner of the Tax Exempt and Government Entities Division are presidential appointees.38 Information Technology. Despite the investment of billions of dollars for at least two decades, IRS information technology (IT) systems remain deficient.39 The IRS inadequately protects taxpayer information, its IT systems do not ade- quately support operations or taxpayer services, and its matching and detection algorithms are antiquated. These problems are not primarily about resources. The IRS has spent approxi- mately $27 billion on IT during the past decade, with $7 billion of that designated as “development, modernization and enhancement.“40 The problem is one of man- agement. The bureaucracy is not up to the task, and neither Congress nor a long line of IRS commissioners has forced changes. A Deputy Commissioner for Operations Support with strong IT management skills should be appointed by the IRS Commissioner or the President (once the position is made a presidential appointment). The various subordinates to the
Introduction
— 287 — Section 3: The General Welfare In Chapter 19, on the Department of Transportation (DOT), former DOT deputy assistant director for research and technology Diana Furchtgott-Roth writes, “In pursuit of an anti-fossil-fuel climate agenda never approved by Congress, the Biden Administration has raised fuel economy requirements to levels that cannot real- istically be met” by most gas-powered cars, thereby reducing Americans’ freedom while increasing costs. Lastly, former acting chief of staff at the Department of Veterans Affairs Brooks D. Tucker, echoing concerns expressed in other chapters, writes in Chapter 20 that the Veterans Affairs (VA) must be “accountable to the needs and problems of veterans, not subservient to the parochial preferences of the bureaucracy.” — 289 — 10 DEPARTMENT OF AGRICULTURE Daren Bakst Am erican farmers efficiently and safely produce food to meet the needs of in dividuals around the globe. Because of the innovation and resilience of the nation’s farmers, American agriculture is a model for the world. If farmers are allowed to operate without unnecessary government intervention, American agriculture will continue to flourish, producing plentiful, safe, nutritious, and affordable food. The U.S. Department of Agriculture (USDA) can and should play a limited role, with much of its focus on removing governmental barriers that hinder food pro- duction or otherwise undermine efforts to meet consumer demand. The USDA should recognize what should be self-evident: Agricultural production should first and foremost be focused on efficiently producing safe food. This chapter provides important background on the USDA and identifies many of the USDA-specific issues that will be faced by an incoming Administration. It provides specific recommendations for the next Administration about how to address these issues and lays out a conservative vision for what the USDA should look like in the future. MISSION STATEMENT The current mission statement as stated by the Biden Administration highlights the broad scope of the USDA: To serve all Americans by providing effective, innovative, science-based public policy leadership in agriculture, food and nutrition, natural resource
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About These Correlations
Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.