End Polluter Welfare Act of 2025
Summary
The "End Polluter Welfare Act of 2025" aims to eliminate subsidies for fossil fuel production through various measures. It targets royalty relief, increases royalty rates, and restricts funding for fossil fuel projects by international financial institutions. The bill also includes amendments to the Internal Revenue Code of 1986, terminating tax expenditures and deductions related to fossil fuels.
Expected Effects
If enacted, the bill would likely increase the cost of fossil fuel production and consumption. This could lead to a shift towards renewable energy sources. Additionally, it would impact the financial performance of fossil fuel companies and potentially affect energy prices for consumers.
Potential Benefits
- Reduced environmental impact from fossil fuel production and consumption.
- Increased investment in renewable energy sources.
- Potential for long-term cost savings from reduced reliance on fossil fuels.
- Increased government revenue through the elimination of tax subsidies.
- Alignment with international efforts to combat climate change.
Potential Disadvantages
- Potential for increased energy prices in the short term.
- Job losses in the fossil fuel industry.
- Economic disruption in regions heavily reliant on fossil fuel production.
- Reduced energy security if renewable energy infrastructure is not developed quickly enough.
- Potential legal challenges from fossil fuel companies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on Congress's power to regulate commerce (Article I, Section 8) and to lay and collect taxes (Article I, Section 8). The Commerce Clause gives Congress broad authority to regulate activities that substantially affect interstate commerce, which includes energy production and consumption. The power to tax allows Congress to incentivize or disincentivize certain activities through the tax code.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).