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1 Alex Muresianu & Will McBride, A Guide to the Fossil Fuel Provisions of the Biden Budget 1 (2023)

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* TAX FOUNDATION



A Guide to the Fossil Fuel Provisions

of the Biden Budget


Alex Muresianu
Will McBride


Policy Analyst
Vice President of Federal Tax Policy


September  2023



Key Findings

•  The  Biden administration's budget proposes raising taxes on the U.S. fossil fuel industry.
•  The  proposals largely depart from neutral tax policy and intentionally target the industry.
•   Internal Revenue Service data does not indicate any substantial tax preference for the fossil fuel in-
   dustry, rather indicating the industry pays relatively high levels of tax.
 •  Raising taxes on U.S. production and ownership of fossil fuel, both domestically and abroad, disadvan-
   tages U.S. companies  and workers in favor of foreign suppliers.
 • Taxing fossil fuel consumption, through user fees or a carbon tax, would avoid creating preferences
   for foreign-owned fossil fuel.
























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