H.R.366 - To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States. (119th Congress)
Summary
H.R. 366 proposes to amend the Internal Revenue Code of 1986, specifically Section 7652, to direct fuel tax revenues collected on fuel produced in the Virgin Islands and imported into the United States directly to the Virgin Islands treasury. The bill aims to provide the Virgin Islands with a dedicated revenue stream from fuel taxes. This would apply to fuel entered into the United States after December 31, 2024.
Expected Effects
If enacted, H.R. 366 would alter the distribution of federal fuel tax revenue, increasing the financial resources available to the Virgin Islands. The Virgin Islands government would have more funds to allocate to local priorities. The change could incentivize fuel production within the Virgin Islands.
Potential Benefits
- Provides a dedicated revenue stream to the Virgin Islands, potentially improving its financial stability.
- Allows the Virgin Islands to directly benefit from its fuel production.
- Could lead to improved public services and infrastructure in the Virgin Islands due to increased funding.
- May incentivize further economic activity related to fuel production in the Virgin Islands.
- Could foster greater self-sufficiency and reduce reliance on federal grants for the Virgin Islands.
Potential Disadvantages
- Could reduce federal revenue available for other national programs, though the impact is likely minimal.
- May create a precedent for other territories or states to seek similar dedicated revenue streams, potentially complicating federal budgeting.
- Could lead to disputes over the definition of "fuel produced in the Virgin Islands".
- May not significantly impact the overall economic situation of the Virgin Islands if fuel production remains low.
- Potential for mismanagement of funds by the Virgin Islands government, although this is not a direct consequence of the bill itself.
Constitutional Alignment
The bill appears to align with the constitutional authority of Congress to regulate taxation and commerce among the states and territories, as outlined in Article I, Section 8. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments. The allocation of tax revenue is generally within the purview of Congress.
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).