Senators Propose 50% Oil Tax and 25% Buyback Levy as Energy Prices Soar
Updated
Updated · Tax Foundation · Jul 15
Senators Propose 50% Oil Tax and 25% Buyback Levy as Energy Prices Soar
3 articles · Updated · Tax Foundation · Jul 15
Summary
Two Democratic-backed bills would hit oil and gas companies with new taxes, including a windfall levy on crude sales and a sharply higher tax on stock buybacks.
The Big Oil Windfall Profits Tax Act would permanently tax crude at 50% of the gap between the current quarter’s average price and the 2025 average.
A separate measure from Chuck Schumer and Ron Wyden would raise the stock buyback tax for oil and gas companies to 25% from 1%.
The proposals come as lawmakers respond to public anger over high energy prices, reviving producer-focused tax ideas as a policy answer to the supply crunch.