Today, Rep. Cindy Axne (IA03) announced her support for the Stop Gas Price Gouging Tax and Rebate Act, which would create a one-time windfall tax on excess profits of major integrated oil companies during 2022, and use that revenue to support working Iowans who are paying higher gas prices.
Large oil companies are making record profits while prioritizing returning cash to shareholders, rather than expanding production, including more than $38 billion of stock buybacks this year. They often have no plans to invest in expanding production despite high oil prices.
This one-year tax on the very largest oil companies would equal 50 percent of oil companies’ excess profits in 2022 (defined as more than 10% over their average from 2015-2019). This would apply to oil producers with daily production of at least 300,000 barrels per day and annual revenue of over $1 billion. Exxon Mobil, for example, made more than $23 billion in profits in 2021, an increase of more than 60% over their 2019 profit of $14 billion, and is planning to buy back $10 billion of stock in 2022.
The revenue from the windfall tax would be used for Energy Price Rebates, which would be monthly refundable tax credits to consumers.
“Large oil companies have been taking advantage of their consumers for far too long and hardworking Iowans are paying the price for their greed,” Rep. Axne said. “High oil and gasoline prices are straining our economy, and yet the corporations that produce that oil are refusing to invest and increase supply. Instead, they’re restricting supply growth so they can make their shareholders a little wealthier. It’s time to hold these companies accountable and make sure this money makes it back to the American people rather than funneling it straight to Wall Street.”
Rep. Axne has repeatedly called for domestic oil producers to increase production as total U.S. oil production is down by about 1.3 million barrels per day from early 2020, even while prices continue to rise.
The Congresswoman has also successfully led the charge to make E15 available year-round to help offset the high prices of gas, a measure that President Joseph R. Biden approved earlier this week.
