Kaine Cosponsors Bill to Provide Consumers Continued Relief at the Pump
WASHINGTON, D.C. —Today, U.S. Senator Tim Kaine announced his cosponsorship of the Big Oil Windfall Profits Tax Act, legislation to help provide consumers continued relief at the pump.
“No one should have to worry about whether they can afford to commute to work or pick up their kids from school,” Kaine said. “I’m glad to see Virginia’s average gas price fall below $4 a gallon, and am focused on doing all we can to keep prices low, including by taxing excess profits from big oil companies and sending that money back to Americans’ pockets.”
Big oil companies are reaping near-record profits. In 2021, ExxonMobil’s profits jumped 60 percent over pre-pandemic levels to $23 billion. Over that same time period, the price of a gallon of gasoline rose from an average of $2.65 to $3.41.
The Big Oil Windfall Profits Tax, which is led by U.S. Senator Sheldon Whitehouse (D-RI), would address rising gas costs by taxing companies that produce or import at least 300,000 barrels of oil per day. The tax would be set at the value equal to 50 percent of the difference between the current and pre-pandemic prices of one barrel of oil, with rebates available for single filers who earn $75,000 or less or joint filers who earn $150,000 or less. With oil currently priced at roughly $100 per barrel, this legislation would raise somewhere between $25 and $30 billion per year.
Full text of the legislation is available here.