Democratic Senator Ron Wyden (OR) - who last year blocked a bill that would punish Chinese forced labor before receiving $60K from Nike execs - wants to punish US oil companies by slapping a 21% surtax on profits that exceed 10%.
Wyden, who chairs the tax-writing Finance Committe, would boost federal taxes to as much as 42% on profits considered excessive, when combined with the existing 21% US corporate tax rate, according to Bloomberg.
"The proposal I’m developing would help reverse perverse incentives to price gouge, by doubling the corporate tax rate on companies’ excess profits, eliminating egregious buybacks and reducing accounting tricks," said Widen, who plans to introduce his proposal in the coming weeks.
"By contrast, companies that provide relief to consumers by either reducing prices or investing in new supply would not be affected."
To pass, Wyden will likely need the support of all 50 Senate Democrats in order to overcome GOP opposition - which means wooing moderate Democrat Joe Manchin (WV), who has previously expressed skepticism over hiking taxes on the energy industry.
Biden's team likes
According to the report, top Biden aides have warmed up to the plan as they scramble to tackle rising energy costs ahead of midterms in November. While Bloomberg notes that the proposal wouldn't likely become law by fall, it would at least give Democrats a talking point.
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https://www.zerohedge.com/energy/biden-ally-bill-would-slap-21-surtax-oil-profits
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