Skip to content

Biden Ally Floats 21% Surtax on Oil Profits to Blunt Inflation

  • White House weighs oil profit tax, but wary of supply impact
  • Oregon senator’s proposal faces likely united GOP opposition
Bloomberg business news
WATCH: The White House might tax big oil profits.Source: Bloomberg
Updated on

Oil companies that record a profit margin better than 10% would face a new federal surtax under a plan developed by a key senator, as Democrats and the White House struggle to curb US energy costs and broader inflation.

The proposal by Senator Ron Wyden, an Oregon Democrat who chairs the tax-writing Finance Committee, would mean oil companies face federal taxes of as much as 42% on profits considered excessive -- the 21% US corporate tax rate plus a new 21% surtax, according to two people briefed on the proposal.