> The Big Oil Windfall Profits Tax Act would:

> Claw back Big Oil’s windfall profits. Large oil companies will owe a per-barrel quarterly tax equal to 50 percent of the difference between the current price of a barrel of oil and the pre-pandemic average price per barrel between 2015 and 2019. It will apply to both domestically produced and imported barrels of oil to ensure a level playing field. The clawback will apply to oil profits in 2022 and going forward so that Americans gouged by high prices are made whole.

Made whole *HOW*? Are they going to deposit money directly into our bank accounts? No.

> Apply only to the largest companies. Large companies that produce or import at least 300,000 barrels of oil per day will be subject to the legislation. Smaller companies accounting for roughly 70 percent of domestic production will be exempt, so oil giants like Exxon and Chevron cannot simply gouge consumers further without the threat of losing market share.

I don't think they can do that. The Sherman Act[1] allows this behavior.

> Lower consumer costs with relief rebates. Revenue raised from the windfall profits of big oil companies will be returned to consumers in the form of a quarterly rebate, which would phase out for single filers who earn more than $75,000 in annual income and joint filers who earn more than $150,000. With oil priced at roughly $90-100 per barrel, this levy would raise approximately $48.1 billion per year. At this price, single filers would receive an estimated $255 each year and joint filers $382.

Ok they're gonna give the money back this way. So it would be a rebate. But I don't think they can limit it based on income like this. It would immediately end up in court. Just because you have more money doesn't mean you aren't entitled to the relief. A good possibility you bought more fuel if you're wealthier anyway.


[1] Section 2 of the Sherman Act makes it unlawful for a company to "monopolize, or attempt to monopolize," trade or commerce. As that law has been interpreted, it is not illegal for a company to have a monopoly, to charge "high prices," or to try to achieve a monopoly position by what might be viewed by some as particularly aggressive methods. The law is violated only if the company tries to maintain or acquire a monopoly through unreasonable methods. For the courts, a key factor in determining what is unreasonable is whether the practice has a legitimate business justification.