S. 4111, Windfall Profits Tax with Consumer Rebate. Quorum's AI analysis reads it as a trade-off: gains for some, costs for others.
S. 4111 · Mixed
What it does
This bill imposes a quarterly excise tax on crude oil producers and importers when oil prices exceed 2025 baseline levels, taxing 50% of the price increase per barrel. Revenues fund direct rebates to eligible individual taxpayers (with income phase-outs), effectively passing the tax burden from oil companies to consumers at the pump. The tax applies to producers extracting or importing more than 300,000 barrels per day, with inflation adjustments beginning in 2027.
The analysis names Individual consumers (via gasoline price rebates) — and 2 more groups — among the beneficiaries.
The trade-off
The 50% tax rate on price increases above the 2025 baseline creates a significant disincentive for crude oil production during high-price quarters, potentially reducing domestic supply and shifting extraction to lower-tax jurisdictions.
The analysis put a high warning level on this bill. Transparency scores 72%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by Sheldon Whitehouse. Cosponsored by Bernie Sanders, Christopher Murphy, Cory Booker and Ed Markey.