H.R. 8803, Windfall Profits Tax with Consumer Rebate. Quorum's AI analysis reads it as a net benefit — and names who gains.
H.R. 8803 · Net good
What it does
This bill imposes a federal excise tax on crude oil and petroleum products when the price of oil exceeds $75 per barrel, with the tax rate equal to 100% of the price above that threshold. The tax applies to both domestically extracted and imported oil, and continues until hostilities with Iran cease, the Strait of Hormuz reopens, and oil prices fall below $75/barrel. Revenue from this windfall tax funds quarterly rebates paid directly to U.S. taxpayers to offset higher gasoline prices.
The analysis names U.S. consumers (via gasoline rebates) — and 1 more group — among the beneficiaries.
The trade-off
The 100% tax rate on price above $75/barrel may create perverse incentives: oil companies could reduce production or exports to avoid the tax, potentially worsening supply constraints and paradoxically raising prices further.
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 Brad Sherman.