Wyden-Schumer-Bennet Bill Would Increase Tax on Stock Buybacks for Oil and Gas Companies

Wyden-Schumer-Bennet Bill Would Increase Tax on Stock Buybacks for Oil and Gas Companies

Proposal Would Increase Tax on Buybacks from 1 percent to 25 percent as Major Oil and Gas Companies Profit off Trump's War in Iran

Washington, D.C. - Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), Democratic Leader Chuck Schumer (D-N.Y.), and Senator Michael Bennet (D-Colo.) introduced legislation today to increase the excise tax on stock buybacks of large oil and gas companies from 1 percent to 25 percent. The Taxing Buybacks from Big Oil Windfalls Act comes as oil and gas companies are raking in huge profits during the war with Iran.

"Everything about Trump's war in Iran is a disaster, and there's no way we can allow big oil and gas companies to turn the extraordinary financial pain many drivers are feeling into another big payday for their wealthy shareholders," Senator Wyden said. "Trump does the bidding of oil and gas companies, but the American people want us to stand up to war profiteers. That's what our bill is about."

"Trump's war in Iran is an unmitigated disaster, and we will not let Big Oil turn that into a windfall for their wealthy shareholders," Leader Schumer said. "Hardworking Americans are spending $5 a gallon to fill up their tanks, while oil and gas executives are making money hand over fist. Trump may serve his Big Oil billionaire buddies, but we don't."

"President Trump's reckless war with Iran has pushed gas prices to record highs in Colorado and across the country, and consumers are paying the price," Senator Bennet said. "The last thing oil and gas companies should be doing with these windfall profits is rewarding their shareholders while working families struggle between filling up the gas tank or buying the week's groceries. This legislation will incent these companies to reinvest revenues in expanding supply, diversifying our energy sources, and increasing employment."

According to one recent report, Americans have spent $45 billion more on gas and diesel since the start of Trump's war in Iran than they did over the same time period in 2025. Immediately following Russia's invasion of Ukraine in 2022, Big Oil used its windfall profits to reward executives and rich shareholders with over $100 billion of stock buybacks. With the war in Iran generating a similar windfall profits, it is likely that Big Oil follows a similar playbook.

Legislative text is available here.

Also co-sponsoring the Taxing Buybacks from Big Oil Windfalls Act are Senators Jack Reed (D-R.I.), Sheldon Whitehouse (D-R.I.), Jeff Merkley (D-Ore.), Richard Blumenthal (D-Ct.), Brian Schatz (D-Hawaii), Mazie Hirono (D-Hawaii), Ed Markey (D-Mass.), Cory Booker (D-N.J.), Chris Van Hollen (D-Md.), Tina Smith (D-Minn.), Peter Welch (D-Vt.), and Andy Kim (D-N.J.).

Additional statements of support:

David Kass, executive director of Americans for Tax Fairness: "Oil companies and executives have been among the biggest winners from Trump's tax laws, making use of new loopholes and industry specific tax cuts to enrich themselves with taxpayer dollars. They use those windfalls to initiate stock buybacks to boost share prices and reward shareholders and executives, all while they raise prices on consumers. ATF welcomes the introduction of the Taxing Buybacks from Big Oil Windfalls Act. Congress cannot stand by as Big Oil squeezes American consumers at the pump while using our tax dollars to further enrich themselves."

Matthew Davis, Vice President of Federal Policy at the League of Conservation Voters: "While Trump's reckless war in Iran sent gas prices soaring, Big Oil executives saw an opportunity to squeeze families even harder, padding their profits with buybacks while Americans pay the price at the pump. Thank you to Senators Wyden, Schumer, and Bennet for stepping up to put people first by making sure Big Oil pays its fair share and helping bring real relief to families struggling with energy costs."

Kristen Crowell, Executive Director of Families Over Billionaires: "The Taxing Buybacks from Big Oil Windfalls Act sends a clear message: if oil giants choose to funnel war-driven windfalls into stock buybacks instead of helping lower costs for consumers, they will pay up. Families Over Billionaires is proud to support this effort to rein in corporate greed and put the interests of ordinary Americans ahead of billionaire investors. Congress should advance this bill immediately."

Sam Goodstein, Managing Director for Federal Affairs for the Natural Resources Defense Council: "Americans want off the rollercoaster of gasoline prices fueled by the war in Iran and our global dependence on oil. This measure is a strong signal to Big Oil that it is time to stop cutting checks to investors and cut prices for Americans instead."

Mahyar Sorour, Sierra Club's Director for Beyond Fossil Fuels Policy: "Americans were already dealing with an affordability crisis due to ill-conceived policies of the Trump administration. This legislation would help protect Americans from fossil fuel industry greed and ensure that Big Oil doesn't jack up prices even higher just to further enrich their shareholders. We're grateful to Senator Wyden, Leader Schumer, and Senator Bennet for their leadership to protect our families who are already paying the price for Trump's policies and the oil industry's war profiteering."

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