Rep. Cleaver Cosponsors Legislation to Lower Gas Prices, Combat Greed of Big Oil, and Provide Rebates to American Consumers

April 1, 2022

(Washington, D.C.) – This week, U.S. Representative Emanuel Cleaver, II (D-MO) announced he has cosponsored H.R. 7099, the Stop Gas Price Gouging Tax and Rebate Act, which would help to curb profiteering from major oil companies by creating a windfall profit tax on the excessive corporate profits of Big Oil. The revenue created from the windfall profit tax would then be returned to American consumers in the form of a tax rebate, helping to pay for the rise in gas prices.

"At a time when hardworking families are feeling the pain of the Putin Price Hike at the gas pump, Big Oil and corporate executives are seemingly using this moment to pad their record profits at the expense of Missourians. It's beyond shameful, and Congress must immediately pass legislation to protect consumers," said Congressman Cleaver. "I'm proud to support Chairman DeFazio's Stop Gas Price Gouging Tax and Rebate Act to ensure companies like Exxon Mobil, Chevron, Shell, and the like cannot profit from Putin's bloody war in Ukraine, and I will continue investigating every avenue possible to lower gas prices for Missourians in the Fifth District."

As the Biden Administration vaccinated hundreds of millions of Americans and pandemic restrictions were loosened, the global consumption of oil and gas increased substantially in 2021. As a result of increased global demand, 24 of the top oil and gas companies made more than $127 billion in profits last year. The largest oil and gas company in the U.S., Exxon Mobil, reported more than $23 billion in profits in 2021 alone. Rather than reinvesting those profits to reduce prices on consumers, Big Oil instead awarded shareholders, with 14 oil companies alone giving more than $35 billion in dividend increases and stock buybacks. In the first quarter of 2022, nearly $80 billion in shareholder returns have already been announced, even as gas prices remain extraordinarily high around the world.

In an effort to prevent Big Oil from price gouging at the pump and to provide relief to Missouri consumers, the Stop Gas Price Gouging Tax and Rebate Act would:

Create an income-based windfall profit tax on excessive corporate profits of major oil and gas companies, who would pay a one-time 50 percent windfall profit tax on any adjusted taxable income (ATI) in 2022 that exceeds 110 percent of their average ATI during pre-pandemic levels between 2015-2019.
Lower energy prices for Missourians with a tax rebate by returning revenue raised by the windfall profit tax to consumers as a month, advance, and refundable tax credit that will be phased out by income. Eligibility would be identical to criteria used for Economic Impact Payments that were included in the American Rescue Plan.

"While the American people are willing to pay more at the pump to support our Ukrainian friends and their fight for freedom, we cannot allow Big Oil to exploit this tragic moment. With the Stop Gas Price Gouging Tax and Rebate Act, they won't be able to," said Congressman Cleaver.

The legislation was introduced by Rep. Peter DeFazio, Chairman of the House Transportation & Infrastructure Committee, and is cosponsored by Nanette Barragan (D-CA), Andre Carson (D-IN), Steve Cohen (D-TN), Jesus "Chuy" Garcia (D-IL), Raul Grijalva (D-AZ), Pramila Jayapal (D-WA), Mondaire Jones (D-NY), Marcy Kaptur (D-OH), Tom Malinowski (D-NJ), Chellie Pingree (D-ME), Katie Porter (D-CA), Deborah Ross (D-NC), Mark Takano (D-CA), Dina Titus (D-NV), Rashida Talib (D-MI), Lauren Underwood (D-IL), Peter Welch (D-VT), Jamaal Bowman (D-NY), Ted Lieu (D-CA), Frank Mrvan (D-IN), Marie Newman (D-IL), Eleanor Holmes Norton (D-DC), Mike Quigley (D-IL), Mary Scanlon (D-PA), Adam Schiff (D-CA), Betty McCollum (D-MN), Adam Smith (D-WA), Ruben Gallego (D-AZ), Jared Huffman (D-CA), Jim McGovern (D-MA), Michael San Nicolas (D-GU), Jan Schakowsky (D-IL), Bonnie Watson Coleman (D-NJ), and Dutch Ruppersberger (D-MD).

Official text of the Stop Gas Price Gouging Tax and Rebate Act is available here.

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Blue Springs, Grain Valley, Oak Grove, North Kansas City, Gladstone, Claycomo, and all of Ray, Lafayette, and Saline Counties. He is a member of the exclusive House Financial Services Committee; Chairman of the House Subcommittee on Housing, Community Development, and Insurance; member of the Select Committee on the Modernization of Congress; member of the Committee on Homeland Security; and a Senior Whip of the Democratic Caucus. A high-resolution photo of Congressman Cleaver is available here.