Bennet, Schumer, Wyden Introduce Legislation to Increase Stock Buybacks Tax for Oil and Gas Companies

May 21, 2026 | Press Releases

Proposal Would Increase Tax on Buybacks from One Percent to 25 Percent as Consumers Face Record Gasoline Prices

Washington, D.C. - Colorado U.S. Senator Michael Bennet, Ranking Member of the Senate Finance Subcommittee on Taxation and IRS Oversight, Democratic Leader Chuck Schumer (D-N.Y.), and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), introduced legislation to increase the excise tax on stock buybacks of large oil and gas companies from one percent to 25 percent in response to record high oil and gasoline prices. The Taxing Buybacks from Big Oil Windfalls Act comes as President Trump's war with Iran forces Coloradans to pay more than 60 percent more at the pump, and prevents large oil and gas firms from using increased revenues to reward shareholders instead of investing in supply.

"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," said Bennet. "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."

"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," said Wyden. "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," said Schumer. "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."

Immediately following Russia's unjustified and unprovoked invasion of Ukraine in 2022, large oil and gas firms used their windfall profits to reward executives and rich shareholders with over $100 billion of stock buybacks. As President Trump's war in Iran generates similar windfall profits, this legislation would prevent similar buyback activity financed by working families. Americans have spent $45 billion more on gasoline and diesel since President Trump launched his war compared to last year.

"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," said David Kass, executive director of Americans for Tax Fairness. "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."

"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," said Matthew Davis, Vice President of Federal Policy at the League of Conservation Voters. "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."

"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," said Kristen Crowell, Executive Director of Families Over Billionaires. "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."

"Americans want off the rollercoaster of gasoline prices fueled by the war in Iran and our global dependence on oil," said Sam Goodstein, Managing Director for Federal Affairs for the Natural Resources Defense Council. "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."

"Americans were already dealing with an affordability crisis due to ill-conceived policies of the Trump administration," said Mahyar Sorour, Sierra Club's Director for Beyond Fossil Fuels Policy. "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."

Earlier this month, Bennet led 14 colleagues on a letter urging Secretary of the Treasury Scott Bessent to fully resume sanctions on Russian oil and use every available tool to cut into Russia's war windfall profits. Bennet has also joined legislation requiring targeted sanctions on firms and individuals dealing in Russian oil and introduced legislation prohibiting the Trump Administration from providing taxpayer reimbursements for oil companies investing in Venezuela's oil and gas sector.

The text of the bill is available HERE.

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