CONTACT: Andrew Souvall 

or Heather Lasher Todd 

Washington, D.C. --- In the wake of new record profits posted by the largest oil and gas corporations, U.S. Rep. Frank Pallone, Jr. (D-NJ) today announced plans to introduce legislation that would impose a windfall profits tax on those companies and return the money to American consumers struggling with high energy prices.

"The increasing price of oil has made these mega-companies rich on the backs of everyday Americans," Pallone said.  "It's time to turn things around here and use these companies' disgustingly high profits to help out the average New Jerseyan who is struggling to pay to fill up their gas tank or heat their home."

Pallone's legislation would:

·        Impose a 50-percent tax on oil and gas companies' profits earned over a baseline price of $40 per barrel of oil;

·        Return 40-percent of the windfall profits tax revenue to the Department of Health and Human Services to increase funding for the Low Income Home Energy Assistance Program (LIHEAP);

·        Return 40-percent of the windfall profits tax revenue to the Department of Health and Human Services to establish a Low Income Gasoline Assistance Program;

·        Use 20-percent of the windfall profits tax revenue to fund tax incentives for the purchase of vehicles whose average gas mileage is greater than 30 miles per gallon.

"Many of our most vulnerable citizens have to make painful choices in their household budgets if they want to continue driving to work or heating their homes during the winter," Pallone continued.  "It's only appropriate to have oil companies help those who are less fortunate afford their energy bills with the record profits the companies are now witnessing."

Pallone also noted that using the windfall profits tax revenue to provide incentives to the purchase of fuel-efficient cars will help consumers purchase vehicles that cost less to drive while also reducing demand for gas, thus lowering prices at the pump.