Tax the Corporations Cashing in on War

Our dependence on fossil fuels does more than pollute our air. It destabilizes the world and empowers the ultra-wealthy to profit off of that volatility, leaving working families to pay the price.

This dynamic has been on full display since President Trump’s attack on Iran.

Trump’s invasion of one of the world’s most oil-rich regions jolted energy markets, sending gas prices soaring to the highest level in either of his terms. In 2024 he campaigned on cutting them in half. Instead, Americans are now on track to pay roughly $720 more for gasoline this year.

The full cost to working families will be much steeper as high gas prices drive up prices on consumer goods across the board. We’re already seeing that ripple effect take hold, as the U.S. Postal Service has proposed a temporary 8 percent fuel surcharge on package deliveries to offset rising transportation costs tied directly to the war-driven spike in oil prices.

At the same time, the oil and gas companies that invested at least $75 million in Trump’s reelection are cashing in on this instability. A recent Financial Times analysis estimates that U.S. oil companies could collect an additional $63 billion in revenue this year if crude prices remain at these wartime levels. In March alone, the industry is expected to generate $5 billion in extra cash flow.

This type of windfall isn’t a fluke. We’ve seen this pattern for decades.

Oil has a way of appearing in the background of every chapter of U.S. military intervention in the Middle East and beyond. Iran nationalized its oil industry in the 1950s and a CIA-backed coup followed. Iraq, sitting on some of the world’s largest reserves, was invaded in 2003. And earlier this year, the U.S. invaded Venezuela and immediately began plans for a taxpayer-backed oil industry takeover.

Dependence on fossil fuels keeps us trapped in this cycle. Oil executives have spent billions to maintain this status quo, backing politicians like Trump who will protect their profits. As the oil industry rakes in eye-popping profits, it gains more power to elect leaders who prioritize policies that ensure Americans remain reliant on fossil fuels.

Following Russia’s invasion of Ukraine, Congress considered a windfall profits tax on large oil companies that would capture the excess profits generated by the crisis — and return the money to American households. Roughly 80 percent of Americans supported the idea.

Failure to advance that legislation cost us. Researchers calculated that if the U.S. had redistributed the portion of fossil fuel profits that exceeded 2021 returns, every American household could have received $1,715.

As oil executives profit off the war in Iran, Congress must once again push for a windfall profits tax on the largest oil companies. This isn’t an outlandish idea. Other countries have already done it. After the 2022 energy shock, the United Kingdom enacted a windfall tax on oil and gas companies, raising about $3.3 billion in its first year and roughly $4.5 billion the next — money used to help households pay their energy bills.

The current situation in Iran underscores how unchecked extreme wealth fuels corporate control, leaving working families vulnerable. New data from Impact Research for Tax the Greedy Billionaires shows that voters blame billionaires for the affordability crisis and want leaders to do more to address this. In fact, 77 percent of voters nationwide — including 65 percent of Republicans, 75 percent of Independents, and 91 percent of Democrats — support raising taxes on billionaires.

Under the Trump administration, war profiteering has reached new extremes. Confronting corporate power and taxing the ultra-wealthy isn’t just about economic fairness — it’s a national security imperative.

To reclaim our foreign policy from those who see a global crisis as a line-item on an earnings call, we must break the billionaire grip on our energy system, economy, and democracy writ large. If we want a democracy that works for the people, we must stop letting it be sold to the highest bidder.

This piece was first published on our sister site OtherWords.