California to tax oil company profits

A bill that would slap a windfall profits tax on California oil producers was approved by a state Assembly committee as gasoline prices surged past $3 a gallon.

The bill debated April 24 would levy a 2 percent tax on oil company income of more than $10 million and use the revenue to help low- and moderate-income senior citizens pay for prescription drugs.

It was approved by the Revenue and Taxation Committee, 4-3. The vote sent the bill to the Appropriations Committee, the last stop before the full Assembly.

The bill’s sponsor, Assemblyman Johan Klehs, a Democrat, accused oil companies of taking advantage of the Gulf Coast devastation caused last year by hurricanes Katrina and Rita.

—The Associated Press