On this day in history, April 2, 1980, President Jimmy Carter signed the Crude Oil Windfall Profit Tax Act, aiming to capture excess revenues from rising oil prices. The tax was designed as an excise tax, not a traditional profit tax, applying a maximum rate of 70% on the difference between market prices and a set base price. Intending to generate $393 billion, it ultimately raised only $80 billion due to falling oil prices, reduced domestic production, and high administrative costs. Critics argued that the tax discouraged U.S. oil investment, increasing reliance on foreign imports. By 1988, under President Ronald Reagan, the tax was repealed, marking its failure as an effective revenue tool.