U.S. President Joe Biden on Monday called on oil and gas companies to use their record profits to lower costs for Americans and increase production or pay a higher tax rate, as he battles high pump prices with elections coming in a week.
Biden attacked major oil companies in remarks at the White House for making large profits while Americans, weary of inflation, pay a handsome sum to fill up their automobiles.
According to him, the oil sector “has not fulfilled its responsibility to invest in America and help the American people.” They’re making “profits so high it is hard to believe,” Biden claimed, not simply a “fair return.”
“Their profits are a windfall of war,” he said, of the conflict that is ravaging Ukraine, and they have a responsibility to act.
“I think it’s outrageous,” he said. If they passed those profits on to consumers, gasoline prices would be down about 50 cents, he said.
“If they don’t, they’re going to pay a higher tax on their excess profits, and face other restrictions,” he said. The White House will work with Congress to look at these options and others. “It’s time for these companies to stop war profiteering.”
Biden stated that if oil and gas firms do not invest their earnings in reducing prices for Americans and expanding production, he will lobby Congress to consider imposing tax fines and other limitations on the companies.
The president held the event with a week to go until Americans decide whether his Democrats will remain in control of the U.S. Congress. Republicans are favored to take command of the House of Representatives, while the Senate is viewed as a toss-up.
Exxon Mobil Corp. and Chevron Corp., two of the largest energy companies in the world, reported yet another round of enormous quarterly profits thanks to rising natural gas and gasoline costs that have driven up inflation rates globally and renewed calls for more taxes on the energy sector.
Energy experts predict that it would be challenging to pass a law punishing energy companies for excess profits, regardless of whether Democrats or Republicans control Congress.
While customers struggle with higher energy prices, the White House has been studying legislative legislation that might tax the profits of oil and gas corporations for months.
British lawmakers in July approved a 25% windfall tax on oil and gas producers in the British North Sea that was expected to raise 5 billion pounds ($5.95 billion) in one year to help people struggling with soaring energy bills.
