Biden Threatens Oil Companies With Windfall Tax For War Profiteering
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On Monday, US President Joe Biden continued his warning on oil and gas companies to lower energy costs for Americans by tapping into their record profit gains. He warned that they should increase production and lower energy prices or face higher tax rates.
He attributed the record gains to the gains of war as oil prices sour to one of their highest levels. “Record profits today are not because they’re doing something new or innovative. The profits are a windfall of war,” he said.
Biden To Increase Their Taxes If They Don’t Cut Fuel Prices
His speech is coming at a time Americans are facing unusually high oil prices at the gas pump. The U.S. government has been using several measures to fight the rising levels of inflation caused by both geopolitical (Russia and Ukraine war) and economic factors.
Biden added that the high prices the companies are charging are outrageous. As a result, the significantly high profits they are deriving should be shared with consumers as well. If they do that, the oil prices can be cut by 50 cents. But if they fail to do so, the government is going to set up a policy that will charge them higher taxes for their profits.
Biden also added that the U.S. government will be working with Congress to look at its options and take necessary steps. “It’s time for these companies to stop war profiteering,” Biden added.
Global Energy Giants Hit Impressive Gains In The Third Quarter
Americans will be deciding whether Biden’s Democrats will still maintain the majority of the seats in the U.S. Congress next week. Republicans are tipped to take control of the House of Representatives, but the seats in the Senate are expected to be evenly fought.
Energy global giants Chevron Corp and Exxon Mobil Corp posted another round of impressive quarterly profits recently. They are gaining huge profits from the high increase in fuel prices and natural gas, which has contributed to the surge in inflation around the world.
Biden doesn’t seem to be particularly happy with these companies which have maintained consistently high fuel prices. To Biden, the Americans are bearing the brunt of the inflation while the companies keep multiplying their gains from the situation.
