In a Halloween speech aimed at Big Oil’s record profits, President Joe Biden is considering a “windfall tax” on energy companies in an effort to portray them as villains.
Eight days before the midterm elections that will determine whether Democrats retain control of Congress, the president is attempting to combat high gas prices.
In remarks at the White House on Monday afternoon, Vice President Biden will respond to recent reports that major oil companies are making record profits while refusing to help lower gas prices for the American people, according to a White House official who spoke to the Associated Press.
According to a source with knowledge of the situation, Biden will consider imposing a tax on the profits of energy companies in an effort to pressure them into lowering prices for consumers.
A ‘windfall profits tax’ would be imposed on the profits of energy companies that exceed their average annual profits.
Voters criticize Democrats for the high cost of living, which includes gas prices, and the Biden administration has been visibly frustrated by the amount of money energy companies are making.
Biden has attempted to bring down gas prices by making oil companies and Russian President Vladimir Putin the villains. In addition to blaming Putin’s invasion of the Ukraine, he has criticized Big Oil for not releasing enough crude and for its record profits.
This quarter, oil companies made billions in profits, Biden tweeted on Saturday. Instead of investing in production and lowering costs for Americans, they’re using these record profits to pay out their wealthy shareholders. It’s unacceptable. It is time for these companies to decrease pump prices.
High gas prices have exacerbated inflation and negatively affected Biden’s approval rating. Voters give him low marks for his economic management.
Any additional taxes on energy producers would require congressional approval, which would be difficult given the Democrats’ tenuous hold on the House and Senate, and even less likely if Republicans retake one or both chambers on November 8.
Exxon Mobil’s third-quarter net income of $19.66 billion set a new record last week, while Chevron’s profits of $11.23 billion came close to matching the previous quarter’s record earnings.
According to AAA, the average price for a gallon of regular gasoline in the United States at the beginning of July was more than $4.80.
Since then, they have decreased to an average of $3.76 on a national scale, but the White House asserts that they should be even lower given the concurrent decline in global oil prices.
Biden tweeted on Friday, “Can’t believe I have to say this, but delivering profits to shareholders is not the same as lowering prices for American families.”
Biden has been critical of the profits of energy companies at least since June, when he complained publicly that “Exxon made more money this year than God.”