President Joe Biden spoke from the White House on Monday, calling on oil and gas companies to redirect their record profits to lower costs for US consumers and increase production or potentially face the penalty of a higher tax rate.
During the remarks, Biden criticized big oil companies, saying the industry “has not met its commitment to invest in America and support the American people.” Biden said rather than making a “fair return,” oil companies are making profits “so high it is hard to believe.”
Biden said if gas and oil companies passed their profits onto consumers, gasoline prices could drop about $0.50.
“Their profits are a windfall of war,” Biden said in reference to the ongoing war in Ukraine. Biden said if the companies don’t act, “they’re going to pay a higher tax on their excess profits and face other restrictions.”
“It’s time for these companies to stop war profiteering,” Biden said.
The White House has been considering proposals for legislation that would tax energy companies for their excess profits for months. Passing any such law would require the help of Congress, something energy experts say would be difficult no matter which party takes control after next week’s elections.
In July, British lawmakers passed a similar law, approving a 25% windfall tax on oil and gas producers in the British North Sea. That law was expected to raise £5 billion over the course of one year.
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