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President Joe Biden railed against Big Oil’s exorbitant profits as he called on Congress to impose a ‘windfall tax’ on energy companies in a speech Monday.
‘Oil companies’ record profits today are not because they’re doing something new or innovative,’ Biden said in remarks at the White House. ‘Their profits are a windfall of war. The windfall from the brutal conflict is ravaging Ukraine and hurting tens of millions of people around the globe.’
Biden announced that he would work with Congress on a tax targeted at what he deems ‘excess’ profits, but did not lay out the details.
‘Every company is entitled to a fair return for the work they do or innovation they generate. But I mean profits so high it’s hard to believe,’ the president quipped.
President Joe Biden railed against Big Oil’s exorbitant profits as he called on Congress to impose a ‘windfall tax’ on energy companies in a speech Monday
Last week Exxon Mobil broke records with its profits in the third quarter, raking in $19.66 billion in net income – nearly triple its Q3 profits of last year – and Chevron had $11.23 billion in profits, almost reaching the record profits it attained in the prior quarter.
Biden said that if oil companies had been making the ‘average profits’ they’ve been making from refining oil over the last 20 years gas prices would be an average of 50 percent lower right now.
‘If they were investing their profits and historic rates in their US operations, then America would be producing more oil today. The prices would be down even further. But rather than increasing our investments in America, or giving Americans a break, their excess profits are going back to their shareholders, buying back their stocks and the executive pays are gonna skyrocket and give me a break — enough is enough,’ Biden said.
The president is seeking to combat high gas prices eight days before the midterm election that will decide if Democrats remain in control of Congress, as stubborn inflation figures have been weighing on their poll numbers.
‘Oil companies’ record profits today are not because they’re doing something new or innovative,’ Biden said in remarks at the White House
Biden has tried making both oil companies and Russian President Vladimir Putin the boogeyman as he tries to bring down prices at the pump. He’s blamed Putin’s invasion of the Ukraine but he’s also attacked Big Oil for not releasing enough crude and for its record profit margin.
‘Oil companies made billions in profits this quarter,’ Biden tweeted on Saturday. ‘They’re using these record profits to pay out their wealthy shareholders instead of investing in production and lowering costs for Americans. It’s unacceptable. It’s time for these companies to bring down prices at the pump.’
High prices at the pump have exacerbated inflation and hurt Biden’s approval rating. Voters give him low marks for his handling of the economy.
Congress would have to approve any additional taxes on the energy producers – which would be a tall order in the current Congress where Democrats have narrow control of the House and Senate, and even less likely should Republicans retake one or both chambers on Nov. 8.
‘President Biden loves to raise taxes. He and Senate Democrats have worked purposely for months to increase energy costs,’ Sen. John Barrasso, R-Wyo., ranking member on the Senate Energy and Natural Resources Committee, said in a disapproving statement on the proposal.
‘President Biden should follow the law and hold required American oil and gas lease sales. He should issue a robust five-year plan. That’s the right way to unleash American energy production and lower prices for American families.’
United Kingdom lawmakers in July imposed a 25 percent 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.
Biden has been attacking oil executives’ profits for months and last week Exxon CEO Darren Woods pushed back against the president’s assertions that executives were hoarding profits.
‘There has been discussion in the US about our industry returning some of our profits directly to the American people,’ Darren Woods said on the company’s third quarter earnings call, according to Bloomberg News. ‘That’s exactly what we’re doing in the form of our quarterly dividend.’
The White House responded through Biden’s official Twitter account.
‘Can’t believe I have to say this but giving profits to shareholders is not the same as bringing prices down for American families,’ the tweet said.
Americans have struggled with painfully high gasoline prices in recent months, paying more than $4.80 on average for a gallon of regular at the beginning of July, according to AAA.
They’ve since fallen to $3.76 on average nationally, but the White House says they should be lower, given declines in global oil prices over the same period.
President Biden is trying to bring down gas prices ahead of midterm election
The Biden administration has been visibly frustrated with the among of money energy companies are making – above oil drilling in Wyoming
Biden has been critical of energy companies profits since at least June, when he complained publicly that ‘Exxon made more money than God this year.’
Biden has already released an unprecedented 180 million barrels of oil from the Strategic Petroleum Reserve he pushes the industry to ramp up production.
Last Friday Biden said that six of the largest oil companies made ‘$70 billion in profit’ last quarter.
‘I’m going to keep harping on it. They talk about me picking on them, they ain’t seen nothing yet. I mean it. It outrages me.’
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