10.31.2022

AP source: Biden to float windfall tax on energy producers

President Joe Biden plans to raise the possibility of imposing a ‘windfall tax’ on oil companies if they don’t boost domestic production

From Associated Press‘ ZEKE MILLER and SEUNG MIN KIM:

WASHINGTON — President Joe Biden on Monday will raise the possibility of imposing a ‘windfall tax’ on energy companies if they don’t boost domestic production, as his administration aims to combat high gas prices just days before the midterm elections.

The White House said Biden will deliver remarks to respond “to reports over recent days of major oil companies making record-setting profits even as they refuse to help lower prices at the pump for the American people.” A person familiar with the matter said Biden will float imposing a tax on the profits of energy companies, as he seeks to pressure them to lower prices for consumers. The person spoke on the condition of anonymity to preview Biden’s remarks.

“The president will again call on oil and gas companies to invest their record profits in lowering costs for American families and increasing production,” a White House official said Monday on the condition of anonymity to discuss Biden’s speech. “And if they don’t, he will call on Congress to consider requiring oil companies to pay tax penalties and face other restrictions.”

“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 have taken a toll on Biden and Democrats’ standing among voters.

The complete Associated Press article, originally published at ABC News.com October 31, 2022, can be accessed here.

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