Biden criticizes oil company profits as 'windfall of war'
October 31, 2022
US President Joe Biden criticized the record profits of gas and oil companies in a speech on Monday, calling on the firms to do more to lower prices at the gas pump for consumers.
He described the energy companies profits as "a windfall of war."
Biden's remarks come as gasoline prices remain high in the US, and a point of contention as the country prepares to head to the polls to elect lawmakers next week.
What did Biden say?
Energy giants including Exxon Mobil and Chevron posted massive quarterly profits, getting a boost from rising crude prices in the wake of Russia's invasion of Ukraine.
"At a time of war, any company receiving historic profits like this has a responsibility to act beyond the narrow self interest of its executive shareholders," Biden said.
"If they don't, they're going to pay a higher tax on their excess profits and face other restrictions," the US president said.
Biden said the White House would work with US lawmakers to explore potential tax penalties for companies if they don't boost domestic production and lower prices.
How likely is a windfall tax?
Analysts believe any windfall tax would be difficult to implement.
Additional taxes on energy firms would have to be approved by lawmakers in Congress, where Biden's Democratic Party has a narrow control.
Additional taxes on energy firms would have to be approved by lawmakers in Congress, where Biden's Democratic Party barely controls the Senate at present.
And in midterm elections on November 8, Republicans will have a chance to claim majorities in the House of Representatives or the Senate.
Any tax hikes on energy firms are even less likely to happen if Republicans come out ahead in the polls.
If the Biden administration were able to pass tax penalties on energy firms, that could increase pressure on European allies to do the same.
British lawmakers in July approved a 25% windfall tax for oil and gas producers in the North Sea. The measure is expected to raise 5 billion pounds ($5.73 billion; €5.8 billion).
rs/dj (AP, AFP, Reuters)