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Biden to Raise the Possibility of a ‘Windfall Tax’ on Energy Companies - AP News

Published 10/31/2022, 12:45 PM
Updated 10/31/2022, 12:49 PM
© Reuters. Biden to Raise the Possibility of a ‘Windfall Tax’ on Energy Companies - AP News

By Sam Boughedda

U.S. President Joe Biden will discuss the possibility of imposing a windfall tax on energy firms, according to a report by AP News on Monday.

AP quoted the White House as saying the President will make the remarks following "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.”

It comes as the Biden administration aims to combat high oil and gas prices days before the midterm elections.

The report, citing sources familiar with the matter, reveals that Biden will raise the possibility of imposing a tax on the profits of energy companies in order to pressure them to lower prices for consumers.

Over the weekend, Biden tweeted that "oil companies made billions in profits this quarter" and "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 energy prices have fueled the inflation surge this year.

Last week, Exxon Mobil (NYSE:XOM) reported a record-breaking profit, while Chevron (NYSE:CVX) reported $11.23 billion in profits, almost hitting its record from the prior quarter.

Latest comments

Ignorant right wing trolls, bots and minions base all your assumptions on fact free right wing propaganda fed to you by your fascist elite masters. You're standing on the pavement outside their gates, guarding their mansions, hoping one day they will throw some scraps your way. But they never do..
Kinda like the deplorable pro-Putin Russians mobilized by him w/out training nor supplies.
a windfall tax to a liberal is when any private business makes $1.98. Biden thinks only the government should make money off the backs of the middle class.
what planet are you on? it will put but a dent on the oil&gas multinationals quarterlies, and benefit everone else
@Jihn Hill: Is that what Biden thinks? Or is that pablum you feed yourself to keep from thinking?
Where's the # $1.98 from?
Another case of a writer with no understanding of the economics involved in the price of gasoline. The big oil companies don't set the price for a barrel of oil, the free market does. Big oil can't lower the price of gasoline whether they want to or not. They benefitted from traders running up the price of oil, however again they have no ability to affect the price. Biden and writers such as this one need to quit showing their ignorance. The free market will or will not work it out, and that's just the way it is and will be. No politician can impact the price except in a negative way by increasing taxes that just get passed on to the consumer.
Contradiction:  "The big oil companies don't set the price for a barrel of oil, the free market does." & yet you later claim "increasing taxes that just get passed on to the consumer"
  As often happens, my words went right over your head.
  Not disputing what you said, but the op's & my post in this thread is about oil companies' ability to "set the price for a barrel of oil".  But to your point:  during covid, big tech had increased demand, but didn't really raise prices.  (Compare tech inflation rate to inflation rates of other categories.)  And unlike w/ big tech, current high oil/gas prices benefit a war-mongering, war criminal, crime-against-humanity, foreign nuke-apocalypse-threatening *******nation that caused the current high oil/gas prices w/ energy weaponization and needs money to continue its evil ways.
What windfall? They work for their paycheck, Joe.
Biden has no clue how the market works. Just another regressive tax pushed by a senile empty suit.
Windfall tax is, by definition, progressive.
He keeps pushing bad progressive policies . Instead of a windfall tax , he should invoke a DPA on gas , oil & refining
What’s wrong with capitalism Joe ?Your handlers don’t like it huh .
Biden is a lying bum.
Couple of folks lie on this forum about another oil windfall tax, allegedly made by Reagan. Actually, it was Carter-made law that Reagan repealed, after long struggle with US Controlled by Dems. This story told in truthful way just confirms Biden’s Carter 2.0 status.
 I said "Throughout most of Reagan's term, the Crude Oil Windfall Profits Tax (P.L. 96-223) was in effect."  That is true.  I didn't day Reagan originated this tax.  Think correlation, not causation.
And Brad was talking about "Regan".  I'm not sure who he/she is or did.
  As least your not disputing the truth of my post this time. Some people interpret some truths as "gaslighting" because they find such truths to be "inconvenient".
Not sure why people always miss the fact that companies do not pay this "Tax". We do!. Companies simply pass the cost onto the consumer. No matter what it is. Higher wages, Higher material cost, Higher taxes... doesn't matter. Companies will not simply eat this expense. Yet the government always thinks that they are going to "make them pay"... the people that get hit hardest are the low/middle class. Always.
Alrighty then, let's make the cost of energy continue its steep rise.
You mean like Regan did?
if you're gonna be lazy and steal first last comment, at least spell Reagan correctly.
Americans driving around in 5 liter, V8 pick up trucks, complaining about how much they spend on petrol. Don't get me started
c'mon, leave the billionaires alone. they need the money for more yachts
GREAT IDEA! Let's discourage future investment so the costs continue to rise. /sThis is what a career politician comes up with.VOTE THESE PEOPLE OUT!!!
The WindBag wants a WindFall tax.
mare damaging policys to add to poor ones he already has in place
This is all talk to look good before the midterms. Maybe we can tap this new energy source...all the hot air coming out of Joe's mouth.
he can talk all he wants but he won't have any say once the dems lose house and senate
Throughout most of Reagan's term, the Crude Oil Windfall Profits Tax (P.L. 96-223) was in effect.
Biden/Democrats may not seriously try to impose a windfall tax.  Aim may be just to put oil companies on notice not to profiteer too rapaciously.
Windfall tax on energy companies is the guaranteed way to ensure permanent shortage of energy. Also, if Biden and similar organisms are envious to oil company profits, then they can buy oil stocks and be happy, though leeching public treasury is likely more preferable for them.
How many billions in revenue have Federal and state governments received in royalties and taxes from oil companies?  Why not return to those to taxpayers?  He should call out the states and Federal government for profiting from high oil prices
I bet yhat tax goes to tge American people what an ***
Should have added that tax to the social media companys a couple years ago. What a complete incompetent president.
why would oil companies invest in products when you (Biden) told them you will put them out of business...
No one wanted to through oil companies a life preserver when they had years of bleeding losses.
  That was from the companies taking on too much loans and ramping up production too quickly.  The gov't didn't force them to do that.
That’s the lesson they learned from 2014-2016. That’s why they are prudent now, while the current administration has said so many hostile words on this industry
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