President Joe Biden on Monday accused oil companies of “war profiteering” as he raised the possibility of imposing a windfall tax on energy companies if they don't boost domestic production.
Biden in brief remarks criticised major oil companies for making record-setting profits while refusing to help lower prices at the pump for the American people. The president suggested he will look to Congress to levy tax penalties on oil tax companies if they don't begin to invest some of their profits in lowering costs for American consumers. The president issued the warning just days before the November 8 midterm elections.
"My team will work with Congress to look at these these options that are available to us and others," Biden said. “It's time for these companies to stop war profiteering, meet their responsibilities in this country and give the American people a break and still do very well.”
Biden took aim at one company, ExxonMobil, that reported $19.7 billion earnings in the third quarter alone. He lashed at the Irving, Texas-headquarter company for using record profits to provide shareholders with hefty stock buybacks but failing to invest in production improvements that would benefit consumers at the pump.
Another oil company, Chevron, had $11.23 billion in profits in the third quarter, almost reaching the record profits it attained in the prior quarter.
“Oil companies. Record profits today are not because of doing something new or innovative,” Biden said. “Their profits are a windfall of war, a windfall for the brutal conflict that's ravaging Ukraine and hurting tens of millions of people around the globe.”
High prices at the pump have exacerbated inflation and have taken a toll on Biden and Democrats' standing among voters.
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 November 8.
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.
“Can't believe I have to say this but giving profits to shareholders is not the same as bringing prices down for American families,” Biden tweeted on Friday.
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's threat of windfall taxes on energy companies follows calls by progressive Democrats, including Bernie Sanders and Elizabeth Warren, for such a proposal.
And last week, California Governor Gavin Newsom called on Congress to tax the profits of oil companies. “Crude oil prices are down but oil and gas companies have jacked up prices at the pump in California. This doesn't add up,” Newsom said on Friday. “We're not going to stand by while greedy oil companies fleece Californians. Instead, I'm calling for a windfall tax to ensure excess oil profits go back to help millions of Californians who are getting ripped off.”