President Biden warned oil companies on Monday that they could be hit with “higher taxes” if they don’t help increase production to stop energy prices from going up so fast.
Biden said in a speech at the White House, “They have a responsibility to act in the interest of their consumers, their community, and their country, to invest in America by increasing production and refining capacity.” He said he would find a way to tax them if they didn’t do their part to increase the U.S. oil supply, which has been limited since the Biden administration cut oil production leases on federal land and offshore.
“If they don’t, they’ll have to pay a higher tax on their extra profits and be limited in other ways,” Biden said.
After the pandemic, many Americans went on vacations and did other fun things. This increased the demand for gas, but the supply couldn’t keep up. One effect of this was that gas prices went up. Biden has also said that “Putin’s price hike” is a big reason why prices for things like food and gas have gone up since Russia started its war in Ukraine.
It’s time for oil companies to stop the war profiteering, meet their responsibilities to this country, and give the American people a break at the pump. pic.twitter.com/lpwf0qBtZW
— President Biden (@POTUS) November 1, 2022
But he has also said that the oil industry in the United States is keeping profits for themselves instead of investing them to make more oil. Now that OPEC has said it will cut oil production, the consumer crunch has gotten worse. Biden said on Monday, “The oil industry has not kept its promise to invest in the United States and help the American people.”
The oil industry has a choice.
Either invest in America by lowering prices for consumers at the pump and increasing production and refining capacity.
Or pay a higher tax on your excessive profits and face other restrictions.
— President Biden (@POTUS) October 31, 2022
With this kind of talk, Biden has added to the idea that oil companies are working together to keep gas prices high. He pointed out that big oil companies made a lot of money in the third quarter of 2022, while most American families were struggling to pay for basic needs. But some oil companies say that taxes will have the opposite effect of what was intended.
Big Oil companies' record profits are a windfall of war and this profiteering has got to stop.
@POTUS is right: Congress should consider a windfall profits tax and provide Americans with relief at the gas pump.
@SenWhitehouse and I have a bill to do just that.
— Elizabeth Warren (@SenWarren) October 31, 2022
“Raising taxes on American energy makes people less likely to invest in new production, which is the last thing we need. The president of the American Petroleum Institute, Mike Sommers, told The Hill that people and businesses in the U.S. are looking to lawmakers for solutions, not campaign rhetoric.
.@SenWhitehouse and I have been calling for a windfall profits tax on Big Oil for months to help lower prices at the pump and send money back to hardworking Americans.
— Rep. Ro Khanna (@RepRoKhanna) November 1, 2022
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