US President Joe Biden has threatened to seek a new windfall profits tax on major oil and gas companies unless they ramp up production to curb the price of gas at the pump, an escalation of his battle with the energy industry just a week before the midterm elections.
The president lashed out against the giant firms on Monday (Tuesday NZT) even as several of them reported the latest surge in profits, which he called an “outrageous” bonanza stemming from Russia’s war on Ukraine. He warned them to use the money to expand oil supplies or return it to consumers in the form of price reductions.
“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” Biden told reporters at the White House. “My team will work with Congress to look at these options that are available to us and others. It’s time for these companies to stop war profiteering, meet their responsibilities to this country, give the American people a break and still do very well.”
The president’s semi-embrace of new taxes on the energy industry heartened liberals in his party who have been pressuring him to take action for months. But it was more of a way of pressuring the oil firms than a realistic policy prescription for the new term given that Congress is not even in session and would be even less likely to approve such a measure if Republicans capture one or both houses in next week’s election.
Biden has been eager to redirect public anger over gas prices toward the oil companies and away from himself as Democrats try to overcome historical and popular headwinds to keep power on Capitol Hill. While the price at the pump has fallen significantly since topping out just above US$5 (NZ$8.58) a gallon over the summer, it remains much higher than when Biden took office and contributes to the overall inflation rate, which is at a four-decade high.