AP Source: Biden to impose windfall tax on energy producers | WGN 720 Radio

WASHINGTON (AP) — President Joe Biden will raise the possibility of a “windfall tax” on energy companies on Monday as his administration seeks to combat high gas prices in the days before the midterm elections.

The White House said Biden would make the remarks to respond “to reports in recent days that major oil companies have enjoyed record profits even as they refuse to help lower pump prices for the American people.” A person familiar with the matter said Biden plans to impose a tax on energy company profits as he seeks to force them to lower prices for consumers. The person spoke on condition of anonymity to review Biden’s remarks.

“Oil companies made billions in profits this quarter,” Biden tweeted on Saturday. “They are using these record profits to pay off their wealthy shareholders instead of investing in manufacturing and lowering costs for Americans. This is unacceptable. It’s time for these companies to lower the prices at the pump.”

High gas prices have worsened inflation and badly damaged the credibility of Biden and the Democrats among voters.

Congress would have to approve any additional taxes on energy producers — a tall order in the current Congress, where Democrats have narrow control of the House and Senate, and it’s even less likely that Republicans will take back one or both chambers on Nov. 8.

Exxon Mobil broke third-quarter profit records last week with $19.66 billion in net income, while Chevron reported $11.23 billion in profit, nearly matching the record profits it set in the previous quarter.

Americans have struggled with extremely high gas prices in recent months, paying an average of more than $4.80 a gallon for regular gasoline in early July, according to AAA. They have since fallen to a national average of $3.76, but the White House says they should be lower given the drop 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 lowering prices for American families,” Biden tweeted on Friday.

Biden has been critical of energy company earnings since at least June, when he publicly complained that “Exxon made more money than God this year.”