President Joe Biden will propose taxing energy companies’ profits as the White House attempts to lower fuel prices ahead of the November midterm elections, according to The Associated Press.
Biden will deliver a speech on Monday afternoon in response to large oil companies’ “record-setting profits” and the high price of gasoline, according to the White House. The president, who has previously blamed oil and gas producers for high prices, will suggest imposing a windfall tax on producers’ profits because he wants to push them to bring down gas prices ahead of the midterms, AP reported, citing a person familiar with the matter. (RELATED: ‘Disingenuous’: Biden Says He Hasn’t Stopped Oil Production. Here’s The Reality)
After peaking in June, gas prices are still $1.38 higher than they were when Biden took office, according to the Energy Information Administration. The White House is scrambling to blame major oil companies for high prices at the pump as it is concerned that such costs could hurt Democrats’ odds of winning key midterm races, according to The Washington Post.
WASHINGTON, DC – OCTOBER 27: U.S. President Joe Biden walks to speak with members of the press prior to his Marine One departure from the White House on October 27, 2022 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)
Biden announced Oct. 19 that his administration would be releasing 15 million barrels of oil from the nation’s emergency petroleum reserves to lower gas prices; however, the president said that the move was not politically motivated.
“Oil companies made billions in profits this quarter,” Biden tweeted Saturday. “They’re using these record profits to pay out their wealthy shareholders instead of investing in production and lowering costs for Americans.”
Although Biden has blamed oil and gas companies for not investing enough money into facilities to ramp up production, energy executives believe that the administration’s negative attitude towards the industry is dampening investment, according to a June survey conducted by the Dallas Federal Reserve. At the same time, Biden is pushing the U.S. to phase out fossil fuels and subsidize green energy projects in order to meet his climate targets.
The White House did not immediately respond to the Daily Caller News Foundation’s request for comment.
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