He urged Congress to raise their taxes if production is not increased.
President Joe Biden has urged Congress to increase taxes on oil and gas companies’ profits if they do not act to boost oil production. This is the latest strategy of the White House to attempt to bring down prices at the pump and fight inflation.
The president’s comments came less than a week after major oil companies Exxon, Mobil, Chevron, and Shell Oil reported quarterly profits totaling about $40 billion.
The White House said the president is again calling on oil and gas companies to “invest their record profits in lowering costs for American families and increasing production” and if they do not, he will call on Congress to “consider requiring oil companies to pay tax penalties and face other restrictions.”
Business groups and the oil industry say the latest calls are politically motivated and will not help bring down prices.
“Experience proves that adding new taxes to punish companies actually hurts consumers,” said Neil Bradley, executive vice president and chief policy officer of the U.S. Chamber of Commerce. “In this case, it will raise gasoline prices by removing the incentive to produce and refine more oil. To lower our energy costs we need a long-term energy strategy focused on boosting production, not finger-pointing.”
Energy analysts have dismissed accusations that oil companies are keeping prices high through anti-competitive behavior, noting that previous gasoline price gouging investigations over recent decades have not proven any wrongdoing.
As the Lord Leads, Pray with Us…
- For discernment for the president and his economic advisors regarding inflation.
- For U.S. economic, energy, and commerce officials as they assess the state of oil and gas pricing and availability.
- For wisdom for members of Congress as they consider the president’s request.
Sources: Politico, NY Times
