Biden Echoes Newsom’s Windfall Profit Tax Pitch
“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.”
That’s President Joe Biden, who, on Monday, threatened big oil with a windfall profit tax.
1. “Biden Accuses Oil Companies of ‘War Profiteering’ and Threatens Windfall Tax”. In the New York Times, Peter Baker and Clifford Krauss explain:
“President Biden threatened on Monday to seek a new windfall profits tax on major oil and gas companies unless they ramp up production to curb the price of gasoline 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 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.”
2. Follow The Leader.
As Courtney Subramanian reported for the Los Angeles Times, “The president is the latest Democrat to throw his support behind proposing a tax on excessive profits. This month, California Gov. Gavin Newsom called for a special legislative session in December for lawmakers to explore passing a windfall tax in the state, where gas prices average $2.50 higher than those in the rest of the country.”
3. “Joe Biden is right: America needs a windfall profits tax on big oil.”
Writing in The Guardian, Robert Weissman, head of Public Citizen, argues that “The case for a windfall profits tax is straightforward…”
“The cost of getting oil out of the ground remains the same. Still, the market price of oil has skyrocketed due to Russia’s invasion of Ukraine. For the integrated major oil corporations, that means they have been able to charge consumers far more, despite their costs remaining flat. Whether you think the companies doing that are displaying unmitigated greed or just following the rules of the market, there’s no question that they are reaping windfall profits – and doing so at consumers’ expense. A windfall profits tax, with the revenue fully rebated to taxpayers, would offset the pain at the pump and limit big oil’s egregious rip-offs … Not surprisingly, the American people overwhelmingly support the idea. They know they are being ripped off, they know it hurts and they’d like something done about it.”
4. Americans are feeling these windfall profit tax vibes.
A Hart Research poll from earlier in the year found: “Eighty percent (80%) of voters favor a windfall profits tax on oil companies, including four in nine voters who strongly favor it.…”
