December 7, 2022

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Biden calls on oil and gas companies to stop "winning the war" and threatens unexpected taxes

Biden calls on oil and gas companies to stop “winning the war” and threatens unexpected taxes

WASHINGTON (Reuters) – U.S. President Joe Biden on Monday called on oil and gas companies to use their record profits to cut costs for Americans, increase production or pay a higher tax rate as he battles high pump prices as the election approaches. In a week.

In remarks at the White House, Biden criticized the big oil companies that are making big profits while Americans, tired of inflation, are paying a large sum to fill their cars.

He said the oil industry “has not fulfilled its commitment to invest in America and support the American people.” Biden said they are not only making a “fair return,” but they are making “a profit so high that it’s hard to believe.”

“Their profits are windfalls from the war,” he said of the conflict sweeping Ukraine, and they have a responsibility to act.

“I think it’s outrageous,” he said. If they passed those profits on to consumers, he said, gasoline prices would drop by about 50 cents.

“If they don’t, they will pay a higher tax on their excess earnings, and they will face other restrictions,” he said. The White House will work with Congress to consider these and other options. “It’s time for these companies to stop profiting from war.”

Biden said oil and gas companies should invest their profits in cutting costs for Americans and increase production and if they don’t, he will urge Congress to consider requiring oil companies to pay tax penalties and face other restrictions.

The president held the event a week ago until Americans decide whether Democrats will remain in control of the US Congress. Republicans prefer to take command of the House of Representatives, while the Senate is seen as neglectful.

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Global energy giants including ExxonMobil (XOM.N) and chevron company (CVX.N) It posted another round of massive quarterly earnings, benefiting from higher natural gas and fuel prices that have boosted inflation around the world and led to fresh calls for more taxes on the sector.

Energy experts believe that whether Democrats or Republicans take control of Congress, passing a law that would tax energy companies to generate excess profits would be difficult.

It has been the White House for months Taking into account the Congressional proposals that could tax the profits of oil and gas producers as consumers suffer from rising energy prices.

British lawmakers in July approved a 25% windfall tax on oil and gas producers in the British North Sea that was expected to raise five billion pounds ($5.95 billion) in one year to help people struggling with rising energy bills.

(Additional reporting by Steve Holland, Andrea Shalal and Katherine Jackson). Written by Steve Holland Editing by Caitlin Webber, Heather Timmons and Margarita Choi

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