With just days until the crucial vote, President Joe Biden has threatened to seek a new windfall tax on major oil and gas companies unless they invest their record profits in lowering household costs and ramping up production.
A windfall tax is a one-off tax imposed by a government on a company. The idea is to target firms lucky enough to benefit from something they were not responsible for.
Biden said if oil companies did not lower prices at the pump, his administration would work with Congress to require them to pay higher taxes on their excess profits and face other restrictions.
“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” he told reporters at the White House on Monday.
“My team will work with Congress to look at these options that are available to us and others. 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.”
While Biden’s words were welcomed by many Democrats, some Republicans have spoken out against a windfall tax on the energy industry.
“Haven’t American families suffered enough from President Biden’s damaging attack on American-made energy?” asked Representative Kevin Brady of Texas.
Jamie Henn, spokesperson for the group Stop the Oil Profiteering, said: “This is exactly the type of leadership we’ve been waiting for from President Biden.”
