Shortly before the midterm elections in the USA, US President Joe Biden brought the introduction of an excess profit tax for oil companies into play.
“The oil industry has a choice. Either it invests in America by lowering consumer prices at the pump and increasing production and refining capacity. Or it pays a higher tax on its excessive profits and faces further restrictions,” said Biden in Washington.
Biden said those who make such large profits have a responsibility to also act in the interests of consumers, society and the country. His team will work with Congress to explore options. Biden’s Democrats want to defend their majorities in the House of Representatives and Senate in next week’s congressional elections. An excess profit tax, i.e. an additional levy on sharply increased corporate profits as a result of higher oil prices, should have little chance of success in Congress, even if the Democrats narrowly win the election.
