Biden offers tax to oil companies on ‘surplus profits’

“Because they don’t want to, there is an opportunity to do this, lower prices for consumers at the gas station, but If they don’t, they will have to pay a higher tax on their excess profits. Speaking from the White House, Biden faces other constraints,” he said. The US president also said he is working with lawmakers in Congress to consider these options.

Biden framed his proposal in the context of record profits by major oil companies as the country results Russian invasion of UkraineThis turned the international energy market upside down.

The current much-criticised president the decision of the parent companies not to increase their oil refining capacity, He argued that the benefits of these companies were not due to any innovation, but to the tragic state of the war.

“I’m a capitalist, I have no problem with companies getting a fair profit for their investment and innovation, but that’s not even remotely what’s happening,” he assured.

Biden quotes the numbers Profits of the six largest oil companies in the USAIt has made a profit of 100,000 million dollars in the last 6 months.

According to this source, fuel companies take advantage of gas stations instead of increasing their domestic production capacity to reduce fuel prices at gas stations. buy back shares and thus pay higher dividends to shareholders.

unexpected taxes An idea proposed by some economists such as Nobel laureate Joseph Stiglitzto deal with inequality exacerbated by events such as the pandemic or the war in Ukraine.