WASHINGTON — President Joe Biden will urge Congress to consider new tax penalties on oil and gas companies if they refuse to boost domestic production as the White House looks to curb rising fuel prices ahead of the midterm elections.
The president will speak Monday afternoon at the White House on "major oil companies making record-setting profits even as they refuse to help lower prices at the pump for the American people," according to the White House schedule.
The Associated Press reported Biden would raise the idea of imposing a windfall tax after Exxon Mobil, Chevron and Shell reported record profits last quarter, even as gas prices remain high across the country.
The president is not expected to endorse a specific proposal, but will press energy companies to "invest their record profits in lowering costs for American families and increasing production," a White House official said ahead of Biden's speech. "And if they don't, he will call on Congress to consider requiring oil companies to pay tax penalties and face other restrictions."
Biden and Democrats have sought to blame energy giants for soaring gas prices that may have helped dim their chances in next week's midterm elections, which will determine whether the party retains control of Congress.
The administration has struggled with the political fallout of high fuel costs — which surged to a national average $5 per gallon over the summer — as they look to sell voters on Biden's economic record. The price at the pump is currently about $3.76 per gallon on average nationally, according to AAA.
Biden has repeatedly pressed energy companies to lower prices at the pump, accusing some of collecting record profits amid a global energy crisis that has been exacerbated by the war in Ukraine. But the president is expected to sharpen his rhetoric in Monday's speech and embrace the idea of a windfall tax, a proposal that some progressive Democrats had previously urged the White House to consider.
The economy and inflation remain two top priorities among voters heading to the ballot box on Nov. 8.
Any tax on oil and gas companies is unlikely to muster enough support in Congress, where Democrats would need at least 10 Republicans to overcome a filibuster in the Senate.
The president is the latest Democrat to throw his support behind proposing a tax on excessive profits. Earlier 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.
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