Biden floats tax on oil companies that don't lower pump prices, increase production

[aubiefifty 18,250]

Biden floats tax on oil companies that don't lower pump prices, increase production

Maureen Groppe and Michael Collins, USA TODAY

Mon, October 31, 2022 at 4:06 PM

 

 

In this article:

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  Joe Biden

  President of the United States since 2021

 

 

WASHINGTON – President Joe Biden on Monday accused oil companies of "war profiteering," threatening to go after their "outrageous" profits if pump prices don't fall.

Unless the industry passes some of those profits onto consumers and increases domestic production, Biden said he will work with Congress to impose a tax on "excess profits," along with other restrictions.

"It’s time for these companies to stop war profiteering," Biden said in brief remarks at the White House. "The American people will judge who is standing with them and who is only looking out for their own bottom line."

The head of the American Petroleum Institute, the top lobbying group for the oil and gas industry, said Biden's proposal would backfire.

"Increasing taxes on American energy discourages investment in new production, which is the exact opposite of what is needed," Mike Sommers, API's president and CEO, said in a statement.

Biden's move comes days before the Nov. 8 midterm elections. Polls show inflation is a top concern of voters and gas prices are one of the most visible signs of pocketbook pain.

The national average price at the pump is down since the summer peaks but is still 36 cents higher than a year ago, according to AAA.

Looking ahead: As global oil production is reduced, will gas prices increase or decrease?

No inflation relief: Winter utility bills to cancel gas savings.

 

A man pumps gas into his suv at an Exxon gas station on September 21, 2022 in Los Angeles, California.

Getting a new tax through the current Congress would be difficult and would likely become impossible if Republicans take control of the House in next week’s elections. Republicans say the administration should lower regulatory barriers if it wants to increase energy production.

Still, the White House has been hammering away on the issue to show Biden is trying to ease the high gas prices he says are the fault of oil producers and Russia’s invasion of Ukraine.

Less than two weeks ago, Biden announced the tail end of an historic release of 180 million barrels of oil from the Strategic Petroleum Reserve that he’d ordered in March to lower pump prices.

He complained that “outsized industry profit margins” were adding more than 60 cents to the average price of a gallon of gas.

"Rather than increasing our investments in America, or giving American consumers a break, their excess profits are going back to their shareholders and buying back their stock so their executive pay is going to skyrocket," Biden said Monday. "Give me a break."

Exxon Mobil had a record-breaking third quarter profit of $19.66 billion in net income, according to the Associated Press. Chevron’s $11.23 billion in profits nearly matched its second quarter record profits.

Sommers, the head of API, said oil companies do not set prices for their product.

"Global commodities markets do," he said.

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This article originally appeared on USA TODAY: Biden attacks high profits of oil and companies, floats possible tax

[I_M4_AU 8,940]

Is this even legal?  Taxing corporations that don’t do what you want in time for the midterms?  He tried the Saudi’s and now he turns to tax American corporations he has threatened to drive them out of existence.  Bold move.

ETA: we are not at war.

Edited October 31, 2022 by I_M4_AU

[Elephant Tipper 430]

Biden is just a very dumb man being advised by even dumber ideologues.

[homersapien 12,239]

On the one hand, Republicans love to point to high gas prices as a key criteria that Biden should be judged by.

On the other hand, if he actually tries to do something directly to lower them, he's an anti-capitalistic idiot being advised by ideologues.

[Elephant Tipper 430]

8 minutes ago, homersapien said:

On the one hand, Republicans love to point to high gas prices as a key criteria that Biden should be judged by.

On the other hand, if he actually tries to do something directly to lower them, he's an anti-capitalistic idiot being advised by ideologues.

On the other hand, if Biden wouldn't talk out of both sides of his mouth and actually promote the means of bringing oil to market instead of demanding like a desperate, self-centered, ignorant child, then we'd have more oil, which Biden promised would never happen under his Presidency.  "Mr. Biden said, “I would transition away from the oil industry, yes,” in response to Trump’s question “Would you close down the oil industry?”

Biden declares end to oil - CFACT

Biden has had Climate Czar John Kerry and Treasury Secretary actually go the banks which loan to the oil industry and pressured them to stop.  They are succeeding.  

Producing more oil is in the interest of oil companies in order to make more money and enhance shareholder value, but when Biden and other Dems push policies that make drilling uncertain for financial gain, then the oil companies won't produce as much.  Taxing a good always causes less of that good to be produced.  Thinking that taxing an item will cause more of it to be produced shows that Biden doesn't understand basic business, ie, Biden is DUMB.

[homersapien 12,239]

11 minutes ago, Elephant Tipper said:

On the other hand, if Biden wouldn't talk out of both sides of his mouth and actually promote the means of bringing oil to market instead of demanding like a desperate, self-centered, ignorant child, then we'd have more oil, which Biden promised would never happen under his Presidency.  "Mr. Biden said, “I would transition away from the oil industry, yes,” in response to Trump’s question “Would you close down the oil industry?”

Biden declares end to oil - CFACT

Biden has had Climate Czar John Kerry and Treasury Secretary actually go the banks which loan to the oil industry and pressured them to stop.  They are succeeding.  

Producing more oil is in the interest of oil companies in order to make more money and enhance shareholder value, but when Biden and other Dems push policies that make drilling uncertain for financial gain, then the oil companies won't produce as much.  Taxing a good always causes less of that good to be produced.  Thinking that taxing an item will cause more of it to be produced shows that Biden doesn't understand basic business, ie, Biden is DUMB.

You missed my point.  It doesn't matter what Biden does.  He could have done just the opposite of what your are saying and it wouldn't matter to you (or the oil companies, or the price of gas).

Oil and gas prices are the domain of international corporations and a few authoritarian petro-states.  Meanwhile, U.S. oil companies are making record profits and consequently, they aren't about to reduce prices until they have to.  (And our government won't be forcing them them.)

(And I thought we ran you off years ago.  Why are you back?)

 

 

[icanthearyou 4,468]

1 minute ago, homersapien said:

U.S. oil companies are making record profits

And,,, helping Putin.  Very patriotic.

[icanthearyou 4,468]

The oil companies are taxing society.  It was their choice to limit production.  It is their choice to aid Putin.

Their record profits are benefiting only a tiny fraction of Americans at the expense of everyone else and, to the detriment of a peaceful, free world.

Interesting watching Republicans become pro-Russia.

[SaltyTiger 8,575]

48 minutes ago, icanthearyou said:

And,,, helping Putin.  Very patriotic.

No. Biden helping Putin. Oil companies do not like Biden and with good reason.

https://www.reuters.com/business/energy/deep-rift-lies-behind-bidens-criticism-oil-gas-industry-2022-06-22/

Your administration has largely sought to criticize, and at times vilify, our industry," Chevron (CVX.N) CEO Michael Wirth wrote in an open letter to Biden released on Tuesday. read more

 

[Elephant Tipper 430]

26 minutes ago, homersapien said:

You missed my point.  It doesn't matter what Biden does.  He could have done just the opposite of what your are saying and it wouldn't matter to you (or the oil companies, or the price of gas).

Oil and gas prices are the domain of international corporations and a few authoritarian petro-states.  Meanwhile, U.S. oil companies are making record profits and consequently, they aren't about to reduce prices until they have to.  (And our government won't be forcing them them.)

(And I thought we ran you off years ago.  Why are you back?)

 

 

You say that every time I post after being absent for a while.  Apparently, you think that my presence is dependent upon you.  You think yourself too important in life.  Smh Gomer.  The question is, Why do you live here ?  In times past you would fill half the forum with your posts and then half of the comments in each post would be yours, as if being on this forum is the only thing happening in your life Gomer.

No, didn't miss your point and you are wrong.  If Biden actually promoted the production of petroleum products, then the price would drop, but you, like other green-energy supporters are okay with Biden talking out of both sides of his mouth, just so long as he doesn't promote the oil industry, which he doesn't.  Please tell me how Biden has promoted the production of oil ?  He hasn't, that's why he's going to the Saudis, whom he declared evil, and the Venezuelans who are Marxist country.  Neither is so evil to Joe when he needs oil to win an election for his party.  

The oil industry had record losses during COVID, or didn't you know.  Profits and losses in the petroleum industry vacillate dramatically, but good ol' Joe apparently, like you, doesn't know that.

And NO, the prices for petroleum products are not established "by international corporations and a few authoritarian petro-states".  The prices for petroleum products are established on the futures markets based primarily on the CME (Chicago Mercantile Exchange).

From the EXACT day of Joe's election, the prices of petroleum products have risen dramatically because of Biden't policies which he has stated during the debates.   In response to DJT's policies, including Keystone, the price of oil dropped in the futures market to below $10/bbl (barrel).  In response to Biden's election, the price rose from less than $34/bbl and has steadily risen ever since.  The futures market votes on the policies that affect the petroleum industry and ever since Biden has been in office the futures market has determined that Biden's policies were going to make oil more expensive, which has occurred.  Oil already reached $100/bbl long before Russia invaded Ukraine.

So, America went from below $10/bbl because of DJT's policies to $100/bbl because of Biden's policies.  Biden thinks that taxing oil companies is going to make them comply with his demand of more oil ?  He's just a  dumb, dumb, VERY DUMB person.

[Elephant Tipper 430]

Btw Gomer, thanks for letting me know that I get under your skin. 🙂

[Elephant Tipper 430]

2 hours ago, homersapien said:

On the one hand, Republicans love to point to high gas prices as a key criteria that Biden should be judged by.

On the other hand, if he actually tries to do something directly to lower them, he's an anti-capitalistic idiot being advised by ideologues.

Do you, or don't you know that just about every single item bought or sold in the world market has the price of oil figured in to its bottom line ?  The price of your electronics, your food, clothing and shelter, your medicines, even your precious green energy......is based on the price of OIL, so naturally, when the price of oil increases to exorbitant highs, then we have inflated prices of goods.  Biden is cutting his own throat to serve people like you who apparently don't care what inflation havoc he creates, just so long as it's "green", or, actually, only appears to be green.

So, saying good night to you Gomer from my oil-based keyboard.....good night !

[homersapien 12,239]

1 hour ago, Elephant Tipper said:

Btw Gomer, thanks for letting me know that I get under your skin. 🙂

Oh, I get it.  "Gomer" is a play on "Homer"!

Very good!

Edited November 1, 2022 by homersapien

[homersapien 12,239]

28 minutes ago, Elephant Tipper said:

Do you, or don't you know that just about every single item bought or sold in the world market has the price of oil figured in to its bottom line ?  The price of your electronics, your food, clothing and shelter, your medicines, even your precious green energy......is based on the price of OIL, so naturally, when the price of oil increases to exorbitant highs, then we have inflated prices of goods.  Biden is cutting his own throat to serve people like you who apparently don't care what inflation havoc he creates, just so long as it's "green", or, actually, only appears to be green.

So, saying good night to you Gomer from my oil-based keyboard.....good night !

Yep.  That's why I voted for him.  Because I knew he would "cut his throat" to serve people like me. You nailed it!

And you also got the "green" part right.  AGW is nothing but a hoax to benefit scientists and people like me.

(Please keep that on the down low. I'd hate for the truth to finally get out. )

Edited November 1, 2022 by homersapien

[homersapien 12,239]

[SaltyTiger 8,575]

7 minutes ago, homersapien said:

Yep.  That's why I voted for him.  Because I knew he would "cut his throat" to serve people like me.

You nailed it. 

And you also got the "green" part right.  AGW is nothing but a hoax to benefit people like me. 

(Please keep that on the down low. I'd hate for the truth to get out .)

Sure republicans are going to use gas prices for mid terms. You know and understand. I don’t feel they are outrageous right now and doubt you do. As a country we are accustomed to “cheap gas”.

Important would be seeing energy prices stabilized. Economically we live by projections and tough to do right now.