Biden to suggest oil and gas companies pay U.S. windfall tax
WASHINGTON, Oct 31 (Reuters) - U.S. President Joe Biden on Monday will call on oil and gas companies to use their record profits to lower costs for Americans and increase production, or pay a higher tax rate, as he battles high pump prices with elections coming in a week.
Biden will make remarks at 4:30 p.m. (2030 GMT) in response "to reports over recent days of major oil companies making record-setting profits even as they refuse to help lower prices at the pump for the American people," the White House said in a statement.
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A White House official said Biden will again call on oil and gas companies to "invest their record profits in lowering costs for American families and increasing production."
"And if they don’t, he will call on Congress to consider requiring oil companies to pay tax penalties and face other restrictions," the official said.
Biden is making the remarks with a week to go until Americans decide whether his Democrats will remain in control of the U.S. Congress. Republicans are favored to take command of the House of Representatives, while the Senate is viewed as a toss-up.
Whether Democrats or Republicans take control of Congress, passing a law taxing energy companies for excess profits would likely be difficult, energy experts believe.
The White House for months has been considering congressional proposals that could tax oil and gas producers' profits as consumers struggling with higher energy prices.
British lawmakers in July approved a 25% windfall tax on oil and gas producers in the British North Sea that was expected to raise 5 billion pounds ($5.95 billion) in one year to help people struggling with soaring energy bills. (Reporting by Katherine Jackson; Writing by Susan Heavey; Editing by Caitlin Webber, Heather Timmons and Marguerita Choy)