Biden threatens oil companies with higher tax

US President Biden warned, on Monday, that oil companies would face a “higher tax” on their excess profits if they don’t reinvest in increasing output so as to bring prices at the pump down.

“They have a responsibility to act in the interest of their consumers, their community and their country, to invest in America by increasing production and refining capacity,” Biden said of the companies during a speech on Monday afternoon.


“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” he added in the remarks from the White House just more than a week before the midterm elections.

Biden cannot unilaterally impose a tax on companies; he would need a new law to pass Congress. He pledged to work with the legislature to look at his options.

His comments come after ExxonMobil, Chevron and Shell reported high third quarter earnings. The US president name-checked both Exxon and Shell in his speech.