Biden proposes tax on energy company profits ahead of midterms

Biden said energy companies are "war profiteering."

Updated: November 1, 2022 - 9:17am

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President Biden is proposing a tax on oil and gas companies, saying the energy sector is "war profiteering" and that his plan will give Americans a financial break – one week before the midterm elections.

Biden said Monday that energy companies are failing to meet their "responsibility to act in the interest of their consumers."

"They’re going to pay a higher tax on their excess profits and face other restrictions," said Biden, amid gasoline and other other energy prices that have soared since the start of Russia's war against Ukraine and have become a major headwind for Democrats seeking election or reelection Nov. 8.

"It’s time for these companies to stop war profiteering, meet their responsibilities to this country, and give the American people a break and still do very well," the president also said.

Biden's proposal is unlikely to be implemented due to hurdles in Congress, with members in their home states campaigning. 

The average price for a gallon of regular gas in the U.S. is $3.75, according to price monitor AAA.

Fuel prices have increased under the Biden administration but rose sharply after Russian President Vladimir Putin invaded Ukraine. Average prices are still below the all-time high of $5.02 a gallon in June.