Biden floats taxing oil companies amid rising energy prices

In a Monday speech, President Joe Biden proposed taxing oil companies currently raking in high profits amid rising energy prices.

While floating the tax, he said oil companies "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," per The Hill. "If they don't, they're going to pay a higher tax on their excess profits and face other restrictions."

Oil companies have brought in considerable profits as Americans battle with the rising cost of gas. Though prices hit their peak in June after clearing $5 per gallon for the first time in U.S. history, the average price has remained high with a gallon currently costing $3.76, according to AAA.

The president has previously called on oil and gas companies to lower prices at the pump. "Look, my message is simple," Biden said in September. "To the companies running gas stations and setting those prices at the pump: Bring down the prices you're charging at the pump to reflect the cost you pay for the product. Do it now. Do it now."

They have, however, largely ignored his pleas and prices remain high. Instead, Biden has turned to tapping the Strategic Petroleum Reserve, an emergency supply of fuel, to lower prices. Industry insiders, however, have warned that the president was using the SPR like a "campaign credit card" to purchase political capital ahead of the midterm elections.

At least some Democrats have voiced support for the plan. "Senator [Sheldon] Whitehouse [D-R.I.] and I have been calling for a windfall profit tax on Big Oil for months and I'm thrilled to see President Biden publicly consider this approach," said Democratic California Rep. Ro Khanna, per The Hill.