Biden’s Flim-Flam Windfall Profits Tax
“Dumb and Dumber” is a 1994 comedy; today it could describe a tragedy … Joe Biden’s energy policy. His latest gambit is to call for a windfall profits tax on oil companies, accusing them of “war profiteering.” He says the large earnings being raked in by oil giants like Exxon and Chevron “are not because of doing something new or innovative.” Instead, Biden said, “Their profits are a windfall of war…”
To be clear, Mr. Biden has no idea whether oil producers are doing anything innovative. While he has met with the leaders of numerous industries and Big Labor groups, he has childishly refused to meet with oil industry executives. I’m pretty sure he has never visited a drilling site or offshore production platform, where advanced American technology — the best in the world — is on display.
If he talked with industry executives, they might point out that energy is cyclical; the price of oil rises with demand, unless supply goes up more. They might remind him that Exxon lost $22 billion in 2020 because prices fell during the pandemic; naturally Exxon didn’t receive a government handout to compensate them for that gigantic loss. Why should the firm be penalized when prices go back up?
The president is flailing, desperate to haul out something — anything — to show voters he’s acting to lower gasoline prices. But this is utter flim-flam. Only Congress can impose a windfall profits tax on energy companies, a proposal that would land well with liberal Democrats but is likely to find zero support among Republicans.
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Published in The New York Sun
