U.S. Economic Officials Says Biden Considering Oil & Tax Windfall Tax

A White House economic advisor told a panel on Thursday that the Biden administration is now considering the U.S. congressional proposal that would place a windfall tax on oil and gas as prices at the pumps continue to soar, Reuters reports.

"We are very much open to any proposal that would provide relief to consumers at the pump," National Economic Council deputy director Bharat Ramamurti told a Roosevelt Institute panel, as cited by Reuters.

Ramamurti said the White House was “engaging in conversations” with Congress about a windfall tax, noting there was a “variety of interesting proposals”.   

The National Economic Council official also noted a potential impact on supply if a windfall tax were imposed, though he said he did not see this as an “insurmountable hurdle”, Reuters reported. 

Ramamurti’s comments came just a day after the National Economic Council deputy director told reporters that Biden’s plan to combat inflation included lowering the budget in part by raising taxes on America’s wealthiest and the country’s big businesses. 

“What the president has done and made clear is that we are dedicated to doing everything we can to stop and push back on that Russian aggression, but it’s going to cause pain for American consumers in the short term, and gas prices are one unfortunate example,” Ramamurti told local media. 

On Thursday, the national average for a gallon of gasoline in the United States hit $4.715, up from $4.671 on Wednesday, according to AAA. Brent crude was trading at nearly $118 and WTI at $117. 

Talk of a potential windfall tax in the United States follows a move by Hungary to impose taxes on extra profits for large companies across industries, in order to subsidize consumer energy bills and defense. It also follows an announcement on May 26 that the UK would implement a windfall tax on energy first in the North Sea. 

By Charles Kennedy for Oilprice.com

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