Biden is also thinking about a tax on extra profits. A stupid move that will prolong the crisis
A White House economic adviser said Thursday that the Biden administration is considering a U.S. Congressional proposal to impose a tax on oil and gas extra earnings, while pump prices continue to rise. , as Reuters reports .
"We are open to any proposals that may bring relief to consumers at the pump," Deputy Director of the National Economic Council Bharat Ramamurti told a panel at the Roosevelt Institute, as reported by Reuters.
Ramamurti said the White House is "in dialogue" with Congress about an income tax, noting that there is a "variety of interesting proposals."
The National Economic Council official also noted a potential supply impact if a capital gains tax is imposed, though he said he did not see it as an "insurmountable obstacle," Reuters reported.
Ramamurti's comments came just a day after the deputy director of the National Economic Council told reporters that Biden's plan to fight inflation was to cut the budget in part by increasing taxes on America's richest and largest corporations.
"What the president has done and made clear is that we are committed to doing everything possible to stop and repel Russian aggression, but this will cause pain for American consumers in the short term, and gas prices are an unfortunate example of this," Ramamurti told local media.
On Thursday, the national average for a gallon of gasoline in the United States reached $ 4,715, up from $ 4,671 on Wednesday, according to the AAA. Brent was trading at nearly $ 118 and WTI at $ 117.
The idea of a potential tax on extra profits in the United States follows Hungary's decision to impose taxes on the extra profits of large companies in all sectors, to subsidize energy bills and consumer advocacy. However, in the oil sector, it is a stupid decision that will further limit the investments necessary to overcome the oil crisis: without profits you cannot invest. Instead, it would have been more appropriate to tax dividends, forcing companies to reinvest retained earnings in the sector, accelerating the overcoming of production restrictions. But such a solution would not have been demagogic enough … ..
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The article Biden is also thinking of a tax on extra profits. A stupid move that will prolong the crisis comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/anche-biden-pensa-a-una-tassa-sugli-extra-utili-una-mossa-stupida-che-prolunghera-la-crisi/ on Fri, 03 Jun 2022 07:00:06 +0000.