Biden poised to float windfall tax on energy producers – AP

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Oil company stocks pull back from earlier gains following an Associated Press report Monday that President Biden will raise the possibility of imposing a windfall profits tax on energy companies.

Biden will deliver remarks to respond “to reports over recent days of major oil companies making record-setting profits even as they refuse to help lower prices at the pump for the American people,” AP said, citing an unnamed White House source.

The S&P 500 Energy Index trimmed its gain to 0.3%, after rising as much as 2% earlier in the day.

Congress would need to approve any additional taxes on energy producers, which would be difficult, particularly if Republicans take control of one or both chambers in the November 8 elections.

ETFs: (NYSEARCA:XLE), (XOP), (VDE), (OIH), (CRAK), (DRIP), (GUSH)

Last week, Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) raked in more than $30B in combined profits, reviving calls from politicians and consumer groups to impose more taxes on the companies.

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