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Dear John,
While you pay through the nose at the gas pump, Big Oil is lining its pockets.
Exxon just reported second-quarter profits of $17.9 billion, more than three times what it pocketed a year ago. Chevron’s profit more than tripled to $11.6 billion. The two giant American oil companies aren’t pouring their spoils back into energy, green or otherwise. They’re buying back their shares of stock at record pace to reward investors and executives.
Our latest video explains how we can lower gas prices and stop the transfer of wealth from our pockets into the hands of Big Oil.
Companies like Exxon and Chevron could easily absorb the higher costs of crude without charging so much at the pump, but due to their gigantic market power, they can get away with raising prices more than their costs are rising.
Yes, inflation is a very real problem. But American corporations are using it as cover to line their pockets.
The annual U.S. inflation rate was 8.6% in May. Meanwhile, gas prices rose a whopping 47%!
Big Oil is getting away with highway robbery, and lower-income people are disproportionately taking the hit. Not only are they less likely to work from home, but they’re more likely to commute longer distances in order to afford housing – spending more on gas in the process.
So what can we do about all this? Hit gas companies with a windfall profits tax.
A windfall tax is aimed at profits that come from taking advantage of a crisis, such as were imposed in World War II. Britain’s Conservative government just enacted a 25 percent windfall profits tax on oil and gas giants, with the revenue going to lower-income households hit hardest by rising prices.
If Britain’s conservatives can do it, so can we.
There’s a windfall profits tax bill currently in the U.S. Congress that is estimated to recoup $45 billion per year, which would be rebated directly to consumers. This is exactly what we need to stop the gush of money flowing from consumers to Big Oil and its investors.
It’s good policy, good politics, and it’s the right thing to do. Call your representatives and urge them to support it.
Thanks for watching,
Robert Reich
Inequality Media Civic Action
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