Forex News

Biden to float a windfall tax on energy producers but it will be tough to pass it

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Biden is set to speak on oil companies later today and the AP now reports he will float the idea of a windfall tax on energy producers.

This is undoutedly an election ploy.

It would take an act of Congress to change the tax rules. First of all, the odds of Democrats holding onto both the House and Senate are low. Secondly, they would need to expand their Senate lead by at least one seat because there’s no way Joe Manchin would support this.

Exxon shares are down on this but I think the market will figure it out before long.

WTI crude oil is down $1.72 to $86.56 today.