Michael Burry Criticizes EU Over Windfall Tax on Oil Companies: 'Short Signing Is Where All Governments Operate'

"The Big Short" investor Michael Burry, who rose to prominence betting against the housing market as the 2008 financial crisis approached, has expressed skepticism as for the myopia of governments.< /p>

Quoting a Wall Street Journal article about Exxon Mobil Corp XOM suing the European Union for its decision to impose a windfall tax on energy companies, Burry criticized the myopic view governments.

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"Myopia is the area in which all governments operate. But the EU is truly demonstrating that there is no natural pendulum forcing people from stupid to smart," said he tweeted.

Oil companies posted record quarterly profits, benefiting from high energy prices due to the Russian-Ukrainian conflict, leading to renewed calls to tax the sector.< /p>

Exxon's stock price has jumped more than 70% in the past year on record earnings. Share prices of companies such as Chevron Corporation CVX and BP plc BP also rose significantly during the period.

Exxon spokesman Casey Norton reportedly said the windfall tax is "counterproductive", discourages investment and undermines investor confidence. "Whether we invest here depends primarily on Europe's attractiveness and global competitiveness," Norton said.

The new tax will take effect on December 31 and will apply a levy of at least 33% on any taxable profit in 2022-23 that is 20% or more above average profits between 2018 and 2021 .

It's not just the EU that has taken a tough stance against the oil companies. In late October, President Joe Biden blasted energy companies, saying they had a responsibility to act beyond the interests of their executives and shareholders with "historic" profits from soaring oil prices. p>

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