Democrats Target Oil Giants' Tax Breaks
Both political parties sought to capitalize on populist anger at surging gasoline prices Tuesday, as Senate Democrats unveiled a plan to slash a suite of tax deductions for the nation's five biggest oil companies and Republicans pushed legislation to speed up offshore drilling. The Senate launched debate on the Democrats' proposal to raise $21 billion over the next 10 years — and dedicate that money to cutting the federal deficit — by barring key oil companies from claiming numerous tax deductions and credits.
The Republican-controlled House of Representatives moved in a different direction by beginning deliberations on legislation that would give federal regulators a 60-day window to decide whether to grant offshore drilling permits. Democrats pitched their plan to cut big oil companies' tax breaks as a common-sense approach to trim the federal deficit, which Republicans are eager to accomplish by paring government spending.
The bill takes aim at BP, Exxon Mobil Corp., Shell Oil Co., Chevron Corp. and ConocoPhillips. "It's time for the Big Five to do the right thing for a change and pay their fair share," said Sen. Robert Menendez, D-N.J., the lead sponsor. "We all must tighten our belts, including oil companies."
Republicans and some oil-patch Democrats argued that the bill would curb domestic oil and gas development and ultimately hike energy costs for consumers.