Democrats Target Oil Giants' Tax Breaks
Both political parties sought to capitalize on populist anger over surging gasoline prices on Tuesday, as Senate Democrats unveiled a strategy to slash a suite of tax deductions for the nation's five biggest oil companies, while 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 cash to cutting the federal deficit — by barring major oil companies from claiming several 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 determine whether to grant offshore drilling permits. Democrats pitched their plan to cut big oil companies' tax breaks as a common-sense way to trim the federal deficit, which Republicans are eager to accomplish by reducing government spending.
The bill targets 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 should 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 increase energy costs for consumers.