Democrats’ Oil Windfall Tax Plan Fails in Senate Vote - With Video
WASHINGTON — Senate Democrats failed to gain enough votes on an energy bill that would have imposed higher taxes on oil companies, which are making record profits as oil and gasoline costs continue surging higher.
Republicans led a charge against the tax, saying it was unnecessary tinkering with the market that would have led to suppressed oil supplies at home, and wouldn’t bring in the money as planned.
The bill, which needed to pass the preliminary vote by a margin of 60 or better, failed 51-43.
The bill also would have rescinded $17 billion in tax breaks the companies expect to enjoy over the next decade.
“The oil companies need to know that there is a limit on how much profit they can take in this economy,” said Sen. Richard Durbin of Illinois, the Senate’s No. 2 Democrat, warning that if energy prices are not reined in “we’re going to find ourselves in a deep recession.”
The five largest U.S. oil companies earned $36 billion during the first three months of the year.
Majority Leader Harry Reid, D-Nev., without the 60 votes he needed, switched his vote to “nay,” so he could bring up the bill later. But the bill is essentially dead for now.
Only last week, Reid was forced to withdraw a measure aimed at addressing global warming, falling short of the 60 votes needed to advance that legislation.
The Democrats’ energy package also would have:
— Maee oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.
— Authorized the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.
— Required traders to put up more collateral in the energy futures markets to curb speculation.
Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are hurting from the high energy costs but strongly opposes the Democrats’ response and has ridiculed those who “think we can tax our way out of this problem.”
Oil executives, testifying before Congress last month, called the proposed taxes “punitive” and warned that they would discourage domestic oil and gas exploration and production, possibly causing prices to rise instead of fall.
The American Petroleum Institute, which represents the major oil companies, has been reminding lawmakers that in the early 1980s, when the government imposed windfall profits taxes on oil companies domestic oil production dropped and imports increased.
But Democrats rejected the comparison.
The Senate proposal would impose a 25 percent tax on profits over what would be determined “reasonable” and would allow oil companies to avoid paying the tax if they invest the money in alternative energy projects or refinery expansion.
The tax breaks that would be rescinded, given by Congress over the past five years, are expected to save the five largest oil companies about $17 billion over the next 10 years. The Democratic proposal would funnel the money into tax incentives for renewable energy sources such as wind and solar, and to promote energy efficiency and conservation.
Most Senate Republicans have a different approach to dealing with the growing energy crisis — pump more oil and gas.
The GOP energy plan, rejected by the Senate last month, calls for opening a coastal strip of the Arctic National Wildlife Refuge in Alaska to oil development and to allow states to opt out of the national moratorium that has been in effect for a quarter century against oil and gas drilling in more than 80 percent of the country’s coastal waters.
“Republicans by and large believe that the solution to this problem, in part, is to increase domestic production,” said McConnell.
(Fox)
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Another reason that it is imperative Christian Conservatives get off their butts and vote this November. Yes, McCain sucks. And yeah, we could do a whole lot worse.
Do you hear me gang? I’m one of you. And if you really want to send the economy into a real tailspin, let us have Obama and a veto proof majority of Dimocrats. I can guarantee you we will have a repeat of the mid 70s.
DON’T BE STUPID!
June 10th, 2008 at 9:10 amI’m with the Republicans on this one. You want higher prices and long lines at the pump? If so, pass that plan.
June 10th, 2008 at 9:10 amI’ll consider to have lead a successful life if before I go I get an opening to smash Durbin’s smug traitorous foul mouth.
June 10th, 2008 at 9:15 amSo the solution to the energy problem is to force the oil industry to invest in the competition. Then what?
June 10th, 2008 at 9:20 amFor every dollar you spend on gas 5 cents are oil company profits. To earn this they explore for oil, drill for oil, ship crude, refine it and distridute the refined products.
For every dollar you spend on gas 15 cents are government tax. To earn that they do sweet fuck all (except send out the bill).
June 10th, 2008 at 9:26 amYeah, and that freaking coward Obama DIDN’T vote, even though he advoated this tax, it’s a keystone of his “energy policy.” He didn’t want it used in an ad against him in the general election. Too cowardly to vote YES or NO. He doesn’t have the courage of his convictions. I can believe he’s a coward, what I can’t believe is how blatant he is. If he believe this is a good idea, why not vote for it? Coward, coward, coward, phoney, phoney.
June 10th, 2008 at 9:27 amI propose a windfall tax on too large government tax receipts.
June 10th, 2008 at 9:28 am“— Maee oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.”
There it is. Nationalization of energy. Chavez style.
June 10th, 2008 at 9:35 amBernie Sanders. the socialist little prick from the peoples republik of vermont, home of the ben & erry’s communal ice cream collective, and the fag marriage capitol of the east.
June 10th, 2008 at 9:48 amWe need a bill in congress that would publish all the names of the contributors to the environmental lobby. They should have a green “E” tattooed to their foreheads and be banned from owning or using any petroleum based products or modes of transportation using same.
June 10th, 2008 at 10:00 amNow that’s a way to go after the real profiteers.
Profits are tied to the Number of Barrels sold, not the amount on a gallon of gas.
June 10th, 2008 at 10:25 am[[Profits are tied to the Number of Barrels sold, not the amount on a gallon of gas.]]
Divide profit by by gallons of gas sold, its 5 cents.
Divide government income from taxing gas by gallons of gas sold, its 15 cents.
June 10th, 2008 at 10:37 amLaura Ingraham proposed a wind-bag profits tax.
I assume this would proportianately affect Durbin, Ried and Pelosi.
I gave a history lesson to my son’s and their friends of what it was like to live under a socialist regime.
June 10th, 2008 at 4:48 pmI explained what a two mile gas line was like and how if you didn’t make it through in time you went without and pedaled to work the next two days until your fill up day came again.
This was Jimmuh Carter USA, not the USSR in the late 70’s.
What exactly do they teach in school about the halcyon days of the 70’s?
When politicians (unfortunately on BOTH sides of the aisle) stop enriching themselves on pork legislation then they will be somewhat more credible when seeking legislation to penalize private industry profits.
Another do as I say, not as I do moment for politicians.
FOX had a great special this weekend on pork scams by some in Congress. Still waiting for the libs/left/dems/redundant to join the fight on this issue but not holding my breath.
June 10th, 2008 at 5:51 pmPlease, everyone on this site, go to www.americansolutions.com and sign Newt Gingrich’s petition to congress - Drill Here, Drill Now, Pay Less. The Dems answer to everything is tax it . This BS has got to stop. Send them a message that we are fed up. We did it with McPains amnesty plan. They heard us loud and clear.
June 11th, 2008 at 5:46 amThe oil companies need to know that there is a limit on how much profit they can take in this economy,” said Sen. Richard Durbin of Illinois, the Senate’s No. 2 Democrat, warning that if energy prices are not reined in “we’re going to find ourselves in a deep recession.”
Hey ‘Dick’, how about applying the same ethos to government taxation, and while you’re at it, how about curbing spening like the rest of us?
June 11th, 2008 at 7:41 amDisplaced Ched Head
The first oil shock was 1973 under Nixon. The Oil Embargo agaisnt countries who supported Israel during the Yom Kippur War was essentially the reason.
Second shock in 1979 was Iranian Rev crap natioalizing the oil.
This is different. On a 2007 dollar basis we are $30 more per barrel than 1979. All of a sudden overnight its a supply problem? I think not.
Socialism had nothing to do with either.
June 11th, 2008 at 9:59 amThe wind fall profit tax is bad economics plain and simple.
June 11th, 2008 at 10:51 amWhy would you vote to take away the subsidies for wind and solar but not touch oil. This is foolish and everyone knows it. If the oil companies have this much power in the USA get use to paying big money at the gas pumps and sending ours sons to fight for their oil. God Bless America boy do we need it.
June 11th, 2008 at 6:20 pmWhy would you vote to take away the subsidies for wind and solar but not touch oil. This is foolish and everyone knows it. If the oil companies have this much power in the USA get use to paying big money at the gas pumps and sending ours sons to fight for their oil. God Bless America boy do we need it.
June 11th, 2008 at 6:20 pm