CQ TODAY MIDDAY UPDATE
June 10, 2008 – 1:22 p.m.
Republicans Block Senate Consideration of Democrats’ Energy Bill
Senate Democratic leaders could not muster enough votes Tuesday to keep alive an energy bill that would impose what supporters call a windfall profits tax on oil companies.
The chamber fell short of the 60-vote threshold needed to invoke cloture and end debate on the motion to proceed to the bill. The tally was 51-43.
The result came as little surprise to either party, but the debate gave both a chance to continue trading blame for the price of gasoline. The showdown appeared driven more by politics than policy, in an election year in which the price of regular gasoline for the first time topped an average of $4 a gallon.
The bill, almost identical to one Democratic leaders introduced last month, was packed with several provisions Democrats know are non-starters for most Republicans, including a tax on profits higher than 10 percent above a past average — the so-called windfall profits tax — and language to roll back $17 billion in tax breaks for oil companies.
But Democrats brought it to the floor anyway, using it as a chance to get back at Republicans for stalling debate on a climate change bill last week.
“Across the country, people are asking, why aren’t you doing something?” said Majority Whip Richard J. Durbin , D-Ill.
During debate on the climate change bill, Republicans pointed to what they called the high cost of the legislation and blamed Democrats for high energy prices because they have blocked efforts to drill for oil and gas in U.S. coastal waters and Alaska’s Arctic National Wildlife Refuge.
The Democrats’ latest move gave them an opportunity to focus much of the blame for high prices on the oil companies and to portray Republicans as sympathizing more with industry than consumers.
But Senate Republican Leader Mitch McConnell , of Kentucky said the Democratic package is “not a serious response to high gas process, it’s a gimmick.”
The White House meanwhile threatened a veto of the bill, saying it would “undercut U.S. energy security and decrease U.S. energy production, thus exacerbating market tightness and increasing energy prices.”




Comments
I am for punishing oil companies and oil speculators who price collude or break the law in some fashion. However, this is, obviously, not the intent of this tax. The tax appears to be intended as punishment for the oil companies' for DARING to make profits or to pacify a concerned citizenry. As such, the tax idea is ill conceived, so the GOP's filibuster makes sense to me. After we tax the profits, how do we PREVENT the gas companies from raising prices to recoup their tax losses. Listen folks: You need to quit looking for scape goats. The way out of this gas mess is to CONSERVE and seek ALTERNATIVES to crude oil. Hello? (Knock, knock). Is ANYONE in there?!
Why is more drilling needed in the one of the last unspoiled wildernesses (at least until Exxon dumped its billions of gallons) when the U.S. EXPORTS oil?
The US government needs to take an ownership interest in big energy ... like 20%. With such an interest, the windfall profits could be used to reduce taxes, and spending of energy revenues could be used to help control inflation.
Didn't I read somewhere that it only costs our oil companies $20 a barrel to get the oil out of the ground? You could start counting there when you figure how much their profits are.
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