Posted on 06/10/2008 8:26:25 PM PDT by radar101
WASHINGTON (Map, News) -
Saved by Senate Republicans, big oil companies dodged an attempt Tuesday to slap them with a windfall profits tax and take away billions of dollars in tax breaks in response to the record gasoline prices that have the nation fuming.
GOP senators shoved aside the Democratic proposal, arguing that punishing Big Oil won't do a thing to lower the $4-a-gallon-price of gasoline that is sending economic waves across the country. High prices at the pump are threatening everything from summer vacations to Meals on Wheels deliveries to the elderly.
The Democratic energy package would have imposed a 25 percent tax on any "unreasonable" profits of the five largest U.S. oil companies, which together made $36 billion during the first three months of the year. It also would have given the government more power to address oil market speculation, opened the way for antitrust actions against countries belonging to the OPEC oil cartel, and made energy price gouging a federal crime.
"Americans are furious about what's going on," declared Sen. Byron Dorgan, D-N.D. He said they want Congress to do something about oil company profits and the "orgy of speculation" on oil markets.
But Republican leaders said the Democrats' plan would do harm rather than good - and they kept the legislation from being brought up for debate and amendments.
On world markets, oil prices retreated a bit Tuesday but remained above $131 a barrel. Gasoline prices edged even higher to a nationwide record average of $4.04 a gallon.
At the Capitol, Democratic leaders needed 60 votes and they got only 51 senators' support, including seven Republicans who bucked their party leaders. Sen. Mary Landrieu of Louisiana, a state tied closely to the oil industry, was the only Democrat opposing the bill. Senate Majority Leader Harry Reid voted in favor of the measure, but for procedural reasons changed his vote to "no" so that he could bring it up again.
"We are hurting as a country. We're hurting individually as Americans ... and the other side says, `Do nothing. Don't even debate the issue,'" complained Sen. Charles Schumer, D-N.Y.
"Average citizens are scratching their heads and saying, what's wrong with Washington," said Schumer.
GOP opponents argued that little was to be gained by imposing new taxes on the five U.S. oil giants: Exxon Mobil Corp., Chevron Corp., Shell Oil Co., BP America Inc. and ConocoPhillips Co.
While these companies may be huge, they don't set world oil prices and raising their taxes would discourage domestic oil production, the Republicans said of the Democrats' plan.
"In the middle of what some are calling the biggest energy shock in a generation ... they proposed as a solution, of all things, a windfall profits tax," Republican leader Mitch McConnell of Kentucky chided the Democrats. He called their proposal "a gimmick" that would not lower gasoline prices and only hold back domestic oil production.
"The American people are clamoring for relief at the pump," agreed Sen. Pete Domenici, R-N.M., but "they will get exactly what they don't want" under the Democrats' plan - higher prices and an increase in oil imports.
The bill's supporters argued that their proposal was different from the windfall profits taxes of the early 1980s that thwarted domestic production and led to a rise in imports. The oil companies could avoid the tax by using their "windfall" to push alternative energy programs or refinery expansions, they said.
Shortly after the oil tax vote, Republicans blocked a second proposal that would extend tax breaks that have either expired or are scheduled to end this year for wind, solar and other alternative energy development, and for the promotion of energy efficiency and conservation. Again Democrats couldn't get the 60 votes to overcome a GOP filibuster.
Neither Republican presidential candidate John McCain nor his Democratic rival, Barack Obama, were in Washington to cast votes on the energy issue on Tuesday.
Obama, in a statement, said Republicans had "turned a blind eye to the plight of America's working families" by refusing to take up the energy legislation. Obama has supported additional taxes on the oil companies. McCain is opposed to such taxes and has proposed across-the-aboard tax reductions for industry as a way to help the economy.
Election-year politics hung over the debate. Democrats know their energy package has no chance of becoming law. Even it were to overcome a Senate GOP filibuster - a longshot at best - and the House acted, President Bush has made clear he would veto it.
But there was nothing to lose by taking on Big Oil when people are paying $60 to $100 to fill up their gas tanks.
The oil companies have been frequent targets of Congress. Twice this year, top executives of the largest U.S. oil producers have been brought before congressional committees to explain their huge profits. And each time the executives urged lawmakers to resist punitive tax measures, blaming high costs on global supply and demand.
In addition to the proposed windfall profits tax, the Democrats' bill also would have rescinded tax breaks that are expected to save the oil companies $17 billion over the next 10 years. The money would have been used to provide tax incentives for producers of wind, solar and other alternative energy sources as well as for energy conservation.
In an attempt to dampen oil market speculation, the legislation would require traders to put up more collateral in the energy futures markets and would provide authority to regulate U.S.-based trading in foreign markets. And it would make oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.
After Tuesday's defeat, Democrats did not rule out pushing the issue again.
"This was politics at its worst," complained Sen. Claire McCaskill, D-Mo. "This was a refusal to debate the biggest problem confronting the American people. ... That takes nerve."
AP Photo/Susan Walsh) Sen. Charles Schumer, D-N.Y., center, flanked by Sen. Jeff Bingaman, D-N.M., left, and Sen. Max Baucus, D-Mont., right, gestures during a news conference on Capitol Hill in Washington, Tuesday, June 10, 2008, on the failed Senate vote on a windfall tax for oil companies. SHORT TITLE---Three stooges
Grouped By Vote Position YEAs -—51
Akaka (D-HI)
Baucus (D-MT)
Bayh (D-IN)
Biden (D-DE)
Bingaman (D-NM)
Boxer (D-CA)
Brown (D-OH)
Cantwell (D-WA)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Coleman (R-MN)
Collins (R-ME)
Conrad (D-ND)
Dodd (D-CT)
Dorgan (D-ND)
Durbin (D-IL)
Feingold (D-WI)
Feinstein (D-CA)
Grassley (R-IA)
Harkin (D-IA)
Inouye (D-HI)
Johnson (D-SD)
Kerry (D-MA)
Klobuchar (D-MN)
Kohl (D-WI)
Lautenberg (D-NJ)
Leahy (D-VT)
Levin (D-MI)
Lieberman (ID-CT)
Lincoln (D-AR)
McCaskill (D-MO)
Menendez (D-NJ)
Mikulski (D-MD)
Murray (D-WA)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Reed (D-RI)
Rockefeller (D-WV)
Salazar (D-CO)
Sanders (I-VT)
Schumer (D-NY)
Smith (R-OR)
Snowe (R-ME)
Stabenow (D-MI)
Tester (D-MT)
Warner (R-VA)
Webb (D-VA)
Whitehouse (D-RI)
Wyden (D-OR)
NAYs -—43
Alexander (R-TN)
Allard (R-CO)
Barrasso (R-WY)
Bennett (R-UT)
Bond (R-MO)
Brownback (R-KS)
Bunning (R-KY)
Burr (R-NC)
Chambliss (R-GA)
Coburn (R-OK)
Cochran (R-MS)
Corker (R-TN)
Cornyn (R-TX)
Craig (R-ID)
Crapo (R-ID)
DeMint (R-SC)
Dole (R-NC)
Domenici (R-NM)
Ensign (R-NV)
Enzi (R-WY)
Gregg (R-NH)
Hagel (R-NE)
Hatch (R-UT)
Hutchison (R-TX)
Inhofe (R-OK)
Isakson (R-GA)
Kyl (R-AZ)
Landrieu (D-LA)
Lugar (R-IN)
Martinez (R-FL)
McConnell (R-KY)
Murkowski (R-AK)
Reid (D-NV)
Roberts (R-KS)
Sessions (R-AL)
Shelby (R-AL)
Specter (R-PA)
Stevens (R-AK)
Sununu (R-NH)
Thune (R-SD)
Vitter (R-LA)
Voinovich (R-OH)
Wicker (R-MS)
Not Voting - 6
Byrd (D-WV)
Clinton (D-NY)
Graham (R-SC)
Kennedy (D-MA)
McCain (R-AZ)
Obama (D-IL)
To the Marxists, all private profits are "unreasonable."
What is going on in the United States today is a classic example of how abusive a military-backed monopoly (the government) can be.
Congress is absolutely, personally liable for increased foreign oil dependence and cost. Their propaganda attacks and show trials on “BIG OIL” obscure profit percentages in line with other industries. Their legislation subsidizes and requires burning in our gas tanks food people should eat. We experience higher prices, while 10,000’s of people starve to death in other countries. Their legislation leads into a black hole of foreign subservience.
So-called windfall profit taxes are government fraud. Economics teaches corporations are tax collectors, and not taxpayers. Corporation budgets include income tax provisions as a cost of doing business. All oil companies would face increased costs from a windfall profits tax, and would easily pass the cost on to consumers. Congress would receive the windfall profit by enormous tax enrichment from consumers, while expending no effort except deception
The only price collusion and obscene profits are found within OPEC. They in turn question why we don’t drill for oil off our shores, in the west, and in the Alaskan wilderness (really a desert)? Why don’t we build refineries, and allow factories for conversion of oil shale and coal deposits to oil products?
Drilling for our own oil and building refineries make us energy independent in the short term. Heavily subsidized so-called alternative energy sources provide miniscule additions to the national power grid. The only real alternative energy source providing prodigious energy increases is nuclear power. Building nuclear power plants provides long-term energy independence
I do not find Chuckles the Clown amusing, I find him nauseating.
Hey Pelosi and Reid, why you don’t you two morons slap a windfall profits tax on OPEC!
Sure. However, Barry has a sparse voting history (he is too busy hoping about change to show up to vote). The upside is, that he does less damage that way.
It amazes me that in 2008 we are still quibbling over basic principles of economics.
Schumer’s deaf...DRILL, DRILL, DRILL
McCain votes much the same as HilBama, so in many ways the election is moot. I just heard that McCain wants to regulate executive compensation. The distinctions are blurring fast...
What the Hell is going on with my senator, Gordon Smith??
This is the 2nd of two BAD votes in as many days, and with the large majority of his fellow Pubbies voting correctly.
Ed
It is well known that one of the most dangerous places to be in DC is between Chuckie and a live media device (Camera, microphone etc.). Better to be between a mother grizzly and her cubs, less painful, you don't have to hear him hit the talking points over & over.
Hey Pelosi and Reid, why you don’t you two morons slap a windfall profits tax on OPEC!
Reid voted no to this. He sided with the Republicans...what is wrong with that?
In terms of showing up for work, McCain is worse than Obama. He has missed 60% of the votes in the current congress.
Yeah...I kind of wonder how the people of NY,AZ,and IL feel about being half-represented in the Senate.
How are you amazed? We've had a culture, media, and education system that for decades has systematically destroyed the ability of society to reason or understand reality. How many high schools teach basic economic theory or any sort of science well? How often does the news media explain complex economic issues rather than just present "human interest" or sob stories? How much of our cultural output is simply nihilistic?
Hillary didn’t vote? I wonder when she plans on returning to her day job.
I believe this is procedural. I am not certain but I think it has to do with the rules on cloture votes.
It's pretty clear, the Democrats are never going to understand who pays taxes. They will just keep nibbling away and take more and more money to handout to people so they vote for them. A path straight to tyranny. People voting themselves a piece of the public treasury has been the downfall of every democratic society in history. It is the nature of man..
If you ignore the WOT and the appointment of Justices for SCOTUS, your point is very true.
Me? I'm holding my nose and voting for McCain.
I hope you do as well.
Looks the same has the vote to open oil exploration in ANWR on May 13, Republicans for, Democrats and 6 RINO’s against.
They ultimately want the federal government take over of the oil industry. If not, tell me another possible motive.
Shale oil? Don’t talk about shale oil while we have 112 billion barrels of domestic oil that are simply made off limits by Congress.
Reid did something right for once.
I think I will go with T. Boone Pickins who says the world economy now and in the future is sufficiently vigorous to render other sources of oil profitable on the world market, though we can achieve energy independence with oil reserves alone.
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