Posted on 04/29/2006 6:26:27 PM PDT by Libloather
High gas prices provide fuel for Democratic volleys at GOP policies
The Business Journal of Phoenix - 10:29 AM MST Friday
by Mike Sunnucks
The Business Journal
Gasoline prices have hit or surpassed the dreaded $3 per gallon mark and oil company profits are through the roof, giving Democrats more ammunition against Republicans on the disconcerting economic issue.
Democrats and U.S. Senate challenger Jim Pederson are pointing to a Senate Republican Policy Committee report earlier this year, which said the oil industry was already heavily taxed and opposed efforts to roll back tax breaks and subsidies for the sector.
That policy group is chaired by Arizona Republican Sen. Jon Kyl, who Pederson is challenging this November. The Kyl-chaired group also opposes increased taxes on oil company profits and defends the sector from criticisms that its profit margins are excessive. The report does not mention antitrust and pricing concerns that have popped up with major mergers in the sector. The RPC helps the GOP caucus in the U.S. Senate formulate policy and set agendas on key issues.
Exxon Mobil, Chevron and ConocoPhillips reported mammoth first quarter profits this week, with the three companies' earnings totaling just under $16 billion.
Democrats and Pederson are hitting Kyl hard on the gas price issue. The Democratic real estate developer supports rolling back tax breaks for energy and oil companies and offering $150 rebates to middle and working class households to help deal with fuel prices that have risen dramatically in recent weeks.
Republicans criticize the rebate plan and energy subsidy and tax break rollbacks proposed by Democrats as political gimmicks that won't help with high prices.
Kyl has countered that increased oil drilling, new and expanded refineries and increasing nuclear and clean-burning coal production is needed to deal with high energy costs. The Kyl campaign also points to the senator's opposition to some energy legislation in recent years that was friendly towards the sector.
Kyl isn't the only Republican getting heat over high gasoline prices.
Gov. Janet Napolitano and a group of other Democratic governors have written President Bush, asking him to roll back $2 billion in oil industry subsidies and tax breaks and push for more investments in new energy sources.
Napolitano and other Democratic governors -- including New Mexico's Bill Richardson and Tennessee's Phil Bredesen -- also criticize Bush in the April 26 letter for not investigating high oil and gas prices during previous spikes.
Critics question the Bush administration's commitment to investigating high gasoline prices and regulating the energy sector. Both Bush and Vice President Dick Cheney worked in the energy sector and the administration has supported tax breaks and subsidies for oil and gas firms.
Former Tempe mayor and Democratic state senator Harry Mitchell is also hoping to make energy and high gasoline prices an issue in his challenge of outspoken conservative Scottsdale Congressman J.D. Hayworth.
Mitchell and the Arizona Democratic Party criticized Hayworth for opposing federal anti-price gouging proposals. Neither the federal government or the state of Arizona have price gouging laws to keep prices under control in emergencies or during severe spikes. Republicans have opposed such ideas in Congress as well as the Arizona Legislature.
Hayworth's office defended the Republican's energy record, citing his support for solar energy and solar fuel cells tax credits and research.
Hayworth chief of staff Joe Eule also said that Mitchell voted for the state's ill-fated alternative fuel tax credits several years ago.
That was the first question asked on this morning's Bulls & Bears on the Fox News Channel. Right out of the box, the obvious answer was, "Yes." RATS block every effort to explore, drill or build refineries.
The prices have started to fall here. The Democrats must be praying that it will still be an issue when Election Day arrives.
Republicans are absolutely neutered on this issue. This issue is so theirs they would PWN3D the Dems.
The RAT answer to the problem - raise the price of gasoline. BRILLIANT!
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