ND0519116

Title: Senate Blocks Bill to Repeal $2 Billion in Oil Tax Breaks

Description: Bill was a Democratic response to higher gasoline prices, which Republicans characterized as a public relations strategy.

Page Content:

WASHINGTON ? The Senate blocked a bill earlier this week that would have repealed roughly $2 billion a year in tax breaks for the five largest oil companies, the Associated Press reports.

The bill was crafted in response to $4 a gallon gasoline.

"This bill says that even the most rich and powerful among us must do their fair share to help us reduce the deficit," said Senator Robert Menendez (D-NJ), the bill's sponsor. "Their high-priced lobbyists cannot stop us from doing what is fair and what is right."

Republicans and some Democrats opposed the tax increase, saying it would hurt domestic drilling while having little effect on gas prices.

White House spokesperson Jay Carney said the vote was an important step toward repealing ?unwarranted subsidies? and that the administration would continue to pursue the issue.

Had it passed, the bill would have affected Shell, ExxonMobil, ConocoPhillips, BP and Chevron.

"This is not an energy strategy, this is a public relations strategy, this is a 'how do I get re-elected' strategy," said Senator John Cornyn (R-TX). "It does not solve the problem or the pain that Americans are feeling at the pump."

Content Subject: Government Relations

Formatted Article Date: May 19, 2011

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