Senate blocks bill repealing $2B in oil tax breaks

http://news.yahoo.com/s/ap/us_oil_tax_breaks;_ylt=AsRYZ8Tk9pLX48pfjBLfuPWs0NUE;_ylu=X3oDMTNoMzFhczhqBGFzc2V0A2FwLzIwMTEwNTE3L3VzX29pbF90YXhfYnJlYWtzBGNjb2RlA21vc3Rwb3B1bGFyBGNwb3MDMgRwb3MDNQRwdANob21lX2Nva2UEc2VjA3luX3RvcF9zdG9yeQRzbGsDc2VuYXRlYmxvY2tz

By STEPHEN OHLEMACHER, Associated Press – 37 mins ago

WASHINGTON – The Senate blocked a bill Tuesday that would repeal about $2 billion a year in tax breaks for the five biggest oil companies, a Democratic response to $4-a-gallon gasoline that might fare better when Congress and the White House negotiate a deal later this year to increase the government's ability to borrow.
The bill was defeated on a procedural vote. But Democrats hope to build their case to include the measure in a deficit-reduction package being negotiated by key lawmakers and the Obama administration.

----- (skipping)

Republicans and some Democrats opposed the tax increase, saying it would hurt domestic drilling while doing nothing to reduce gas prices. The vote was 52-48 in favor of the measure, short of the 60 votes needed to advance it. Three Democrats — Mary Landrieu of Louisiana, Ben Nelson of Nebraska and Mark Begich of Alaska — joined with nearly all Republicans in opposing the measure. Two Republicans, Olympia Snowe and Susan Collins of Maine, voted for it.

----- (skipping)

The measure would have affected Shell Oil Co., ExxonMobil, ConocoPhillips, BP America and Chevron Corp.

----- (skipping)
[
Some GOP lawmakers argued that the bill would increase gas prices further. However, the nonpartisan Congressional Research Service concluded that eliminating the tax breaks would be unlikely to result in higher gasoline prices, which are influenced by a host of factors. The report said the bill would raise about $1.2 billion [1,200,000,000] in 2012. By comparison, the five oil companies had combined revenues of $1.5 trillion [1,500,000,000,000, more than 1,000 times the tax break] last year.

----- (skipping)

The heads of the five oil companies defended the tax breaks at a Senate hearing last week, saying they just want the same tax advantages enjoyed by other industries. Together, they logged profits totaling $36 billion during the first quarter. The Democrats say that with profits that high, the big oil companies wouldn't miss tax breaks that average $2 billion a year.

----- (skipping)

Obama has called for eliminating tax breaks for all oil and gas companies every year since he took office in 2009, a proposal that would raise an estimated $44 billion over the next decade. Lawmakers, including Democrats from oil-producing states, complained that Obama's proposal would raise taxes on many small and medium-sized businesses involved in oil production.
The Menendez bill would target only the five largest oil companies, raising about $21 billion over the same period. The White House issued a statement supporting the tax bill Tuesday, calling the tax breaks "wasteful subsidies."


..