GOP sides with oil companies, against Democrat plan to roll back Big Oil tax breaks -- and against breaks for alt-fuels

A Democrat-backed bill that "would have rolled back some $17 billion in tax breaks and pressured major oil companies to invest in new energy sources by hitting them with a windfall-profits tax if they did not," says the New York Times, failed to get enough votes in the Senate today to move forward.

"The package also would have instructed the Justice Department to pursue members of OPEC for alleged price fixing and required oil traders to put up more cash on futures exchanges to address speculation, which many observers believe is contributing to the unprecedented run-up in world crude oil prices," the Washington Post reports.

"Republican opponents of the oil-tax measure have argued that higher taxes on the oil companies would backfire, driving up gasoline prices and discouraging new domestic oil production and exploration," the Times reports. "If the bill were approved, the American people 'will get exactly what they don’t want,' said Senator Pete Domenici, Republican of New Mexico, who predicted higher prices and more reliance on imports."

Instead Republicans want to "increase environmentally safe exploration of untapped oil resources in the United States" -- i.e., drill in the Arctic National Wildlife Refuge. Meanwhile, in a separate vote, Senate Republicans blocked consideration of legislation that would extend tax breaks for wind, solar and other alternative energy sources.

       [AP photo]

--Craig PIttman

Comments

[Tino]

I am challenged to find a tax put on businesses that is NOT passed on to consumers.

Perhaps the author can enlighten us with some examples, or perhaps some reasons why the European retail model (with 100%+ taxes) is beneficial for consumers.