GOP blocks proposal to tax oil companies’ profits

Senate Republicans blocked today a proposal to tax the profits of the five largest U.S. oil companies, with Pete Domenici of New Mexico among the leaders of the GOP effort to stop legislation he said would not provide any help for consumers.

“The American people are clamoring for relief at the pump,” Domenici said during today’s debate, according to the Associated Press, but if taxes are increased on the oil companies “they will get exactly what they don’t want. The bill will raise taxes, increase imports.”

Today’s debate was the latest in the battle over energy policy made complicated by election-year politics and the American public’s frustration with rising gas prices. Domenici, as the ranking member of the Senate Energy and Natural Resources Committee, and Democrat Jeff Bingaman of New Mexico, the committee’s chairman, are key players in the debate. Last month, the Senate rejected a Domenici-led proposal to dramatically increase domestic oil production.

The Democratic proposal Republicans blocked today would have put in place a 25 percent tax on what the legislation called “unreasonable” profits of the five largest U.S. oil companies. Profits would have been deemed reasonable or unreasonable under the proposed legislation when compared to profits from several years ago, the Associated Press reported.

The bill also would have given the federal government more power to deal with oil-market speculation. The latter is something Bingaman has sought, saying speculation has contributed to the surging price of crude oil.

The vote to bring the bill up for consideration was 51-43, but Democrats needed 60 votes to overcome the GOP filibuster. Democrats also failed today in their attempt to extend tax breaks for the development of alternative energy. Some have expired and others are scheduled to end this year.

You can listen to Bingaman discussing today’s votes by clicking here.