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Wednesday, May 18th, 2011

Oil Industry’s $21 Billion Tax Break Survives U.S. Repeal Effort

Author:     JIM SNYDER
Source:     Bloomberg
Publication Date:     May 17, 2011 9:00 PM PT
Link: Oil Industry’s $21 Billion Tax Break Survives U.S. Repeal Effort
Stephan:   Can there be a better illustration of the power corporations have over the Congress? Think about this for a minute, and imagine to what good use this money could have been put. It will be interesting to see what happens to Democratic senators Mary Landrieu of Louisiana, Ben Nelson of Nebraska and Mark Begich of Alaska, who voted to retain these oil handouts. That will tell us something about the public perception concerning the fairness of wealth distribution in the U.S. The corporations through their Republican agents are banking that, once again, they can use the smoke screen of guns, abortion, and gays to get their real agenda through.

The U.S. oil and gas industry survived an effort to repeal $21 billion in tax breaks over 10 years as three Democrats broke with Senate leaders who said the revenue should go to reduce the federal deficit.

Supporters fell short yesterday of the 60 votes needed to advance the bill after Republicans said the legislation would raise gasoline prices and increase dependence on foreign oil. Fifty-two senators supported proceeding and 48 were opposed, including Democrats Mary Landrieu of Louisiana, Ben Nelson of Nebraska and Mark Begich of Alaska. Maine Senators Olympia Snowe and Susan Collins, both Republicans, joined the Democrats.

Democrats said the oil companies can afford to give up the tax benefits after their combined first-quarter profits exceeded $30 billion. Senate Majority Leader Harry Reid said he would work to revive the measure in budget talks with Republicans, who are trying to cut more than $6 trillion in spending.

‘Instead of defending oil companies, Republicans should be defending the American taxpayer,

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