Senate debates windfall profits tax on big oil
Tuesday, June 10, 2008 10:11 AM PDT
WASHINGTON (AP) — With gasoline prices topping $4 a gallon, Senate Democrats want the government to grab some of the billions of dollars in profits being taken in by the major oil companies.
Senators were to vote Tuesday on whether to consider a windfall profits tax against the five largest U.S. oil companies and rescind $17 billion in tax breaks the companies expect to enjoy over the next decade.
‘‘The oil companies need to know that there is a limit on how much profit they can take in this economy,’’ said Sen. Richard Durbin of Illinois, the Senate’s No. 2 Democrat, warning that if energy prices are not reined in ‘‘we’re going to find ourselves in a deep recession.’’
But the Democrats are going to have to overcome staunch Republican opposition to any new taxes on the oil industry. The five largest U.S. oil companies earned $36 billion during the first three months of the year. Majority Leader Harry Reid, D-Nev., will need 60 votes Tuesday to proceed with the oil tax legislation in the face of a threatened GOP filibuster.
The Democrats’ energy package also would:
— Make oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.
— Authorize the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.
