Published May 18, 2011
A majority of U.S. senators last night voted to repeal $21 billion in taxpayer-financed subsidies and tax breaks for the five largest oil companies, which earned more than $30 billion in profits during the first three months of 2011, but the measure still failed.
Also See: Should the U.S. End Federal Subsidies and Tax Breaks for Oil Companies?
Despite the majority "yes" vote of 52 to 48, and even though explains:
To end a filibuster where a senator refuses to stop talking on the floor of the Senate, a bill's supporters must file what is known as a cloture petition, which requires 60 votes to be approved. To end a gentleman's filibuster, where no talking on the floor is going on, the rule is the same: a bill's supporters must file a cloture petition and have 60 votes to get it approved.In both cases, if the cloture petition does not get 60 votes, then the filibuster continues and there is no cut-off of debate. If the cloture petition passes, then debate is limited to 30 hours before a vote is taken.
What the filibuster rules effectively mean is that it takes 60 votes, rather than 51 votes, to pass legislation in the Senate. With the current partisan split and spirit, it has become more difficult for the majority party to bring legislation to the floor.
Only two Republicans-Sens. Susan Collins and Olympia Snowe of Maine-voted with Democrats to end the outdated and unnecessary subsidies and tax breaks for oil companies. And three Democrats--Sens. Mary Landrieu (D-LA), Mark Begich (D-AK), and Ben Nelson (D-NE)-crossed the aisle to join Republicans and protect government handouts for oil companies.
Opponents Claim Ending Oil Subsidies Would Hurt the Economy?
Opponents attacked the legislation as ill-conceived and potentially harmful, saying it would undermine the economy by damaging a vital industry while doing nothing to lower gas prices for consumers.
"Symbolic votes like this that aim to do nothing but pit people against each other will only frustrate the public even more," said Senate Majority Leader Mitch McConnell. "Americans really aren't interested in scapegoats. They just want to pay less to fill up their cars. That's why this Democratic bill to tax American energy is an affront to the American people."
Senator Mary Landrieu, a Democrat whose home state of Louisiana is a big oil producer, made a direct appeal to members of Congress on behalf of the oil industry and its workers.
"It might make us feel better to beat up on Big Oil. It might present a scapegoat in some quarters, but it will not lower prices at the pump and that's what we need to be about," Landrieu said. "This economy, our economic recovery that we're in, slow and spotty in places, but underway, can be stalled out by prices as high as $4.37 a gallon."
Landrieu asked her colleagues why they would want to do harm to an industry that employs millions of Americans.
"Why are we doing it? Why are we harming an industry, five large oil and gas companies that work internationally, that employ 9.2 million people in the United States directly, that are good hard-working Americans, working in and for these companies?" she said.
Do Government Oil Subsidies Really Help Americans?
Well, that's just it. Although ending taxpayer-financed subsidies and tax breaks for big oil companies won't lower gas prices, it won't raise them, either. The five companies in question-BP, Exxon Mobil, Shell, Chevron and ConocoPhillips-can afford to operate and still earn billions of dollars in profits every year, without special subsidies or laying off any of those hard-working Americans while paying their fair share of taxes.
Actually, paying their fair share of taxes would be a novel experience for oil companies. According to a recent report by the Center for American Progress, oil companies pay a lower effective tax rate than most Americans--17.6 percent for Exxon Mobil, for example, compared to 20.4 percent for the average American.
This appeal to protect the jobs of hard-working Americans might be easier to swallow if the same people who fought tooth and nail to preserve billions of dollars of unnecessary subsidies and tax breaks for the oil industry weren't battling just as hard to cut funding for Medicare, Medicaid and hundreds of other domestic programs that benefit those same (and millions of other) hard-working Americans and their families.
Reclaiming the billions of dollars Congress is handing to oil companies that rank among the world's most profitable businesses-companies that don't need the extra money to remain highly profitable-might not lower gas prices, but it would certainly help to soften some of the other blows Americans are facing at the hands of those same lawmakers.