Democrats seek to slash subsidies for "Big Oil"

Senate leaders want to eliminate billions of dollars worth of tax breaks for energy companies

Published May 10, 2011 5:14PM (EDT)

Senate Majority Leader Harry Reid, D-Nev. pauses during a news conference on Capitol Hill in Washington, Friday, April 8, 2011, after meeting with the Senate Democratic Caucus. From left are: Sen. Joe Manchin, D-W.Va., Sen. Charles Schumer, D-N.Y., Reid, and Senate Majority Whip Richard Durbin of Ill., Sen. Thomas Carper, D-Del., Sen. Robert Menendez, D-N.J., and Sen. Patty Murray, D-Wash. (AP Photo/J. Scott Applewhite)                            (AP)
Senate Majority Leader Harry Reid, D-Nev. pauses during a news conference on Capitol Hill in Washington, Friday, April 8, 2011, after meeting with the Senate Democratic Caucus. From left are: Sen. Joe Manchin, D-W.Va., Sen. Charles Schumer, D-N.Y., Reid, and Senate Majority Whip Richard Durbin of Ill., Sen. Thomas Carper, D-Del., Sen. Robert Menendez, D-N.J., and Sen. Patty Murray, D-Wash. (AP Photo/J. Scott Applewhite) (AP)

Democrats running the Senate are seeking to take away tax breaks that pad the profits of the five biggest oil companies by $2 billion a year and use the money to attack the spiraling deficit.

The new legislation would cut off immensely profitable companies like Shell Oil and Exxon Mobil from subsidies like a deduction originally aimed at boosting manufacturing. The top five oil companies have booked profits of $36 billion in the first quarter of this year alone.

New Jersey Democrat Robert Menendez acknowledged that the legislation -- slated for a vote next week -- won't do anything about gas prices that now exceed $4 a gallon in many places.

Republicans are expected to filibuster the bill. They say the companies would raise prices if the measure became law.


By Andrew Taylor

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