Commentary Magazine


Topic: tax breaks

Another Legislative Defeat for Obama

Another (not totally unexpected) defeat for one of President Obama’s legislative proposals today. This time, the Senate rejected a measure to repeal oil company tax breaks, which the president urged them to pass in a stern speech this morning. The vote wasn’t completely split along party lines, with two Republicans supporting the measure and four Democrats opposing it.

Obama will continue to frame this as the GOP protecting the interests of Big Oil, but the fact that it failed in the Democrat-controlled Senate takes the edge off that slightly:

Obama has sought to deflect blame for high gas prices, in part by casting Republicans as allies of big oil companies. He used a Rose Garden speech to urge lawmakers to back the plan.

“Today, members of Congress have a simple choice to make,” Obama said. “They can stand with big oil companies, or they can stand with the American people.”

Read More

Democrats Mull Tax Hike on Oil Companies

President Obama has been arguing for the repeal of certain oil company tax breaks for years, and it looks like the current hike in gas prices may provide the White House with a convenient opening:

After coordinating with the White House, Senate Democrats expect to consider, likely before the end of the month, legislation that would repeal tax breaks for oil and gas companies, a senior Senate Democratic aide said.

Details of the bill are still being decided, but the revenues could be used for consumer relief or to fund alternative energy initiatives, the aide said.

The aide said there are no easy energy solutions and that Democrats will continue to pursue the “all-of-the-above” strategy advocated by the White House.

Read More