Finally, someone is attempting to step in in a meaningful way to put a cap on the ridiculous gouging we've been taking at the hands of Big Oil.
It ain't rocket science to see why oil prices have been allowed to shoot through the roof, past the stratosphere and into outerspace - in fact, it seems pretty clear that this may have been the angle all along - ending the national moratorium and resuming domestic drilling (well, and wildly enriching those with the permanent black goo under their fingernails).
Action to mitigate the cost of fuel could have been initiated long ago, but President Bush and the Republicans in general have adamantly refused to release oil from the strategic reserves, which, it has been argued, would have flooded the market and subsequently reduced demand, which may have translated into lowered or at least stabilized oil prices.
Aside from becoming richer, an ulterior motive almost surely has been the limiting of supply in order to drive up demand, which would then drive prices high enough to piss enough Americans off to override the environmental concerns and resume domestic drilling off the Cali coast - and the holy grail of oil drillers - ANWR. Now if I figured this out with my very limited brainpower (some would say, "nonexistent"), it shouldn't come as much of a surprise to most anyone else.
While folks on both sides of the aisle would be hardpressed to find many successes attributed to the Bush presidency (unless of course you've benefited from his policies and decisions and I've been told that this is an infinitesimally small number), with oil prices continuing to climb and no end to price increases in sight, he very well may have succeeded in breaking the back of opposition to drilling in ANWR, and in the end, this may be his greatest legacy, although for a great many of us, that would be considered our greatest failure...
Senate Democrats want windfall profits tax on oil companies
WASHINGTON - With gasoline prices topping $4 a gallon, 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. 3 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. If he doesn't get 60, he likely will pull the bill from the floor.
Only last week, Reid was forced to withdraw a measure aimed at addressing global warming, falling short of the 60 votes needed to advance that legislation.
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.
_ Require traders to put up more collateral in the energy futures markets to curb speculation.
Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are hurting from the high energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem."
Oil executives, testifying before Congress last month, called the proposed taxes "punitive" and warned that they would discourage domestic oil and gas exploration and production, possibly causing prices to rise instead of fall.
The American Petroleum Institute, which represents the major oil companies, has been reminding lawmakers that in the early 1980s, when the government imposed windfall profits taxes on oil companies domestic oil production dropped and imports increased.
But Democrats reject the comparison.
The Senate proposal would impose a 25 percent tax on profits over what would be determined "reasonable" and would allow oil companies to avoid paying the tax if they invest the money in alternative energy projects or refinery expansion.
The tax breaks that would be rescinded, given by Congress over the past five years, are expected to save the five largest oil companies about $17 billion over the next 10 years. The Democratic proposal would funnel the money into tax incentives for renewable energy sources such as wind and solar, and to promote energy efficiency and conservation.
Most Senate Republicans have a different approach to dealing with the growing energy crisis — pump more oil and gas.
The GOP energy plan, rejected by the Senate last month, calls for opening a coastal strip of the Arctic National Wildlife Refuge in Alaska to oil development and to allow states to opt out of the national moratorium that has been in effect for a quarter century against oil and gas drilling in more than 80 percent of the country's coastal waters.
"Republicans by and large believe that the solution to this problem, in part, is to increase domestic production," said McConnell.
