Energy Prices. A motion to limit debate and proceed to the Consumer-First Energy Act of 2008 (S. 3044) was rejected 51-43 (Roll Call 146) on June 10, 2008, in a vote that required three-fifths of the Senate to succeed. The bill would repeal $17 billion in tax breaks for oil companies over 10 years and redirect that revenue to the benefit of renewable energy. A windfall profits tax would also be imposed on the largest oil companies.
We have assigned pluses to the nays because increasing taxes on the profits of U.S. oil producers would drive gasoline, heating oil, and natural gas prices higher, as the increased tax expense would simply be passed on to consumers. Targeting the largest U.S. oil companies for making higher profits creates a disincentive to increasing exploration and production, and undermines the exceedingly large capital base required to rebuild after hurricanes devastate the oil patch. Moreover, it is unfair because other companies and sectors with even higher profit margins are ignored. Finally, the government should not be subsidizing energy development.
