One of the key votes to set up the political narrative for the next ten months takes place in the Senate shortly. That's when the Senate decides whether to move forward to vote to end subsidies to Big OIL. In a surprise vote on Monday, Republicans nearly unanimously agreed to have the debate about Big Oil this week, thinking that they would have the upper hand by insisting that ending these subsidies would just for the poor, beleaguered "energy producers" to raise prices at the pump.
Democrats believe that repealing billions of dollars in subsidies currently benefitting BP, Exxon, Shell, Chevron, and ConocoPhillips is smart politics. President Obama agrees, making these comments in a Rose Garden speech this morning (via e-mail):
Today, Members of Congress have a simple choice to make. They can stand with big oil companies, or they can stand with the American people.
Right now, the biggest oil companies are raking in record profits—profits that go up every time folks like these pull into a gas station. But on top of these record profits, oil companies are also getting billions a year in taxpayer subsidies—a subsidy they’ve enjoyed year after year for the last century.
Think about that. It's like hitting the American people twice. You're already paying a premium at the pump right now. And on top of that, Congress thinks it's a good idea to send billions more of your tax dollars to the oil industry?
It's not like these are companies that can't stand on their own. Last year, the three biggest U.S. oil companies took home more than $80 billion in profit. Exxon pocketed nearly $4.7 million every hour. And when the price of oil goes up, prices at the pump go up, and so do these companies' profits. In fact, one analysis shows that every time gas goes up by a penny, these companies usually pocket another $200 million in quarterly profits. Meanwhile, these companies pay a lower tax rate than most other companies on their investments—partly because we're giving them billions in tax giveaways every year.
Given the truly obscene profits Big Oil is making, the Republicans are going to have a damned hard time ginning up sympathy for them in the American public. Nevertheless, expect them to filibuster this one, and to carry that vote with them until November.
8:18 AM PT: They're voting on cloture now. You can watch on C-SPAN2.
8:32 AM PT: Among the "no" votes so far, Dems Mark Begich (AK), Mary Landrieu (LA), Jim Webb (VA).
Republican Susan Collins is an "aye."
8:34 AM PT: Ben Nelson, "no."
8:45 AM PT: Olympia Snowe: "Aye"
8:58 AM PT: Manchin was an "aye," but no matter. It fails 51-47, because of course majority no longer rules in the Senate.