Dems Intro Bill to Repeal Oil Industry Tax Breaks

The Hill reports:

Senate Democratic leaders and several politically vulnerable members of their caucus are introducing legislation Tuesday that would repeal several tax breaks for the largest oil companies.

The bill, which faces major hurdles, represents an escalation of Democratic efforts to criticize oil companies amid high gasoline prices and politically tether Republicans to the industry. But Democrats also say the issue is ripe for support across the aisle.

Sen. Robert Menendez (D-N.J.), the lead sponsor, is circulating a letter to colleagues – obtained by The Hill – that seeks to capitalize on recent statements from some top House Republicans that suggest they’re open to rolling back some industry incentives.

“Recently, Speaker Boehner said it is time to look at cutting oil subsidies, and Representative Ryan has endorsed cutting oil subsidies. In addition, CEO’s from the Big 5 have testified that they do not need incentives for oil exploration. For example, ConocoPhillips CEO Jim Mulva testified, ‘with respect to oil and gas exploration and production, we do not need incentives,’” the letter states.

“It is time to work on a bipartisan basis to ask oil companies to pay their fair share and help us lower the deficit,” adds the letter, which also summarizes the bill.

Co-sponsors of the bill, according to a memo Democrats are circulating, include Majority Leader Harry Reid (D-Nev.), Majority Whip Richard Durbin (D-Ill.), and other Democratic leaders. The backers also include several members facing tough reelection battles next year: Sens. Sherrod Brown (D-Ohio), Jon Tester (D-Mont.) and Claire McCaskill (D-Mo.).

Other co-sponsors include liberal Sens. Sheldon Whitehouse (D-R.I.) and Frank Lautenberg (D-N.J.).