The Senate has blocked a Democratic proposal to reduce the deficit by eliminating tax breaks for big oil companies. The move was expected to yield $21 billion over ten years.
On Tuesday night a procedural motion needed to move the bill forward failed to get the needed 60 votes.
The New York Times reports:
In the 52-to-48 vote, 3 Democrats joined 45 Republicans in opposing the bill, which was supported by the Obama administration and fiscal watchdog groups that saw the tax help for the oil industry as wasteful. Forty-eight Democrats, two independents and two Republicans backed it.
Energy-state Democrats criticized the initiative, saying it was misdirected and would do nothing to ease gasoline prices and could cost American jobs.
The bill would have ended benefits for Exxon Mobil, Chevron, BP, Shell Oil and ConocoPhillips which together made more than $30 billion in profit in the first quarter of 2011.
A Congressional Research Service analysis of the proposal last week found that eliminating oil company tax breaks would not increase gas prices.
An NBC/Wall Street Journal poll conducted in February found that 74 percent of those surveyed support eliminating tax breaks for oil and gas companies.