“Mitt Romney’s fantasy that Senate Democrats will work with him to pass his ‘severely conservative’ agenda is laughable. In fact, Mitt Romney’s Tea Party agenda has already been rejected in the Senate. In the past few months, we have voted down many of the major policies that Mitt Romney has run on, from the Ryan plan to end Medicare as we know it, to the Blunt Amendment to deny women access to contraception, to more tax giveaways for millionaires and billionaires, to a draconian spending plan that would gut critical services for seniors and the most vulnerable Americans.

“Mitt Romney has demonstrated that he lacks the courage to stand up to the Tea Party, kowtowing to their demands time and again. There is nothing in Mitt Romney’s record to suggest he would act any differently as president. As governor of Massachusetts, he had a terrible relationship with Democrats, cordoning himself off behind a velvet rope instead of reaching out to build relationships. And in the near-decade that Mitt Romney has spent running for president, both his words and his actions have shown that pleasing the far right is more important to him than working across the aisle.

“Senate Democrats are committed to defending the middle class, and we will do everything in our power to defend them against Mitt Romney’s Tea Party agenda.”

“Today’s report proves that nothing Mitt Romney says about taxes can be taken at face value.  Instead of owning up to his use of secret offshore tax havens in places like Bermuda and Switzerland to enrich himself, Mitt Romney parsed words to try and convince the American people that he did not benefit from these havens – when in fact, he appears to have made millions from them over the course of his career.

“This is the same pattern we have seen from Mitt Romney when it comes to his tax plan: instead of respecting the American people’s intelligence by offering facts and straight answers, he and Paul Ryan have offered nothing but evasion, dissembling and half-answers.

“Congressman Ryan even went so far as to claim that he couldn’t provide details about their tax plan because he didn’t have the time. With the fiscal cliff fast approaching, Mitt Romney and Paul Ryan had better find the time to provide some real answers to the American people about how they would approach tax reform.

“Mitt Romney could clear up these issues tomorrow if he would simply release his tax returns and release the details of his tax plan. Instead, he’s asking the American people to just trust him. Mitt Romney does not seem to understand that trust is earned – and not by playing shell games with the American people.”

###

“I agree with President Obama that we should extend tax cuts for all American families up to the first $250,000 of income immediately. This will protect middle-class families and allow us to reduce our deficit in a responsible manner. Democrats and Republicans should be able to agree that protecting the middle class is the most important priority, so Republicans should stop holding these middle-class tax cuts hostage to extract more reckless giveaways for millionaires and billionaires.

“I will be discussing the next steps in the Senate with my caucus in the coming days. Republicans have claimed they want to reduce our deficit; in the weeks ahead, they will have a chance to do so by joining Democrats to vote to extend tax cuts for all middle class American families on the first $250,000 of their income.”

I was saddened to hear of a terrible accident on Friday at the Reno air show, which killed 10 people and injured many more.

My heart goes out to those who were hurt. And my thoughts are with the families of those who lost their lives, including the pilot of the World War II-era plane that crashed into spectators.

I commend the many first responders who rushed to the scene Friday. Their quick thinking and skillful assistance saved many lives.

While this crash was devastating, I am glad the pilot took quick action to prevent additional loss of life by avoiding a grandstand packed with thousands of spectators.

My four grandchildren attended the show on Thursday. And my oldest grandson, Mitchell was at the even with his scout troop earlier on Friday.

Although officials are still investigating the crash, initial reports indicate that a piece of the plane’s tail broke off prior to the accident.

I hope this terrible event – the first of its kind in this nation – will not deter people from attending air shows in the future.

Thousands of people enjoy these shows every year. The late Senator Ted Stevens attended the Reno show many times and told me it was the best of its kind.

I will continue to monitor the investigation.

This weekend Senator Charles Percy of Illinois, the progressive Republican and father-in-law to our own Senator Rockefeller, died at the age of 91.

Although I did not serve with Senator Percy, I knew him by reputation. He was an independent thinker and a moderate who always put country before political party. The Senate could use more of his brand of pragmatism today.

Senator Percy was a proponent of tougher environmental regulations and consumer protections, an outspoken opponent of the Vietnam War and a proponent of nuclear nonproliferation. He was also a Navy veteran and a businessman, and was often mentioned as a presidential contender.

The Senate honors him for his faithful service to his country as a sailor and in Congress. My thoughts are with his family, including Senator Rockefeller and his wife Sharon, today.

Last week, the President presented the country with a roadmap to reduce our jobs deficit – a proposal to create nearly 2 million jobs and reduce unemployment by a percentage point.

Today President Obama laid out a common-sense pathway to substantially reduce our budget deficit as well.

It is a concrete strategy to cut the deficit by more than $4 trillion over the next decade and do it fairly. I congratulate him for his vision.

His plan calls for shared sacrifice from all Americans, including those who can best afford to help. It calls on those who benefited from the tax policies that sunk this country deeper and deeper into debt to help get us out of debt.

Americans know shared sacrifice is the best path to fiscal sustainability. Many of the richest few agree, including Warren Buffet.

That is why the President has proposed the so-called Buffet Rule – that no American making more than $1 million a year should pay a lower tax rate than this nation’s middle-class families.

This rule would apply to the top three-tenths of one percent of Americans – the richest of the rich, like Mr. Buffet.

Warren Buffet believes it is unfair that he pays a lower income tax rate than his secretary. This is what he said: “If you’re in the luckiest 1 percent of humanity, you owe it to the rest of humanity to think about the other 99 percent.”

There are about 22,000 people in this country who make more than $1 million each year, yet pay less than 15 percent of their income in taxes.

The top 400 earners in this country – all of whom make more than $110 million a year – pay a smaller percentage of their income in taxes than plumbers and teachers and factory workers do.

More than anyone else, these millionaires and billionaires benefited from Bush tax cuts that contributed $3 trillion to our deficit. They helped plunge this nation into a financial hole.

Yet Congressional Republicans believe middle-class families and seniors – not the millionaires and billionaires who have enjoyed trillions in tax breaks – should bear the burden of getting us out of that hole.

A balanced approach to reducing our deficit means those who have benefited the most from policies that created our deficit crisis should also help solve our deficit crisis.

A balanced approach means everyone pays his or her fair share. It means the middle-class, seniors and those who can least afford it will not bear the heaviest burden.

I commend the President for insisting on basic fairness as we address our deficit problem.

Last week was a productive one here in the Senate.

We reached a bipartisan agreement to pass emergency aid for communities affected by devastating floods, tornadoes and wildfires.

We also reauthorized the Federal Aviation Administration, keeping 80,000 safety inspectors and construction workers on the job.

And we passed a highway bill that will keep 1.8 million people at work building roads and bridges. Congress has no duty more pressing than to putting Americans back to work, and this highway legislation will do that.

But we can and must do more to ease the unemployment crisis in this country.

That’s why this week the Senate will take up Trade Adjustment Assistance legislation. The TAA program helps U.S. workers who lose their jobs because of international trade to learn new skills so they can reenter a changing workforce. And it helps them pay for health insurance while they’re training for new jobs.

A global economy means fierce global competition. And unless our workforce is flexible and well-trained, we cannot hope to compete.

Between 2001 and 2008, America lost 2.4 million jobs because of trade with China. The TAA program is retraining many of those people, getting them back into the workforce and boosting our economy at the same time.

It’s unfortunate that my Republican colleagues, who say they care so much about free trade agreements, have prevented three such agreements from moving forward because of objections to this TAA legislation.

As we struggle to rebound from the worst recession in generations, it is unthinkable that we would abandon hardworking Americans who lost their jobs through no fault of their own. TAA provides the lifeline they need to get back on their feet.

Snowe: Subsidies Are “Unnecessary” And “Reckless”

Thune: “If In Fact They Are Making Such Enormous Profit, Perhaps They Don’t Need The Support Of The Tax Incentives That Are Given To Them By The American Taxpayer”

Collins: We Should Not “Continue to Subsidize The Oil And Gas Industry”

Senator Collins Said We Should Not “Continue to Subsidize the Oil & Gas Industry” While Taxpayers Struggle to Pay Bills. “With net profits of a single oil company reaching almost 10 billion dollars in a single quarter, we should not expect taxpayers struggling to pay their bills to continue to subsidize the oil and gas industry. Congress should repeal unnecessary tax breaks for big oil companies and use the billions of dollars instead to fund the remaining proposals in my 10-Point Energy Plan.” [Collins Press Release, 4/22/08]

Senator Mark Kirk Supported Nixing Big Oil Subsidies; They’re “Doing Just Fine on Their Own.” On C-Span’s Washington Journal, Sen. Mark Kirk (R-IL) broke with his party and called for cutting Big Oil’s subsidies, explaining that oil companies are “doing just fine on their own”: Q: Why can’t we start collecting royalties, finally, from the oil companies? Or do something about the subsidies that these very wealthy corporations have? Why can’t we get rid of these tax havens? Why can’t we talk about those things? Why can’t we put those on the table as well? KIRK: I think we should. In the House of Representatives, I voted to wipe out many of the oil company subsidies. They’re doing just fine on their own. I think that many of the corporate welfare programs are misplaced. [Think Progress, 3/1/11]

Senator Olympia Snowe: At a Time of Record Oil Profits and High Consumer Prices, Tax Breaks for Big Oil Are “Not Only Unnecessary, They Are Reckless.” Snowe said in a release, “In a time of record profits for oil companies and skyrocketing energy costs for consumers, tax breaks for the oil industry are not only unnecessary, they are reckless.  It would be far wiser to redirect the tax expenditures from these provision to incentives, such as the development of alternative and renewable energy sources from products that are developed, grown and manufactured domestically, so that the current energy crisis can be the last one.”  [Snowe Press Release, 4/26/06]

Thune: If Oil Companies Are Making Record Profits Then They Don’t Need Tax Incentives. Thune said in a floor speech,  “If in fact they are making such enormous profits then perhaps they don’t need the support and the tax incentives that are given to them by the American tax payer.” [Thune Floor Speech, 4/25/06]

·         Thune Authored Bill To Suspend Oil Subsidies, Called Them Unnecessary. In a 2006 press release Thune said, “Senator John Thune today introduced legislation that would provide immediate relief at the gas pump to American consumers. The Gas Price Reduction Act of 2006 would suspend the 18.4 cents per gallon federal gas tax through the end of September. The lost revenues would be reimbursed by a temporary suspension of a number of tax credits and royalty waivers currently enjoyed by the oil companies…Due to record oil profits, it is apparent many of these incentives are unnecessary. Many of these tax breaks were created years ago when the price per barrel was low and the federal government was trying to create incentives for further exploration. With the price of crude oil now at $73 per barrel, oil companies do not need taxpayer subsidized incentives to produce oil.” [Thune Release, 4/27/06]

Senator Dan Coats: “I Said Everything is on Table and That Includes Ethanol, That Includes Oil Subsidies.” “Coats said he would also be willing to discuss phasing out subsidies for oil production and ethanol – tax breaks he’s fought to maintain in the past. ‘I said everything is on the table. And that includes ethanol, that includes oil subsidies.’” [ABC News, 4/13/11]

Senator Lamar Alexander: Federal Subsidies for Coal, Oil, and Gas “May be too Expensive.” At a Department of Energy, Energy Innovation Summit, Tennessee Senator Lamar Alexander said, “Sometimes we get so entranced with an idea that we initiate a federal subsidy for it, and it never goes away.  We’ve done that with renewable energy, ethanol, mature sources such as coal, oil and gas. That may be too expensive.” According to Platts, “Later, on the sidelines of the conference, Alexander, the third ranking Republican in the Senate, said he may support some of President Barack Obama’s proposal to eliminate $26 billion in oil and gas tax breaks.” [Platts.com, 3/2/11]

Lindsey Graham Has Supported Ending Tax Breaks for Big Oil in Past: “It is Irrational to be Allocating Around $1 Billion Per Year in Tax Dollars When Oil Companies Are Recording Record Profits.” “It is irrational to be allocating around $1 billion per year in tax dollars to assist in production at a time when oil is $124 per barrel and companies are recording record profits. The proposal also seeks royalty payments due on existing leases where royalties were not previously charged. The inability to collect royalties was a result of poor drafting of the leases during the Clinton Administration and could result in billions in payments being collected over the next 10 years. These revenues will be invested in alternative fuel technology.” [Graham Press Release, 8/1/08]

“Republicans would rather cut college scholarships, slash cancer research and end Medicare than take away taxpayer-funded giveaways to oil companies that are raking in billions in profits. That tells you everything you need to know about their priorities.

“We could have cut our deficit by $20 billion today, but Republicans defended oil companies instead. This is exactly the kind of wasteful spending we should be cutting. Democrats are not going to stop trying to end these wasteful taxpayer giveaways. I hope next time my Republican colleagues will put America’s seniors, students and middle-class families ahead of oil companies.”

Asbury Park, NJ Editorial: Oil Company Claims “Absolutely Embarrassing,” “Take The Breaks Away From the Big Oil Companies.”

Albert Lea, MN Editorial: “Use The Money Where It Is Really Needed”

Salt Lake Tribune Editorial (UT): Republicans “Downright Dishonest” To Talk Debt and Defend Big Oil Subsidies. “U.S. Tax Code benefits that oil companies seek out with at least as much vigor as any new pocket of petroleum mean higher profits for the firms, and lower revenues for the United States Treasury, amounting to some $4.4 billion a year. President Obama and the Democrats in the Senate want to end those tax breaks. Hatch does not. On this matter, the Democrats are right, and Hatch is not only wrong, he is being downright dishonest if he keeps defending the tax breaks even as he decries the size of the national debt.” LINK

Great Falls Tribune (MT): Baucus Calls For End To Big Oil Tax Breaks Big Oil. “Max Baucus told the heads of America’s biggest oil companies Thursday that they should stop getting billions of dollars in tax breaks because the country’s better off using the money to reduce the national debt than padding the profits of Fortune 500 companies. ‘We can put this money to better use, I believe, and we should,’ the Montana Democrat and chairman of the Senate Finance Committee told the assembled executives at a Capitol Hill hearing. ‘We should use this money to reduce our deficit instead of putting the burden on seniors and our children’s future. … We have to make choices. None of them are easy.’” LINK

Somerset County Daily-American Editorial (PA): Big Oil Tax Breaks Are Un-American. “Gasoline has been hovering around $4 a gallon, but big oil companies think the taxpayers should continue to subsidize the industry. It would be one thing if they were using the subsidies to expand production and lower prices at the pump. But they are not. The oil company executives testified before Congress that they don’t need incentives for oil and gas exploration and production. They spend most of their profits to purchase their own stock and boost their dividends. Congress should rescind the tax breaks that account for the $20 billion for the oil industry.” LINK

Albert Lea Tribune Editorial (MN): Time For A Change On Oil Subsidies. “the reality is that handing out fewer tax breaks to oil companies would mean either fewer tax dollars coming from everyone else or a bite out of the deficit. So the question facing Congress and the American people is whether they are better off giving their dollars to wealthy oil companies or conserving them for larger needs. For most, the choice is obvious: Use the money where it is really needed, not where it just adds to an already giant profit.” LINK

Asbury Park Press Editorial (NJ): No More Tax Breaks For Oil Companies. “There is no way the oil company executives can claim they are just regular Joes, trying to get ahead in a hard world. That claim is more accurately made by the people who are hoping they have enough gas in their cars to get to and from work until the next payday. It’s absolutely embarrassing. Take the breaks away from the big oil companies. Use the money to fuel other programs.” LINK

Lompoc Record Editorial (CA): The Dark Humor Of Oil Prices. “It was, at times, laughable to listen to the oil CEOs, one of whom whined that Congress ought not to ‘punish our industry for doing its job well.’ Talk about non sequiturs. What the well-dressed oil boss meant was that U.S. consumers paying record-high prices at the pump should continue to pony up about $4 billion in a year in what amounts to a taxpayer subsidy of an industry that does what it pleases, when it pleases and to whom it pleases. If the oil industry is in search of sympathy, they won’t get it from American motorists stressed by pump prices that may soon jump above $5 a gallon.”  LINK

ABC 2 News, Baltimore (MD): Cardin Speaks Up Against Breaks For Oil Companies. “Higher gas prices mean cutting back for most of us. But it turns out, big oil companies are still banking big money with some tax breaks. Now U.S. Senator, Ben Cardin wants to even the score. On Monday, Cardin held a press conference calling for the passage of legislation that would end $4 billion a year in subsidies and tax breaks for the five biggest oil companies.” LINK

NBC 10 News, Providence (RI): Congressional Delegation Wants End To Oil Subsidies. “As gasoline prices float at about $4 a gallon, Sens. Sheldon Whitehouse and Jack Reed and Rep. David Cicilline stood in front of the ExxonMobil terminal in the Port of Providence to demand action. ‘While Rhode Islanders are paying over $4 a gallon for gas, we are giving the oil industry $4 billion in tax subsidies a year. It’s extraordinary,’ Reed said. Whitehouse echoed those words. ‘At the same time Rhode Islanders are getting clobbered at the pump by big oil, big oil is making the biggest profits it’s practically ever made. Just in the first three months of this year, the Big 5 made $33 billion dollars in profits,’ Whitehouse said.” LINK

ABC News (MI): Senator Debbie Stabenow Discusses Gas Prices. “Fresh from questioning oil company executives at a hearing Thursday, U.S. Senator Debbie Stabenow stopped in Mid-Michigan Friday to talk gas prices. The Senator was discussing efforts to combat rising gas prices and ways to help those oil companies become part of the solution. ‘I think it’s fair as we’re asking everybody to sacrifice, to be part of what we need to do to pay down the national debt, that we be saying to the oil companies, We are asking you to support taking 1 percent of your profits and putting it towards America being secure,’ Stabenow said.” LINK

Saginaw News (MI): Senator Debbie Stabenow: Oil Companies Should Share Their Profits To Pay Down The National Debt. “U.S. Sen. Debbie Stabenow, D-Lansing, has an idea to reduce the national debt: Make oil companies share their profits.  … ‘We are asking (oil companies) to take 1 percent of their profits and put it towards paying down our national debt,’ she said. Stabenow also advocated eliminating federal oil company subsidies.” LINK

Associated Press (MD): Md. Senator To Push For Ending Tax Breaks For Oil Companies. “Maryland Sen. Benjamin Cardin is pushing for an end of $4 billion a year in subsidies and tax breaks for the five biggest oil companies.” LINK

KOMO News (WA): Cantwell Pushes Plan To Slash Gas Prices ‘Overnight’. “With no relief in sight at the gas pump, one of our state’s senators is going on the attack. U.S. Sen. Maria Cantwell says oil speculators are to blame for budget-busting prices – and she says it’s time to rein them in. As drivers wonder just how high gas prices can go, Cantwell and other lawmakers have been grilling oil company execs.” LINK

WPRI News (RI): RI Leaders Crack Down On Oil Companies. “With gas prices continuing to loom around $4 per gallon – national leaders are now considering tapping into the country’s strategic petroleum reserves and investigating Wall Street speculators. Sen. Sheldon Whitehouse said, ‘Undoubtedly, Rhode Islanders are being clobbered at the pump and something needs to be done.’” LINK

Lakeland, Florida Editorial: “Speaker Boehner Had It Right The First Time When He Said Big Oil Companies Don’t Need Those Tax Breaks”

Wall Street Journal Editorial: “Maybe Mr. Mulva Should Work On Being A Better American”

Philadelphia Daily News: We Should Cut The Deficit By Ending Giveaways To Oil Companies, Not by Ending Medicare. “These companies are swimming in profits. The big five who were questioned in Washington yesterday booked $36 billion in profits just for the past quarter. Yet, ExxonMobil CEO Rex Tillerson whined that taking away subsidies would mean fewer explorations and less production, leading to higher prices at the pump. This was curious. First they tell us they can’t control an international market that sets oil prices. So why would losing a tax break that adds about 2 percent to their annual profits have an instant impact on pump prices?” LINK

Jackson Clarion Ledger: Oil Profits: Tax Breaks Raise Ire. “Meanwhile, in 2006, Exxon Mobil Corp. posted record profits for any U.S. company in history – $10.71 billion for the fourth quarter and $36.13 billion for the year. In 2008, it broke its own record with $11.68 billion in the second quarter. Then, did it again with $14.83 billion in the third quarter. The other oil companies profited immensely, as well. What goes up … stays up? And U.S. taxpayers are adding to the companies’ profits? While tea party Republicans attack middle-class tax breaks and the social safety net for the elderly, the sick and the poor? And want more tax breaks for the rich? That’s fiscal responsibility?” LINK

Las Vegas Sun: Who Needs Subsidies? “Republicans are taking the oil companies’ view. They say the bill wouldn’t lower the prices at the pump, but if that’s true, what’s the point of giving the subsidies? The Republicans also complain that the Democrats are trying to raise taxes, but Democrats just want them to pay their fair share. … The fact is the oil industry can and should pay more. Congress should pass the bill. It’s disgusting that Republicans are letting the oil companies gorge themselves while average Americans get stuck with the bill.” LINK

Louisville Courier Journal Editorial: Big Oil’s Breaks. “Late last month, ExxonMobil announced it had made almost $11 billion in the first few months of 2011, an improvement of about 70 percent over the same time last year. Ditto Shell: more than $6 billion net income in the first quarter, 22 percent higher than in the same quarter last year. So why, some may ask, haven’t the tax breaks given to big oil companies — some of those sweeteners in place since the 1920s — become part of the scything operation as congressional deficit hawks go after Planned Parenthood, Medicare and whole executive departments in their zeal to cut spending?” LINK

Miami Herald: On Tax Fairness And Loopholes. “In a scene reminiscent of the congressional hearing where tobacco company executives innocently denied that nicotine is addictive, oil company executives solemnly told Congress last week that their exorbitant profits are no big deal. One even suggested that closing big oil’s tax loopholes is somehow ‘un-American.’ Tell that to Americans struggling to make ends meet as they cope with $4-a-gallon gasoline and the economy gets hit with a sudden inflationary spike because of rising fuel prices. Meanwhile, oil companies report record earnings. To top it off BP acknowledges that taxpayers, in effect, are being asked to pick up part of the cost for BP’s oil spill in the Gulf of Mexico.” LINK

Wall Street Journal: Big ‘Un-American’ Oil. “The five oil companies bagged more than $35 billion in profits in the first quarter, noted Democratic Sen. Max Baucus of Montana, the committee chairman. That puts them on track for record profits of more than $100 billion this year. Eliminating some tax deductions, by contrast, aims to raise about $2 billion a year. And this has got Mr. Mulva hurling the ‘un-American’ bomb? Maybe Mr. Mulva should work on being a better American.” LINK

San Jose Mercury News: Oil Industry Reaping Benefits On Massive Campaign Contributions. “In the first quarter of 2011, the five largest multinational oil companies made nearly $36 billion in profits; they need taxpayer support like Warren Buffett needs welfare. Subsidies of this magnitude should be reserved for industries that serve a compelling national interest but are not yet profitable. And yet Senate Republicans who say debt and deficits are their top priority want to continue funneling taxpayer dollars to companies piling up massive profits, even as Congress cuts funding for food stamps and schools.” LINK

Lakeland Ledger: Big Oil Companies: Tax Breaks Not Needed. “On April 28, Exxon, Mobil and Shell reported ‘huge increases in their first-quarter profit … helped by higher oil prices and earnings from refining,’ reported The New York Times. In other words, while Americans are paying more at the pump to feed big oil’s profit margins, they continue to hand some of the most profitable companies in the world something like $4 billion a year in tax subsidies. Speaker Boehner had it right the first time when he said big oil companies don’t need those tax breaks. Obama has challenged Congress to side with the taxpayers against the oil lobby. The only question is, whose side is Congress on?” LINK

Longview Daily News: Big Oil Can Survive Without Federal Assistance. “There’s no doubt that earnings and profits are high. The six largest American oil companies returned profits of an aggregate $80 billion in 2010 and are well ahead of that schedule for 2011, with Exxon’s first-quarter profits exceeding $10.6 billion. At the same time, this immensely profitable industry remains entrenched at the front of the government welfare line, collecting an estimated $5 billion per year in outright government subsidies and tax abatements and perhaps another $3 or $4 billion in other special favors and considerations on the federal and state levels.” LINK

Santa Fe New Mexican: Ending Oil Subsidies Makes Fiscal Sense. “Republicans striking fiscally responsible poses are focusing on that ogre known as the federal debt. Forget that their party, and their party’s president, spun us from surplus to deficit in the course of eight years; they must cut spending — and keep financial burdens on the middle and lower classes. Well, looked at properly, the oil-business subsidies amount to spending — so here’s your chance, elephants, to take a nice bite out of it .” LINK

Cape Cod Times: End Oil Subsidies. “The sticker shock we are feeling at the gasoline pumps is a serious drag on efforts to restart the sputtering economy. With U.S. gas prices averaging more than $4 per gallon — and considerably more in many places on the Cape and Islands — filling the tank is tipping $50 or more. … At a time when the most basic human service programs are being slashed and Americans are pinching every penny, it is extremely difficult to see the logic in continuing the subsidies for an industry that is demonstrating it clearly doesn’t need the support.” LINK

Joplin Globe: Another Place To Cut Spending. “When we pay our monthly bills at home, we follow a budget and spend only what we bring in. So when our budgets get lean and we have to cut back, we look at unnecessary spending. Maybe that means we buy hamburger instead of steak. We get generic items instead of name-brand items. The federal government has a chance to cut $2 billion annually for the next decade by rescinding government subsidies to the five largest oil companies in the world, according to a bill sponsored by Sen. Claire McCaskill, D-Mo. BP, Chevron, ConocoPhillips, Exxon and Shell reported profits of $32 billion in the first quarter alone. So we support McCaskill’s idea to get those subsidies back.” LINK

San Francisco Chronicle: Big Oil’s Money Gusher. “ExxonMobil’s first-quarter earnings of $10.7 billion are up 69 percent from last year. Other oil companies are also scoring record gains. The five biggest oil companies together report more than $35 billion in profits. This gusher is an embarrassment for an industry seeking to keep its $4 billion annual tax subsidy from the U.S. government. It’s especially embarrassing at a time when Americans are paying $4 a gallon or more at the pump.” LINK

Houston Chronicle: Let’s Cut Off The Subsidies To Profitable Oil Companies. “These subsidies cannot be defended. With the evidence against them piling up and oil companies reporting huge profits, the tide finally may be turning against the subsidies. Let’s hope that as momentum builds to end giveaways to big oil, it will be the beginning of an energy policy that relies less on an industry that rakes in huge profits while it takes from Americans on their tax returns and at the pump.” LINK

“I thank Chairman Baucus for holding this important hearing, and hope my Republican colleagues will come to their senses and work with us to end these wasteful giveaways of taxpayer dollars.”

Washington, D.C.–Nevada Senator Harry Reid made the following remarks today on the Senate floor regarding tax giveaways for oil companies:

“As I speak, the heads of the five largest oil and gas companies in the world are testifying across the street.  With the country watching, these extremely wealthy CEOs of extremely profitable corporations are trying to explain to the Senate – and most importantly, to the American people – why they need taxpayer handouts.

“I don’t envy them.  It’s an impossible position to defend.

“Think about this: In just the first three months of this year, the oil industry made $36 billion in profits alone.  Not revenues – profits.  That’s $12 billion a month.  That’s $3 billion a week.  That’s pretty good money.

Detroit Free Press: Stabenow Takes Aim At Oil Subsidies. “On the eve of a congressional hearing, Michigan Sen. Debbie Stabenow and four other Democratic members of the Senate Finance Committee today asked oil company executives to acknowledge they no longer need subsidies that reduce the amount of federal taxes their companies pay. The oil company executives are expected to take part in a Finance Committee hearing on tax incentives and fuel costs on Thursday. The senators who signed a letter to the chief executives of BP America, Chevron, ConocoPhillips, Exxon Mobil and Shell said with oil prices high, they can make billions of dollars a week in profits while still getting billions of dollars a year in subsidies. ‘We have families that are paying as much for gasoline at the pump as they are paying for their groceries to put food on the table,’ Stabenow said.” LINK

Mid Hudson News: Schumer Backs Repeal Of Tax Breaks For Big Oil. “US Senator Charles Schumer announced his support for a proposal to repeal $4 billion in annual tax breaks to the largest oil companies. Schumer’s announcement comes with Hudson Valley gas prices well over $4 per gallon, but now beginning to pull back, slightly, in some places. ‘Decades ago when oil was $17 a barrel, it made sense to give companies an incentive to explore and produce; that’s when these things were passed,’ he said Wednesday. ‘But, with oil hovering around $100 a barrel and Big Oil reaping record it defies logic to spend billions of dollars every year to tax giveaways to Big Oil.’” LINK

The Mitchell Daily Republic: Tim Johnson Calls For End To Oil Subsidies; Thune Disagrees. “Sen. Tim Johnson, D-S.D., called for an end to taxpayer subsidies for oil and natural gas companies Wednesday, saying instead the United States should invest in further ethanol production and improving the infrastructure to deliver ethanol to market. ‘High-priced oil threatens both our energy and economic security. We have a homegrown solution — ethanol,’ Johnson told reporters. ‘It’s time to end the $4 billion a year of taxpayer giveaway to big oil. Oil companies don’t need any help.’” LINK

Coventry Patch: Whitehouse Calls for End to Tax Breaks for Big Oil. “With Rhode Island drivers continuing to feel the pain of rising costs at the pump, U.S. Senator Sheldon Whitehouse (D-RI) today cosponsored legislation introduced in the Senate to end expensive tax breaks for big oil companies.  The Close Big Oil Tax Loopholes Act would end these handouts to the five largest oil companies and use the billions in savings to help reduce our federal deficit. ‘These companies are doing just fine on their own, making over $33 billion in profit last quarter, and shouldn’t be double dipping into Rhode Islanders’ wallets by charging record prices and taking our tax dollars,’ said Whitehouse.  ‘We should put an end to these tax breaks to Big Oil.’” LINK

The Clark Fork Chronicle: Tester Plan Ends $4 Billion In Taxpayer Subsidies To Big Oil Executives. “After introducing new legislation to hold the world’s largest energy giants accountable to American taxpayers, Senator Jon Tester is calling for end to the $4 billion in ‘taxpayer handouts’ that allow the nation’s top Big Oil executives to pull in billions in profit every year. America’s five largest oil giants receive more than $4 billion in taxpayer-funded subsidies every year. The same companies recently reported profits of $4 billion every week.” LINK

KTVZ News Oregon: Wyden, Senators Take Aim At Oil Speculators. “Sens. Maria Cantwell (D-WA) and Ron Wyden (D-OR) led a bipartisan group of 17 senators Wednesday in calling on federal regulators to expedite long-stalled rules to rein in excessive Wall Street speculation in West Texas Intermediate (WTI) crude oil futures and other energy commodities. They said numerous experts have concluded that excessive trading in oil futures is causing oil price volatility unrelated to supply-and-demand fundamentals, and contributing to rising gas prices. According to the U.S. Commodity Futures Trading Commission’s (CFTC) own report, speculators hold futures and options on more than 258 million barrels of oil. That is more than one-third of the amount in the Strategic Petroleum Reserve.” LINK

WNEW News Michigan: Sen. Stabenow, Colleagues Target Oil CEOs. “Sen. Debbie Stabenow and four other Democratic Senators sent a letter to the CEOs of the Big Five oil companies urging them to admit that they no longer need taxpayer-funded subsidies. The heads of the country’s five largest oil companies are scheduled to testify Friday before the Finance Committee.” LINK

KELO News South Dakota: Johnson’s Plan To Save At Pump. “South Dakota Senator Tim Johnson has a plan to save you some money at the pump. He’s co-sponsoring legislation that would extend ethanol and alternative fuel tax credits through 2016. In addition to lowering the cost of fuel, Johnson says it would create jobs. ‘A home-grown solution: ethanol. This is not a new answer but is one that we must continue to invest in for the future,’ S.D. Senator Tim Johnson said.” LINK

KRMS News Michigan: McCaskill Backs Bill Cutting Oil Company Tax Breaks. “With gas prices on the rise and federal debt worries, U.S. Senator Claire McCaskill’s announced her support for legislation that would help address our fiscal crisis by clawing back tax giveaways to the most profitable companies in the world.” LINK

Money Saved By Revoking Wasteful Giveaways Would Reduce Deficit

Washington, DC—Today Democrats sent a letter to the CEOs of the Big Five oil companies urging them to admit in Senate hearings tomorrow that they no longer need taxpayer-funded subsidies. The heads of the country’s five largest oil companies are scheduled to testify before the Finance Committee tomorrow.

With oil at more than $100 a barrel, these five companies make $2.8 billion a week in profits while taking home billions a year in subsidies.

“We urge you to take this opportunity to publicly admit that, given your companies’ prodigious profits, you no longer need taxpayer subsidies,” the Senators wrote. “We hope you will do the right thing for our country’s fiscal health and endorse their discontinuation.

“We are sure you will agree that our nation’s mounting debt is a serious threat to our recovering economy.  But if we are truly serious about cutting our deficit, it is imperative that we start by getting rid of wasteful and ineffective corporate subsidies that have outlived their usefulness…. While families across the country are being squeezed, your industry is doing better than ever.  And yet the U.S. government continues to dole out $4 billion a year in tax breaks to your companies. These subsidies are not sustainable, and we intend to end them.”

The full text of the letter is below:

Rex W. Tillerson                                                         John S. Watson

Exxon Mobil Corporation                                           Chevron Corporation

5959 Las Colinas Boulevard                                       6001 Bollinger Canyon Road
Irving, Texas 75039-2298                                           San Ramon, CA 94583

James J. Mulva                                                            Marvin Odum

ConocoPhillips                                                            Shell

600 North Dairy Ashford                                           One Shell Plaza

P.O. Box 2197                                                            910 Louisiana Street
Houston, TX 77252-2197                                           Houston, TX. 77002

H. Lamar McKay

BP America

501 Westlake Park Blvd

Houston, TX. 77079

Dear Sirs:

As members of the Senate Committee on Finance, we eagerly await your testimony at our panel’s hearing tomorrow. We urge you to take this opportunity to publicly admit that, given your companies’ prodigious profits, you no longer need taxpayer subsidies. We hope you will do the right thing for our country’s fiscal health and endorse their discontinuation.

We are sure you will agree that our nation’s mounting debt is a serious threat to our recovering economy.  But if we are truly serious about cutting our deficit, it is imperative that we start by getting rid of wasteful and ineffective corporate subsidies that have outlived their usefulness.  That is why we introduced legislation yesterday—the Close Big Oil Tax Loopholes Act (S. 940)—that would end $21 billion in projected taxpayer subsidies for the five largest integrated oil companies.  The former President of Shell Oil, John Hofmeister, had the courage to say, in no uncertain terms, that your companies no longer need these giveaways. We urge you, in your testimony tomorrow before the Senate Finance Committee, to acknowledge the same.

We agree with the vast majority of Americans that taxpayer subsidization of your companies is no longer necessary.  When many of these tax breaks were passed into law, oil was less than $20 a barrel. Today, the price of oil is hovering around $100 a barrel.  Because of the exponential increase in the price of oil, the companies you successfully manage have reported a combined total of $36 billion in corporate profits in the first quarter of 2011 alone. That amounts to a staggering $2.8 billion per week of profit.

Every single one of us has heard from constituents back home who are struggling with the rising price of gasoline. While families across the country are being squeezed, your industry is doing better than ever.  And yet the U.S. government continues to dole out $4 billion a year in tax breaks to your companies. These subsidies are not sustainable, and we intend to end them.

We are hopeful that you will agree that S. 940 makes economic sense in our shared goal of putting our country back on the right fiscal track.

Sincerely,

Senator Bob Menendez

Senator Chuck Schumer

Senator Debbie Stabenow

Senator Bill Nelson

Senator Ben Cardin

Money Saved Would Reduce The Deficit By Tens of Billions

Washington, DC—Nevada Senator Harry Reid and New Jersey Senator Robert Menendez today sent a “Dear Colleague” letter to Senate Republicans asking them to cosponsor legislation that would reduce the deficit by ending wasteful taxpayer handouts to big oil companies making record profits while American families pay $4 at the pump.

The bill would eliminate more than $21 billion in subsidies for the five largest, most profitable oil companies in the world. Some Republicans have publicly expressed a willingness to consider supporting legislation to cut wasteful subsidies for oil companies.

“It is encouraging that some Republicans have publicly expressed a willingness to consider supporting legislation to cut wasteful subsidies for oil companies and we look forward to working with all of you to lower the deficit,” the Senators wrote. “If we are to truly address our national debt, we will all have to tighten our belts and make sacrifices – even the most wealthy and powerful among us… The Big 5 oil companies have made nearly $1 trillion in profits in the last decade – and more than $30 billion of that in the first three months of this year alone. At the same time, many Americans are struggling to make ends meet, find a job, or fill their gas tanks with $4 per gallon gasoline. We simply cannot solve our budget problems by asking working class families to shoulder the burden alone.”

Full text of the letter is below:

Dear Colleague:

We are writing to ask that you consider cosponsoring S. 940, legislation we introduced this week to eliminate more than $21 billion in oil subsidies for the five largest, most profitable oil companies in the world.  It is encouraging that some Republicans have publicly expressed a willingness to consider supporting legislation to cut wasteful subsidies for oil companies and we look forward to working with all of you to lower the deficit.

If we are to truly address our national debt, we will all have to tighten our belts and make sacrifices – even the most wealthy and powerful among us.  The Big 5 oil companies have made nearly $1 trillion in profits in the last decade – and more than $30 billion of that in the first three months of this year alone.  At the same time, many Americans are struggling to make ends meet, find a job, or fill their gas tanks with $4 per gallon gasoline.  We simply cannot solve our budget problems by asking working class families to shoulder the burden alone.

Some have claimed that cutting $2 billion in annual oil subsidies to the Big 5 oil companies will somehow make oil and gasoline more expensive.  We all know this argument is false.  If we just compare the $2 billion in taxpayer subsidies to the projected $125 billion in profits the Big 5 oil companies are expected to make this year, it becomes very clear that repealing these subsidies would be only a small sacrifice for these companies.  If the Big 5 oil companies could live with just $123 billion in profits, they could pay their fair share in taxes, help lower the deficit, and not raise the price of gasoline.

Thank you for taking the time to consider cosponsoring our bill to eliminate more than $21 billion in oil subsidies for the Big 5 oil companies.  Please do not hesitate to contact either of us or our staff if you have any questions.  We look forward to working with you to lower the deficit in an equitable and effective manner.

Sincerely,

Senate Majority Leader Harry Reid

Senator Robert Menendez

Money Saved Would Reduce The Deficit By Tens of Billions

Washington, DC—Nevada Senator Harry Reid and New Jersey Senator Robert Menendez today sent a “Dear Colleague” letter to Senate Republicans asking them to cosponsor legislation that would reduce the deficit by ending wasteful taxpayer handouts to big oil companies making record profits while American families pay $4 at the pump.

The bill would eliminate more than $21 billion in subsidies for the five largest, most profitable oil companies in the world. Some Republicans have publicly expressed a willingness to consider supporting legislation to cut wasteful subsidies for oil companies.

“It is encouraging that some Republicans have publicly expressed a willingness to consider supporting legislation to cut wasteful subsidies for oil companies and we look forward to working with all of you to lower the deficit,” the Senators wrote. “If we are to truly address our national debt, we will all have to tighten our belts and make sacrifices – even the most wealthy and powerful among us… The Big 5 oil companies have made nearly $1 trillion in profits in the last decade – and more than $30 billion of that in the first three months of this year alone. At the same time, many Americans are struggling to make ends meet, find a job, or fill their gas tanks with $4 per gallon gasoline. We simply cannot solve our budget problems by asking working class families to shoulder the burden alone.”

Full text of the letter is below:

Dear Colleague:

We are writing to ask that you consider cosponsoring S. 940, legislation we introduced this week to eliminate more than $21 billion in oil subsidies for the five largest, most profitable oil companies in the world.  It is encouraging that some Republicans have publicly expressed a willingness to consider supporting legislation to cut wasteful subsidies for oil companies and we look forward to working with all of you to lower the deficit.

If we are to truly address our national debt, we will all have to tighten our belts and make sacrifices – even the most wealthy and powerful among us.  The Big 5 oil companies have made nearly $1 trillion in profits in the last decade – and more than $30 billion of that in the first three months of this year alone.  At the same time, many Americans are struggling to make ends meet, find a job, or fill their gas tanks with $4 per gallon gasoline.  We simply cannot solve our budget problems by asking working class families to shoulder the burden alone.

Some have claimed that cutting $2 billion in annual oil subsidies to the Big 5 oil companies will somehow make oil and gasoline more expensive.  We all know this argument is false.  If we just compare the $2 billion in taxpayer subsidies to the projected $125 billion in profits the Big 5 oil companies are expected to make this year, it becomes very clear that repealing these subsidies would be only a small sacrifice for these companies.  If the Big 5 oil companies could live with just $123 billion in profits, they could pay their fair share in taxes, help lower the deficit, and not raise the price of gasoline.

Thank you for taking the time to consider cosponsoring our bill to eliminate more than $21 billion in oil subsidies for the Big 5 oil companies.  Please do not hesitate to contact either of us or our staff if you have any questions.  We look forward to working with you to lower the deficit in an equitable and effective manner.

Sincerely,

Senate Majority Leader Harry Reid

Senator Robert Menendez

Money Saved By Revoking Wasteful Giveaways Would Reduce Deficit

Washington, DC—Today Democrats sent a letter to the CEOs of the Big Five oil companies urging them to admit in Senate hearings tomorrow that they no longer need taxpayer-funded subsidies. The heads of the country’s five largest oil companies are scheduled to testify before the Finance Committee tomorrow.

With oil at more than $100 a barrel, these five companies make $2.8 billion a week in profits while taking home billions a year in subsidies.

“We urge you to take this opportunity to publicly admit that, given your companies’ prodigious profits, you no longer need taxpayer subsidies,” the Senators wrote. “We hope you will do the right thing for our country’s fiscal health and endorse their discontinuation.

“We are sure you will agree that our nation’s mounting debt is a serious threat to our recovering economy.  But if we are truly serious about cutting our deficit, it is imperative that we start by getting rid of wasteful and ineffective corporate subsidies that have outlived their usefulness…. While families across the country are being squeezed, your industry is doing better than ever.  And yet the U.S. government continues to dole out $4 billion a year in tax breaks to your companies. These subsidies are not sustainable, and we intend to end them.”

The full text of the letter is below:

Rex W. Tillerson                                                         John S. Watson

Exxon Mobil Corporation                                           Chevron Corporation

5959 Las Colinas Boulevard                                       6001 Bollinger Canyon Road
Irving, Texas 75039-2298                                           San Ramon, CA 94583

James J. Mulva                                                            Marvin Odum

ConocoPhillips                                                            Shell

600 North Dairy Ashford                                           One Shell Plaza

P.O. Box 2197                                                            910 Louisiana Street
Houston, TX 77252-2197                                           Houston, TX. 77002

H. Lamar McKay

BP America

501 Westlake Park Blvd

Houston, TX. 77079

Dear Sirs:

As members of the Senate Committee on Finance, we eagerly await your testimony at our panel’s hearing tomorrow. We urge you to take this opportunity to publicly admit that, given your companies’ prodigious profits, you no longer need taxpayer subsidies. We hope you will do the right thing for our country’s fiscal health and endorse their discontinuation.

We are sure you will agree that our nation’s mounting debt is a serious threat to our recovering economy.  But if we are truly serious about cutting our deficit, it is imperative that we start by getting rid of wasteful and ineffective corporate subsidies that have outlived their usefulness.  That is why we introduced legislation yesterday—the Close Big Oil Tax Loopholes Act (S. 940)—that would end $21 billion in projected taxpayer subsidies for the five largest integrated oil companies.  The former President of Shell Oil, John Hofmeister, had the courage to say, in no uncertain terms, that your companies no longer need these giveaways. We urge you, in your testimony tomorrow before the Senate Finance Committee, to acknowledge the same.

We agree with the vast majority of Americans that taxpayer subsidization of your companies is no longer necessary.  When many of these tax breaks were passed into law, oil was less than $20 a barrel. Today, the price of oil is hovering around $100 a barrel.  Because of the exponential increase in the price of oil, the companies you successfully manage have reported a combined total of $36 billion in corporate profits in the first quarter of 2011 alone. That amounts to a staggering $2.8 billion per week of profit.

Every single one of us has heard from constituents back home who are struggling with the rising price of gasoline. While families across the country are being squeezed, your industry is doing better than ever.  And yet the U.S. government continues to dole out $4 billion a year in tax breaks to your companies. These subsidies are not sustainable, and we intend to end them.

We are hopeful that you will agree that S. 940 makes economic sense in our shared goal of putting our country back on the right fiscal track.

Sincerely,

Senator Bob Menendez

Senator Chuck Schumer

Senator Debbie Stabenow

Senator Bill Nelson

Senator Ben Cardin

“Saving money requires a lot of difficult choices.  Which programs do we cut in tough times?  Which priorities are more important than others?  As we’ve seen here in the Senate and across the country over the last few months, a lot of people have a lot of different answers to those questions.

“Then there are the choices that aren’t so tough at all.  There’s clear waste in the federal budget and the tax code.  And then there’s Big Oil.  We’re giving billions and billions of dollars every year – $4 billion to be exact – every cent of it taxpayer money – to oil companies that already are more than successful.

“These oil companies made $36 billion in profits during the first quarter of this year alone.  Exxon made 70 percent more this year than last year.

“The industry’s $36 billion in quarterly profits means it’s making $12 billion a month.  That’s $4 billion a week.  And yet the U.S. government is giving these companies $4 billion a year in corporate welfare?

“Why are taxpayers on the hook for oil companies that are doing just fine on their own?

“If we’re serious about reducing the deficit, this is an easy place to start.  It’s a no-brainer.  Let’s use the savings from these taxpayer giveaways to drive down the deficit, not drive up oil company profits.

“Let’s make one thing clear: wasteful subsidies have nothing to do with gas prices.  These oil handouts have existed for decades.  Prices have continued to rise.  Oil executives’ paychecks have gone up too.  The $4 billion a gallon Americans are paying at the pump are not related to these subsidies – but those profits are proof enough that they don’t need them.

“Even Big Oil CEOs like the head of Shell, and Republicans in Congress including the Speaker of the House, have admitted that these subsidies aren’t necessary.

“Some of our conservative colleagues have a hard time stomaching giving a hand to those who need it the most.  We should all agree – in the interest of fairness, common sense, and saving taxpayer money – that we can cut out corporate welfare to those Big Oil firms who need it the least.”

$21 Billion Recouped Over 10 Years Will Go Toward Reducing The Deficit

Washington, D.C.– With the nation’s five largest oil companies taking home nearly $1 trillion in profits over the past decade, a group of Democratic Senators today announced legislation to finally put an end to the unfair tax subsidies that only benefit Big Oil’s bottom line and CEOs. As families are paying more than $4 per gallon in gas prices and doing their part to address the country’s growing deficit, Big Oil needs to step up to the plate and share in the sacrifice to help balance the budget.

U.S. Sens. Robert Menendez (D-NJ), Sherrod Brown (D-OH), Claire McCaskill (D-MO), and Jon Tester (D-MT) announced the introduction of the Close Big Oil Tax Loopholes Act, which will put an end to taxpayer handouts to the 5 largest oil companies making record profits, and use the  billions in savings to help reduce the deficit. The Senators also called on Republicans to support the effort to close the loopholes and join other Republicans, including Speaker Boehner and Representative Ryan, who have voiced support for cutting subsidies.

“At a time when families are feeling the pain at the pump and our deficit keeps growing at an alarming rate, we simply can’t afford to keep giving away billions in taxpayer handouts to oil companies that are doing nothing to help lower prices. The ‘Close Big Oil Tax Loopholes Act’ is based on a simple premise: we need everyone to do their share to lower the deficit, not just working families and the elderly,” Menendez said.

“It’s bad enough that Ohioans have to pay more than $4.00 a gallon at the gas pump. They shouldn’t need to subsidize the oil industry through the tax code as well. Big Oil is reaping big profits while working- and middle-class Ohioans struggle to make ends meet. It’s about time this corporate welfare meet its end,” Brown said.

“If we are going to get serious about addressing our national debt,  we can no longer afford to keep giving away taxpayer’s money to the most profitable companies in the world. There are going to be some tough decisions when it comes to cutting back, but I hope we can agree that our government writing checks to oil and gas companies with tax dollars should be on the chopping block,” McCaskill said.

“For years, the world’s biggest oil companies have slipped their way through every loophole in the book to pad their profits at the expense of American taxpayers,” Tester said.  “This bill restores fairness and holds these corporations accountable to taxpayers, who deserve no less.”

According to a recent report from Citizens for Tax Justice, Big Oil companies spent most of their profits in the purchase of their own stocks and boosting its dividends between 2005-2010. In 2010, four of the largest “Big Five” oil companies (excluding BP due to the oil spill) allocated only 18 percent of their post tax profits on exploration and 60 percent on dividends and stock repurchases. Link to the full Report: http://www.ctj.org/pdf/energy20110429.pdf

Summary of the bill:

Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.

U.S. taxpayers are taxed on their income worldwide, but are entitled to a dollar-for-dollar tax credit for any income taxes paid to a foreign government.  U.S. oil and gas companies have been accused of disguising royalty payments to foreign governments as foreign taxes.  This allows them to lower their taxes in the U.S.  The bill would close this loophole that amounts to a U.S. subsidy for foreign oil production for the Big 5.

Limitation on deduction for income attributable to the production of oil, natural gas, or primary products thereof.

In 2004 Congress enacted Section 199, the domestic manufacturing tax deduction.  In 2008 Congress froze the Section 199 deduction at 6% for all oil and gas activity.  The bill eliminates the Section 199 deduction for the Big 5.

Limitation on deduction for intangible drilling and development costs.

Would deny the Big 5 oil companies the option of expensing Intangible Drilling Costs (IDCs) and require such costs be capitalized. IDCs are expenditures such as wages, fuel, repairs, hauling, and supplies necessary for the drilling of oil wells. Currently, integrated oil companies can expense 70% of the cost of IDCs.  The bill requires the Big 5 to capitalize all of its IDC costs.

Limitation on percentage depletion allowance for oil and gas wells.

Firms that extract oil and gas are permitted a deduction to recover their capital investment under one of two methods.  Cost depletion allows for the recovery of the actual capital investment—the costs of discovering, purchasing, and developing the well—over the period the well produces income.  Under this method, the taxpayer’s total deductions cannot exceed its original investment.

Percentage depletion allows the cost recovery to be computed using a percentage of the revenue from the sale of the oil or gas.  Under this method, total deductions could (and often do) exceed the taxpayer’s capital investment.  The bill repeals percentage depletion for the Big 5.

Limitation on deduction for tertiary injectants.

Tertiary injectants are used in enhanced oil recovery to drive more oil from an existing well.  Currently, oil companies are allowed to deduct the cost of tertiary injectants rather than capitalizing their costs and recovering them over time. The bill requires the Big 5 to capitalize the cost of tertiary injectants it uses during the year and recover those costs over time.

Repeal of Outer Continental Shelf deep water and deep gas royalty relief

Repeals Sections 344 and 345 of the Energy Policy Act of 2005.  Section 344 extended existing deep gas incentives and Section 345 provided additional mandatory royalty relief for certain deepwater oil and gas production.  These changes will help ensure that Americans receive fair value for Federally-owned fossil fuel resources.

Deficit Reduction

All savings realized as the result of the bill’s elimination of the tax breaks and other subsidies currently going to the major integrated oil companies are devoted to deficit reduction.

$21 Billion Recouped Over 10 Years Will Go Toward Reducing The Deficit

Washington, D.C.– With the nation’s five largest oil companies taking home nearly $1 trillion in profits over the past decade, a group of Democratic Senators today announced legislation to finally put an end to the unfair tax subsidies that only benefit Big Oil’s bottom line and CEOs. As families are paying more than $4 per gallon in gas prices and doing their part to address the country’s growing deficit, Big Oil needs to step up to the plate and share in the sacrifice to help balance the budget.

U.S. Sens. Robert Menendez (D-NJ), Sherrod Brown (D-OH), Claire McCaskill (D-MO), and Jon Tester (D-MT) announced the introduction of the Close Big Oil Tax Loopholes Act, which will put an end to taxpayer handouts to the 5 largest oil companies making record profits, and use the  billions in savings to help reduce the deficit. The Senators also called on Republicans to support the effort to close the loopholes and join other Republicans, including Speaker Boehner and Representative Ryan, who have voiced support for cutting subsidies.

“At a time when families are feeling the pain at the pump and our deficit keeps growing at an alarming rate, we simply can’t afford to keep giving away billions in taxpayer handouts to oil companies that are doing nothing to help lower prices. The ‘Close Big Oil Tax Loopholes Act’ is based on a simple premise: we need everyone to do their share to lower the deficit, not just working families and the elderly,” Menendez said.

“It’s bad enough that Ohioans have to pay more than $4.00 a gallon at the gas pump. They shouldn’t need to subsidize the oil industry through the tax code as well. Big Oil is reaping big profits while working- and middle-class Ohioans struggle to make ends meet. It’s about time this corporate welfare meet its end,” Brown said.

“If we are going to get serious about addressing our national debt,  we can no longer afford to keep giving away taxpayer’s money to the most profitable companies in the world. There are going to be some tough decisions when it comes to cutting back, but I hope we can agree that our government writing checks to oil and gas companies with tax dollars should be on the chopping block,” McCaskill said.

“For years, the world’s biggest oil companies have slipped their way through every loophole in the book to pad their profits at the expense of American taxpayers,” Tester said.  “This bill restores fairness and holds these corporations accountable to taxpayers, who deserve no less.”

According to a recent report from Citizens for Tax Justice, Big Oil companies spent most of their profits in the purchase of their own stocks and boosting its dividends between 2005-2010. In 2010, four of the largest “Big Five” oil companies (excluding BP due to the oil spill) allocated only 18 percent of their post tax profits on exploration and 60 percent on dividends and stock repurchases. Link to the full Report: http://www.ctj.org/pdf/energy20110429.pdf

Summary of the bill:

Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.

U.S. taxpayers are taxed on their income worldwide, but are entitled to a dollar-for-dollar tax credit for any income taxes paid to a foreign government.  U.S. oil and gas companies have been accused of disguising royalty payments to foreign governments as foreign taxes.  This allows them to lower their taxes in the U.S.  The bill would close this loophole that amounts to a U.S. subsidy for foreign oil production for the Big 5.

Limitation on deduction for income attributable to the production of oil, natural gas, or primary products thereof.

In 2004 Congress enacted Section 199, the domestic manufacturing tax deduction.  In 2008 Congress froze the Section 199 deduction at 6% for all oil and gas activity.  The bill eliminates the Section 199 deduction for the Big 5.

Limitation on deduction for intangible drilling and development costs.

Would deny the Big 5 oil companies the option of expensing Intangible Drilling Costs (IDCs) and require such costs be capitalized. IDCs are expenditures such as wages, fuel, repairs, hauling, and supplies necessary for the drilling of oil wells. Currently, integrated oil companies can expense 70% of the cost of IDCs.  The bill requires the Big 5 to capitalize all of its IDC costs.

Limitation on percentage depletion allowance for oil and gas wells.

Firms that extract oil and gas are permitted a deduction to recover their capital investment under one of two methods.  Cost depletion allows for the recovery of the actual capital investment—the costs of discovering, purchasing, and developing the well—over the period the well produces income.  Under this method, the taxpayer’s total deductions cannot exceed its original investment.

Percentage depletion allows the cost recovery to be computed using a percentage of the revenue from the sale of the oil or gas.  Under this method, total deductions could (and often do) exceed the taxpayer’s capital investment.  The bill repeals percentage depletion for the Big 5.

Limitation on deduction for tertiary injectants.

Tertiary injectants are used in enhanced oil recovery to drive more oil from an existing well.  Currently, oil companies are allowed to deduct the cost of tertiary injectants rather than capitalizing their costs and recovering them over time. The bill requires the Big 5 to capitalize the cost of tertiary injectants it uses during the year and recover those costs over time.

Repeal of Outer Continental Shelf deep water and deep gas royalty relief

Repeals Sections 344 and 345 of the Energy Policy Act of 2005.  Section 344 extended existing deep gas incentives and Section 345 provided additional mandatory royalty relief for certain deepwater oil and gas production.  These changes will help ensure that Americans receive fair value for Federally-owned fossil fuel resources.

Deficit Reduction

All savings realized as the result of the bill’s elimination of the tax breaks and other subsidies currently going to the major integrated oil companies are devoted to deficit reduction.

Money Saved By Revoking Handouts Will Go Towards Reducing The Deficit

Washington, DC—Nevada Senator Harry Reid and New Jersey Senator Robert Menendez today urged Senate colleagues to join them in ending wasteful taxpayer handouts to big oil companies making record profits while American families make sacrifices to afford rising prices at the pump, and use the savings to reduce the deficit.

Over the last decade, the nation’s five largest oil companies have taken home nearly $1 trillion in profits and tens of billions of dollars in taxpayer subsidies. Every year, taxpayers are giving away more than $4 billion to oil companies in the form of tax deductions, subsidies and royalty relief, the letter says. Meanwhile, they’ve hiked gas prices to $4.00 a gallon in some states.

And CEOs from the Big 5 oil companies have testified that they do not need incentives for oil exploration. And even Speaker John Boehner and Rep. Paul Ryan have said it is time to look at cutting oil subsidies.

“Every one of us is hearing from families back home who are struggling with rising gas prices. At the same time, we’re reading this week about the record-breaking profits that the major oil companies are raking in– more than $30 billion in profits for the first quarter of 2011 alone. Something just doesn’t add up.  Now that the five biggest oil companies have become some of the most profitable companies in the world, taxpayers shouldering $4 a gallon gas prices should not have to foot the bill for tens of billions of outdated, unnecessary subsidies that go straight into the pockets of oil industry executives particularly in light of our increasing deficit. Just as we ask families to do their part to help reduce the deficit, Big oil companies need to step up to the plate and share in the sacrifice.”

The senators believe it is time to work on a bipartisan basis to ask oil companies to pay their fair share and help us lower the deficit.

“By working together to end these wasteful giveaways to oil companies, we will not only make the tax code more fair, but we will decrease the federal deficit by tens of billions of dollars over the next ten years,” they wrote. “To a family struggling to pay rising gas prices, this is not a partisan or political issue – this is an economic issue. In the nature of bipartisanship, let’s work together to put the needs of middle-class families over the whims of the most profitable industry in the world.”

Full text of the letter is below:

Dear Colleague,

Every one of us is hearing from families back home who are struggling with rising gas prices. At the same time, we’re reading this week about the record-breaking profits that the major oil companies are raking in– more than $30 billion in profits for the first quarter of 2011 alone. Something just doesn’t add up.  Now that the five biggest oil companies have become some of the most profitable companies in the world, taxpayers shouldering $4 a gallon gas prices should not have to foot the bill for tens of billions of outdated, unnecessary subsidies that go straight into the pockets of oil industry executives particularly in light of our increasing deficit. Just as we ask families to do their part to help reduce the deficit, Big oil companies need to step up to the plate and share in the sacrifice.

Every year, taxpayers are giving away more than $4 billion to oil companies in the form of tax deductions, subsidies and royalty relief. It has always been questionable whether or not these subsidies for oil companies do anything to encourage new production, and it is especially questionable at a time when oil companies are reporting record profits.  The fact is, oil companies will continue to drill and produce oil with or without these subsidies. Testifying before the Senate in 2005, every CEO of the five biggest oil companies acknowledged that they do not need incentives to explore for oil and gas. And just this year, the former CEO of Shell Oil said “subsidies are not necessary.”

Last week, we were encouraged to hear some of our Republican colleagues, including Speaker Boehner, say that big oil companies “ought to be paying their fair share.” We could not agree more. Closing these loopholes will not raise gas prices for American consumers. Historically, gas prices have risen even as the major oil companies reap billions in tax subsidies that have outlived their usefulness, and there is scant evidence that ending these subsidies will have any effect on how oil and gas are priced in the global market.

In the Senate, we will act imminently to close these loopholes. Given the unprecedented number of lawmakers who have stepped forward in support of this idea for the first time, we believe this new push to end oil subsidies has a strong chance to succeed where previous efforts have failed. We invite ideas from both sides of the aisle about how best to bring these wasteful giveaways to an end. We intend to proceed with a bill that maximizes our chances of garnering bipartisan appeal.

By working together to end these wasteful giveaways to oil companies, we will not only make the tax code more fair, but we will decrease the federal deficit by tens of billions of dollars over the next ten years.

To a family struggling to pay rising gas prices, this is not a partisan or political issue – this is an economic issue. In the nature of bipartisanship, let’s work together to put the needs of middle-class families over the whims of the most profitable industry in the world.

Sincerely,

Senate Majority Leader Harry Reid

Senator Robert Menendez

Money Saved By Revoking Handouts Will Go Towards Reducing The Deficit

Washington, DC—Nevada Senator Harry Reid and New Jersey Senator Robert Menendez today urged Senate colleagues to join them in ending wasteful taxpayer handouts to big oil companies making record profits while American families make sacrifices to afford rising prices at the pump, and use the savings to reduce the deficit.

Over the last decade, the nation’s five largest oil companies have taken home nearly $1 trillion in profits and tens of billions of dollars in taxpayer subsidies. Every year, taxpayers are giving away more than $4 billion to oil companies in the form of tax deductions, subsidies and royalty relief, the letter says. Meanwhile, they’ve hiked gas prices to $4.00 a gallon in some states.

And CEOs from the Big 5 oil companies have testified that they do not need incentives for oil exploration. And even Speaker John Boehner and Rep. Paul Ryan have said it is time to look at cutting oil subsidies.

“Every one of us is hearing from families back home who are struggling with rising gas prices. At the same time, we’re reading this week about the record-breaking profits that the major oil companies are raking in– more than $30 billion in profits for the first quarter of 2011 alone. Something just doesn’t add up.  Now that the five biggest oil companies have become some of the most profitable companies in the world, taxpayers shouldering $4 a gallon gas prices should not have to foot the bill for tens of billions of outdated, unnecessary subsidies that go straight into the pockets of oil industry executives particularly in light of our increasing deficit. Just as we ask families to do their part to help reduce the deficit, Big oil companies need to step up to the plate and share in the sacrifice.”

The senators believe it is time to work on a bipartisan basis to ask oil companies to pay their fair share and help us lower the deficit.

“By working together to end these wasteful giveaways to oil companies, we will not only make the tax code more fair, but we will decrease the federal deficit by tens of billions of dollars over the next ten years,” they wrote. “To a family struggling to pay rising gas prices, this is not a partisan or political issue – this is an economic issue. In the nature of bipartisanship, let’s work together to put the needs of middle-class families over the whims of the most profitable industry in the world.”

Full text of the letter is below:

Dear Colleague,

Every one of us is hearing from families back home who are struggling with rising gas prices. At the same time, we’re reading this week about the record-breaking profits that the major oil companies are raking in– more than $30 billion in profits for the first quarter of 2011 alone. Something just doesn’t add up.  Now that the five biggest oil companies have become some of the most profitable companies in the world, taxpayers shouldering $4 a gallon gas prices should not have to foot the bill for tens of billions of outdated, unnecessary subsidies that go straight into the pockets of oil industry executives particularly in light of our increasing deficit. Just as we ask families to do their part to help reduce the deficit, Big oil companies need to step up to the plate and share in the sacrifice.

Every year, taxpayers are giving away more than $4 billion to oil companies in the form of tax deductions, subsidies and royalty relief. It has always been questionable whether or not these subsidies for oil companies do anything to encourage new production, and it is especially questionable at a time when oil companies are reporting record profits.  The fact is, oil companies will continue to drill and produce oil with or without these subsidies. Testifying before the Senate in 2005, every CEO of the five biggest oil companies acknowledged that they do not need incentives to explore for oil and gas. And just this year, the former CEO of Shell Oil said “subsidies are not necessary.”

Last week, we were encouraged to hear some of our Republican colleagues, including Speaker Boehner, say that big oil companies “ought to be paying their fair share.” We could not agree more. Closing these loopholes will not raise gas prices for American consumers. Historically, gas prices have risen even as the major oil companies reap billions in tax subsidies that have outlived their usefulness, and there is scant evidence that ending these subsidies will have any effect on how oil and gas are priced in the global market.

In the Senate, we will act imminently to close these loopholes. Given the unprecedented number of lawmakers who have stepped forward in support of this idea for the first time, we believe this new push to end oil subsidies has a strong chance to succeed where previous efforts have failed. We invite ideas from both sides of the aisle about how best to bring these wasteful giveaways to an end. We intend to proceed with a bill that maximizes our chances of garnering bipartisan appeal.

By working together to end these wasteful giveaways to oil companies, we will not only make the tax code more fair, but we will decrease the federal deficit by tens of billions of dollars over the next ten years.

To a family struggling to pay rising gas prices, this is not a partisan or political issue – this is an economic issue. In the nature of bipartisanship, let’s work together to put the needs of middle-class families over the whims of the most profitable industry in the world.

Sincerely,

Senate Majority Leader Harry Reid

Senator Robert Menendez

SPEAKER JOHN BOEHNER: Right. Listen, they’re gonna pay their fair share in taxes and they should… We’re in a time when– when the federal government is short on revenues. We need to control spending but we need to have revenues to keep the government movin’. And they oughta be payin’ their fair share

JONATHAN KARL: Well, the President’s proposed doing away with eight– eight different subsidies. This would be about $4 billion a year. You– you think that’s worth doin’?

SPEAKER JOHN BOEHNER: I think we gotta take a look at it.  [ABC News, 4/25/11]

Yet Senate Republican Leaders Have Opposed Repealing Oil and Gas Tax Breaks:

McConnell Called Repeal of Big Oil Company Tax Breaks “Mini-Van Tax.” McConnell said in a floor statement,  “At a time when increasing gas prices are already threatening our economic recovery a minivan tax that some on the other side have proposed won’t solve our nation’s fiscal crisis.”  [McConnell Floor Statement, 3/9/11]

·         McConnell Against Ending Subsidies For Oil Companies, Falsely Claims As A Tax Increase. In a statement McConnell says: “President Obama has proposed raising energy taxes of up to $90 billion over the next 10 years—most of which would be passed on to the consumer in the form of higher gas and electricity prices. The taxes could also slow down domestic oil production, enough to put up to 165,000 jobs in jeopardy over the next 10 years…Republicans have proposed two simple ideas that would provide real relief at the pump. First, we should seriously reform the rules and regulations holding America back from increased domestic energy production. And second, we should block any new regulations that would drive up the costs of energy production.” [Press Release, 4/22/11]

Cornyn In Favor Of Giving Billions In Subsidies To Oil Companies. Business Week reported that Cornyn, “Opposes the President’s efforts to repeal oil- and gas-industry tax breaks.” [Business Week, 4/07/11]

·         John Cornyn Claims Tax Hikes on Big Oil Will Result in Higher Prices Felt at Pump. Senator JOHN CORNYN (Republican, Texas): It may be fashionable to beat up on Big Oil and say, let’s tax the oil companies because they’re making too much money. But you know what, if we raise taxes on the oil companies, we all end up paying an increased price of gasoline at the pump. [NPR, 4/16/08]

“Spin can’t change the fact that Republicans’ plan reopens the doughnut hole, costing seniors more than $2 billion next year alone. No matter what they say, the fact is the GOP wants to finance their tax breaks for millionaires and billionaires by hiking prescription drug prices for seniors.”

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Myth: House Budget Committee Chairman Paul Ryan wrote, “The House Republican budget keeps America’s promises to seniors and those near retirement by making no changes to their current arrangements.”

Fact: Under the GOP budget, Wisconsin seniors will pay $39 million more for their prescription drugs next year alone.

Myth: House Majority Leader Eric Cantor said yesterday, “Now we are also saying for today’s seniors as well as those nearing retirement, we’re not touching your benefits because we know the political peril that is attached to that.”

Fact: Under the GOP budget, Virginia seniors will pay $51 million more for their prescription drugs next year alone.

Myth: “If you are 55 and older, it would mean no changes to Medicare whatsoever,” said U.S. Rep. Mario Diaz-Balart, R-Miami.

Fact: Under the GOP budget, Florida seniors will pay $155 million more for their prescription drugs next year alone.

Myth: “These programs would only affect people 54 and under,” said U.S. Rep Todd Rokita (R-IN).

Fact: Under the GOP budget, Indiana seniors will pay $54 million more for their prescription drugs next year alone.

“The President’s responsible vision for reducing the deficit provides a clear contrast with Republicans’ reckless plan to end Medicare and Social Security. The President’s plan will reduce the deficit by more than $4 trillion while protecting seniors on Medicare, and it recognizes that Social Security should be dealt with separately. The Republican plan, on the other hand, uses the shared goal of reducing our deficit as an excuse for slashing seniors’ hard-earned benefits in order to pay for tax breaks for millionaires and billionaires.

“There’s been a lot of talk about shared sacrifice when it comes to cutting spending and reducing the deficit. Republicans believe the sacrifice should fall mainly on seniors and the middle class, while millionaires and big corporations get more tax breaks. As the President made clear, Democrats have a different view. We believe that the responsible approach is to make sure the wealthiest Americans contribute their fair share as we try to bring our fiscal situation back into balance.

“I look forward to sitting down with my colleagues and the President to chart a course to deficit reduction that strengthens the middle class and protects seniors.”

Washington, D.C. – Senate Democratic leaders unveiled a detailed plan to create jobs, promote growth and help America win the future by making smart investments in education, innovation and infrastructure while cutting spending to live within our means. Senate Democrats also announced their support for President Obama’s five-year spending freeze, which will save $400 billion over the ten years and bring domestic discretionary spending to the lowest levels since President Eisenhower.

Senators Harry Reid, Dick Durbin, Charles E. Schumer and Patty Murray detailed legislative priorities that will chart a course for meeting the goal set in President Obama’s State of the Union of out-educating, out-innovating and out-building the rest of the world. The agenda balances the need for critical investments with a serious commitment to deficit reduction.

“While Republicans say ‘so be it’ to the unemployed, Senate Democrats are working to create jobs and make America more competitive,” Sen. Reid said. “That means making smart choices about cutting waste and excess, and living within our means. As we reduce government spending and cut the deficit, we will continue to create jobs and strengthen our future by becoming the world leader in clean energy, reviving American manufacturing and preparing our workforce for the jobs of tomorrow.”

Democrats’ plan also calls for reforms to the tax code by cracking down on cheaters, eliminating inefficient loopholes and ending giveaways to billionaires and special interests.

“In order to win the future, Democrats are proposing an agenda that will help us out-innovate, out-build and out-educate our competition,” Sen. Durbin said. “This agenda will help us create jobs, reduce the deficit and maintain our position as a world leader in science and innovation.”

To out-innovate our competitors, the plan calls for expanding tax credits for research and development, investing in clean energy technologies and more efficient buildings and homes, reforming our patent process and increasing cyber security.

“Rebuilding our crumbling infrastructure is a must-do. In addition to putting Americans to work, it will allow people and goods to travel more efficiently and speed the flow of commerce,” Sen. Schumer said. “We deliberately prioritized policies that had strong potential for gaining bipartisan consensus. We will promote each of these policies at the same time that we get serious about deficit reduction. Our commitment to a five-year spending freeze will make good on the President’s call to balance critical investments that create jobs with a commitment to reducing waste in the budget.”

To out-build our competitors and create the infrastructure we need to compete in a global marketplace, the Democrats’ agenda calls for modernization of air travel, transportation, internet, manufacturing and electric grid infrastructure, measures that will create jobs.

“We can and we will out-educate our global competitors and build a highly-skilled workforce for the 21^st century,” Sen. Murray said. “We will improve the Workforce Investment Act, fix No Child Left Behind, and make the College Tuition Tax Credit permanent. This Democratic education and workforce agenda is what competing is all about.”

To out-educate our competitors and make sure American workers can compete for the high-paying jobs of today and tomorrow, Democrats’ plan also calls for reforms to the nation’s education system to ensure a competitive workforce, and college tax credits that will expand opportunities for American workers.

Full text of the agenda is below.

###

Winning the Future

To win the future, we must out-build, out-innovate, and out-educate the rest of the world, so that the jobs and industries of our time will take root in America.  The only way we can make those necessary investments in our future is if our government starts living within its means and reduces our federal deficit.  That’s why Senate Democrats support, at a minimum, President Obama’s five-year spending freeze to save $400 billion over the next ten years and bring domestic discretionary spending to the lowest levels since President Eisenhower, and responsible tax reform to close expensive loopholes, eliminate unnecessary giveaways, and reduce burdens on U.S. taxpayers and businesses.

DEFICIT-REDUCTION

Invest in What Makes America Stronger and Cut What Doesn’t

Five-Year Spending Freeze:  Senate Democrats support, at a minimum, President Obama’s five-year spending freeze to cut domestic discretionary spending by $400 billion over ten years and bring domestic discretionary spending to the lowest levels since President Eisenhower.

Tax Reform: Senate Democrats will work to simplify and shrink the tax code to reduce burdens on taxpayers and businesses so our economy can grow and create more jobs.  These reforms will eliminate special interest tax giveaways and extra tax breaks for millionaires and billionaires, while cracking down on cheaters and closing loopholes that are inefficient and fail to accomplish their stated purpose.

OUT-INNOVATE

Keep the U.S. the Global Leader in Cutting-Edge Technologies

Expand and Extend R&D Tax Credit:  Senate Democrats will push legislation to increase and make permanent the income tax credit for research and development.  The R&D credit has proven to be an important incentive for U.S. firms to encourage them to make the research and development investments necessary to promote economic growth and create jobs.  Unfortunately, the temporary nature of the credit impairs its effectiveness.

Jumpstart Clean Energy Technology: Senate Democrats will develop a Clean Energy Deployment Administration (CEDA) to accelerate the technology revolution we need to compete in the 21^st century.  CEDA will move a wide range of clean energy technologies from the laboratory to the marketplace, by combining the technological expertise of the Department of Energy with a new, independently overseen cadre of business professionals who can craft the financial support that entrepreneurs need to negotiate the “valley of death” between an innovative idea and full-scale commercialization here in America.  CEDA will not only provide a pathway for the technologies that are in today’s labs to be built in America, it will make it more likely that tomorrow’s labs will continue to be based here.

Energy Efficient Buildings and Homes: Senate Democrats will seek to create high-paying jobs by promoting energy-efficient renovations in a variety of buildings, including single-family residences, multi-family residences, commercial buildings, and buildings in rural communities.  Through a mix of rebates, low-interest loans, and tax incentives for energy renovations, Democrats hope to create hundreds of thousands of new jobs in hard-hit construction and manufacturing sectors while saving consumers, businesses, and commercial building owners money on their energy bills. In the last Congress, bipartisan bills embodying these concepts included the “Home Star,” “Building Star,” and “Rural Star” programs.  Working with consumers, businesses and the Administration, Senate Democrats will introduce follow-on proposals to advance building energy efficiency.

America Invents Act of 2011:  It has been nearly 60 years since the last meaningful reforms of the nation’s patent system were enacted.  Technological advances, improvements to manufacturing, and an evolving marketplace make it critical for the United States patent system to allow inventors and innovators to compete in the global marketplace. The Patent Reform Act of 2011 was introduced in the Senate on January 25, 2011. The Senate Judiciary Committee unanimously approved the legislation by a 15-0 vote on February 3, 2011.

Encourage Small Business Innovation: Senate Democrats will work to improve the successful Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, to give small business entrepreneurs with good ideas the opportunity to build a company and create high-paying jobs. Established during the Reagan administration, SBIR makes sure that the nation’s small, high-tech and innovative businesses are a significant part of the federal government’s research and development efforts.

Cyber Security to Protect America’s Entrepreneurs from IP Theft: Senate Democrats will seek to enact legislation to enhance our nation’s cyber security and promote the development of a well-educated, well-trained cyber workforce.  Improving cyber security across government agencies, critical infrastructure, and the private sector will prevent theft of the intellectual property that is a key engine of the U.S. economy, create a jobs-rich market in security technologies and evaluation, and prevent the cyber attacks that now cost American businesses millions of dollars per year.  The legislation will also expand research and development, education, and training programs designed to produce a well-qualified cyber security workforce, a highly competitive tech sector, and the continuing superiority of American innovation.

OUT-BUILD

Restore U.S. Manufacturing and Strengthen Infrastructure that is Critical for U.S. Companies to Grow

FAA Modernization Act: Senate Democrats will seek to pass the FAA Reauthorization bill as their first jobs bill of the 112^th Congress.  The comprehensive, bipartisan, job-creating legislation will modernize traffic control, improve air service for rural communities, create new opportunities for small businesses to move their products and remain competitive, and generate up to 280,000 new jobs by investing in America’s aviation infrastructure.  The aviation sector employs 11 million people and generates $1.2 trillion in annual economic activity.

End Off-Shoring of American Jobs and Attract New Ones: Senate Democrats will continue to fight for the passage of legislation that keeps American jobs here and attracts new ones by closing tax loopholes and eliminating counterproductive tax incentives that send good-paying jobs offshore.

Extend and Expand the Successful Build America Bonds Program:  Senate Democrats will work to extend and expand the successful Build America Bonds (BABs) program, which has accounted for more than $180 billion in bond issues in all 50 states.  BABs have lowered the cost of borrowing for municipalities, helped to restore a badly damaged municipal finance market, and supported job creation through new infrastructure projects by delivering a more efficient subsidy than tax-exempt bonds.

Build a 21^st Century Surface Transportation System:  Senate Democrats will seek to enact a Surface Transportation Authorization bill to modernize and reform our current transportation system.  This bill will create and support millions of jobs, accelerate economic recovery, strengthen our global competitiveness, reduce our dangerous dependence on foreign oil and build the foundation for long-term prosperity. It will generate and support millions of high-paying jobs by investing in our nation’s infrastructure, including roads, bridges and transit systems.  Every $1 billion in federal investment in transportation that is matched by state and local funds creates and saves approximately 30,000 American jobs.

Connect America:  Senate Democrats will work to bring high-speed internet to houses, schools and businesses across America, and provide first responders and public safety officials with additional wireless resources to keep America safe.

Double America’s Clean Energy Manufacturing: The Advanced Energy Manufacturing Tax Credit (48C) is a 30 percent credit for domestic companies that build capacity for new clean energy sources, such as wind turbines and solar panels. The program, for which funding was exhausted in 2010, has supported 183 projects in 43 states that have created thousands of high quality clean energy jobs, and has gone a long way to boost domestic manufacturing of solar and wind technologies.  But we lag behind countries like China in clean energy manufacturing, and we must renew the 48C tax credit to stay in the race, as well as extend for one year the start-of-construction deadline for the cash grant in lieu of tax credit program (section 1603). Extension of and improvements to that program are necessary to ensure that all forms of renewable energy continue to be deployed rapidly and at scale.

Build a “Smart” Electric Grid: Senate Democrats will advance critical investments to help build a “smart” electric grid that will save consumers money on their utility bills, reduce blackouts, and carry power supplies generated by wind and solar energy to all corners of the nation.

Boost U.S. Manufacturing of Energy-Efficient Appliances: Senate Democrats will push legislation to create jobs and save consumers money by providing regulatory certainty to the U.S. appliance industry.  The global marketplace for the most energy efficient appliances is increasingly competitive.  Stronger efficiency standards for U.S. appliances will encourage the development of a robust domestic market, and make American-made appliances more marketable abroad. The Implementation of National Consensus Appliance Agreements Act of 2011 (INCAAA), would save consumers more than $43 billion by 2020 and create thousands of new American jobs.  These standards, when combined with the planned Department of Energy standards for 2011 – 2013, would create 42,000 jobs by the year 2020, and 98,000 jobs by 2030.

End China’s Unfair Currency Manipulation: Economists and financial analysts agree that China’s currency is substantially undervalued.  China’s currency manipulation effectively reduces the cost of imports from China and increases the cost of U.S. goods exported to China.  In order to level the playing field and help U.S. businesses compete with China, Senate Democrats will support legislation that would give clear authority to the Administration to respond to China’s undervalued currency – including allowing the U.S. government to impose duties on subsidized imports.  The bill would impose stiff new penalties on designated countries, including tariffs on the countries’ exports, and restrict the ability of companies from those countries to receive U.S. government contracts.

OUT-EDUCATE

Give Students Tools For Success In Competitive Economy and Build a High-Skilled Workforce

Build a Competitive Workforce: Senate Democrats will seek to enact legislation to help more Americans prepare for 21^st century jobs by improving workforce development systems.  Reauthorizing the Workforce Investment Act, which was passed in 1998, would provide states and localities with greater flexibility to meet the changing needs of local economies, workers, job-seekers, and employers.  The changes are designed to ensure that  job seekers have access to training opportunities and skills development that lead to good-paying jobs and opportunities for advancement, while also providing employers with access to the skilled workforce they need to spur economic development. Over the past year, more than 7.2 million Americans entered employment upon completion of these employment and training services. As part of the competitive workforce initiative, Senate Democrats will also advance work share programs to help people keep their jobs and help companies avoid expensive re-hiring and re-training costs.  Mark Zandi with Moody’s Economy.com estimates that for every dollar invested in work share, $1.69 would be added to our economy’s output.

Reform America’s Schools to Educate the Entrepreneurs of the Future: The reauthorization of the Elementary and Secondary Education Act provides Senate Democrats with an important opportunity to fix the No Child Left Behind law.  Senate Democrats will promote changes to help states meet the new goal of all students graduating from high school prepared for college and a career, and help give teachers and school leaders the tools they need to prepare students to succeed in an increasingly competitive economy.

Expand the American Opportunity Tax Credit:  Senate Democrats will expand and make permanent the college tuition tax credit, which gives families up to $2,500 a year in tax credits to help pay tuition and other education expenses for each child in college.  A college degree is the ticket to prosperity for our children in this increasingly competitive economy, but it is priced as a luxury.  Senate Democrats want to make sure every American who wants and deserves to go to college can afford to do so.

For information provided by the White House and the Senate Finance Committee on how each state will benefit from select provisions in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act, please click on an individual fact sheet below.