I was at home in Nevada while Congress was in recess last week. Driving around meeting with constituents, I saw firsthand that gas prices were once again shooting up to unprecedented levels of more than $3 a gallon. These high prices are unacceptable, and they are a direct result of the failures of George Bush, Republicans in Congress and their buddies at the big oil and gas companies.
Today, Democrats proposed an amendment to provide immediate relief to consumers. The amendment introduced by Senator Menendez will provide more than $6 billion in relief directly to the American people by eliminating the federal tax for both gas and diesel for 60 days. During the period of this gas tax holiday, the cost of gas will be reduced by $0.184 per gallon and the cost of diesel by $0.244 per gallon. We will pay for this tax cut by eliminating tax breaks and giveaways to big oil.
Senate Democrats need your help to show public support for this amendment. Show your support for the Menendez Amendment by becoming a citizen cosponsor today.
Become a citizen cosponsor today.
It was George Bush who promised during his first campaign that he would “jawbone” his family friends, the Saudis, into lowering oil prices. Yet every summer the price gets higher and higher. Why is your family paying more at the pump? The Foundation for Taxpayer and Consumer Rights released a report last week concluding that in California, “corporate markups and profiteering are responsible for spring price spikes, not rising crude costs . . . as the oil industry claims.”
Democrats want to address the problem directly, and our amendment will provide immediate relief to consumers. Senator Frist and Republican leadership believe there is no political price to pay for being in bed with big oil. Lets show them the truth. Fifty thousand of you signing up, as “Citizen Cosponsors” of this legislation would make a huge difference.
Become a citizen cosponsor of the Menendez Amendment today.
High gas prices hurt everyone. They lead to increased costs for food and place a heavy burden on those who commute to work. I receive hundreds of letters every week from Americans whose budgets are being stretched thin by skyrocketing prices. Gas is not a luxury for families—it is a necessity.
The fact is the big oil companies control the supply and know that families really have little choice in the matter – they literally have consumers over a barrel. While we are paying record prices, the oil companies are reaping record profits.
About the Menendez Amendment
The amendment will provide more than $6 billion in relief directly to consumers by eliminating the federal tax for both gas and diesel for 60 days. During the period of this gas tax holiday, the cost of gas will be reduced by $0.184 per gallon and the cost of diesel by $0.244 per gallon. Drivers will receive real relief every time they go to the pump during this period.
Protects the Highway Trust Fund. Under this amendment, the Highway Trust Fund will not lose one dime. Funds generated by reducing the tax breaks and giveaways to Big Oil will be transferred to the Highway Trust Fund in an amount equal to the revenues lost through the federal tax holiday. The Highway trust fund will continue to collect the revenues needed to continue all of the projects currently planned and funded.
Big Oil Will Pay the Price. After reporting record profits of over $100 billion last year, Big Oil is the most profitable business in the world. This amendment will provide direct relief to consumers and be fully paid for by repealing three major tax breaks that Big Oil clearly does not need and eliminating unnecessary and expensive royalty relief.
� Foreign Oil & Gas Foreign Tax Credit and Income. Under present law, US companies can claim a foreign tax credit for taxes paid to another country and not royalties and similar payments related to an economic benefit. The provision denies foreign tax credits for payments to a foreign country if the foreign country does not have a generally applicable income tax.
� LIFO � Oil & Gas. Under current law, businesses are generally permitted to use a last-in, first-out (LIFO) method to account for their inventories. This allows companies to create a tax advantage during times of rising prices. This proposal limits the tax benefits of this LIFO method of accounting for integrated oil companies with gross receipts in excess of $1 billion.
� Elimination of Amortization of Geological and Geophysical Expenditures for Large Oil & Gas Companies. Eliminates the tax break for accelerated depreciation for these expenditures for fully integrated oil companies that was passed in the Energy Bill.
� Eliminates Royalty Relief and other Direct Spending. The amendment also eliminates royalty relief and other direct spending for oil and gas production incentives in Titles III and IX of the Energy Policy Act of 2005 totaling approximately $700 million. In testimony before the Senate Judiciary Committee, the major oil company CEOs testified that they did not need these incentives.