Senate GOP backs off $100 gas rebate proposal

[bishop]

article

WASHINGTON (AP) -- Senate Majority Leader Bill Frist, under pressure from business leaders, retreated Monday from a plan that would have used a tax increase on oil companies and other businesses to pay for a $100 gasoline rebate for millions of motorists. Frist had proposed an accounting change that would have required oil companies to pay more taxes on their inventory of crude as a way to pay the one-time rebate that GOP leaders rolled out last week as they scrambled to find ways to ease public anger over soaring gasoline prices. In a statement, Frist said he will still push the rebate, but abandoned the accounting change and said the Senate Finance Committee planned a hearing on the issue in the near future. Frist gave no indication how the rebate, estimated to cost about $10 billion, will be paid for, although he said he still planned to "find a way to bring our proposals to the Senate floor for a vote." The rebate proposal, meanwhile, seemed to have little appeal among motorists who would benefit. Aids to several Republican senators, including some who support the proposal, said Monday they have received generally negative feedback from the public in telephone calls and e-mails. "There are some who say this is a Band-Aid and they want a real solution. .... There are people who say, 'Do you think I can be satisfied so easily,"' said Don Steward, an aide to Sen. John Cornyn, a Texas Republican. He said almost all comments received about the rebate -- which Cornyn has characterized as "a theatrical response" -- have been negative. Another Senate staffer, who spoke on condition of anonymity because the senator was among those who have been pushing the GOP energy package, said voters know that with gas costing more than $3 a gallon the rebate likely will pay for only a couple of tanks of gas. "It's probably one fill-up for a Sequoia," added the aide, referring to a Toyota sport utility vehicle that gets 15 miles to the gallon in city driving. Frist defends rebate proposal But Frist said the rebate "will help people who are emptying their wallets at the pump. ... We've got to help those who are feeling pain ... as quickly as possible." Single taxpayers earning up to $145,950 and married couples earning up to $218,950 would get the rebate in August under the Frist proposal. The Energy Department reported Monday that the average cost of regular grade gasoline nationwide had increased to $2.92 a gallon with many parts of the country showing prices at more than $3 a gallon. The tax accounting change involving inventories was the most substantial tax hit Congress has considered seriously in response to the huge oil industry profits at the time of soaring costs at the pump. The change, applying only to five of the largest oil companies, had been approved by the Senate but faced strong opposition in the House. Oil companies waged an intense lobbying effort to block the change. Rex Tillerson, chairman of Exxon Mobil Corp., at an energy conference Monday, called it "nothing more than a backdoor windfall profits tax" and a "very dangerous and very poorly thought-out step to take." The change was estimated to increase taxes for the five major oil companies by $4.3 billion over five years. Frist would have expanded the tax to other industries, which prompted a chorus of protests, prompting his retreat from the proposal. The National Association of Manufacturers and Wal-Mart Stores Inc., among others, made known their strong opposition to the inventory taxing change. Democrats proposal tax holiday Senate Republicans said the rebate is an attempt to counter the Democrats' push for a suspension of the 18.4-cent a gallon gasoline tax for 60 days. A gasoline tax "holiday" has been proposed by Sen. Bob Menendez, a Democrat, and embraced by Democratic Party leaders as a short-term response to counter the sudden run-up of gas prices. While one GOP senator, John Thune of South Dakota, introduced his own tax holiday bill, most Republicans opposed the idea. They argue there's no assurance the tax break, collected from refiners, would be passed on to consumers at the pump. If the lost revenue from a tax suspension -- estimated at $6 billion -- is made up by imposing additional taxes on oil companies, as Democrats envision, there would be incentive for companies not to pass the savings on to retailers, critics of the plan said.

interesting that the democrats are the ones proposing a tax holiday here...

[Rainbow]

$100.00 rebate for gas ? :-)

Appx. 75% oil goes for transportation, in U.S.
Either we switch for non-gasoline driven vehicles, or start building new technologicaly advanced refineries, in order to lower prices for gasoline.

[Technosoul]

A good deal of the total price paid at the pump is for taxes imposed by our government, which makes the oil company a tax collection organization (Like the IRS) which also costs them money to keep track of. Removing the laws that force gas companies to cease being tax collectors would automactically bring down the cost per gal at the pump by a rather large percentage.

However, if we removed the tax then that would not prevent the oil people from raising their price down the line, so soon they would have the rate back up to where it now stands and all the money would end up in their pockets instead of being used for road repairs via taxes. They will raise the price until we stop buying the gasoline, then they will edge it back down to reclaim their market. Taxes or no taxes being figured into the cost.

(that was my opinion based on rather predictable patterns of current behavior).

Gas is just like prescription drugs, cigarettes, and other things we believe we cannot live without. We will pay any price if we believe or know we need the stuff. And we will cut back on other things we think we can do without, buying cheaper food to eat, etc.

The low income a the bottom half of our so-called middle class is hit from all sides of late, a rise in medicene, higher prices for rent or for buying a house, higher prices for gas, and more for other things - like CD music and even some food products. Gas seems to the the "last straw" on the camels back, and so it is getting the most attention. Trying to make a paycheck last til the next payday, nearly impossible for a vast number of people. It reminds me of the time when I was young and stupid and went down to TJ with the guys - we walked into a bar and 20 girls rushed us and had their hands in every pocket of our pants and jackets. Ever get rushed by 20 pickpockets at once, lawdy have mercy. That is what it is like nowadays when it comes to the cost of living.

The tow truck companies have reported that they had to start towing people off the freeways at three cars per hour, all of then from running out of gas. People are driving around on fumes and a prayer, hoping to make to that one gas station where gas is a few cents cheaper then at the other stations.

I guess we cannot call it a war between the haves and have nots, but it sure seems that way, and the have nots are having a lot less. How long the public will put up with it is anyone's guess, but tempers could crack wide open at any time, especially when it gets really hot in the summer, so beware.

[brien]

Quote by: Technosoul A good deal of the total price paid at the pump is for taxes imposed by our government, which makes the oil company a tax collection organization (Like the IRS) which also costs them money to keep track of. Removing the laws that force gas companies to cease being tax collectors would automactically bring down the cost per gal at the pump by a rather large percentage. However, if we removed the tax then that would not prevent the oil people from raising their price down the line, so soon they would have the rate back up to where it now stands and all the money would end up in their pockets instead of being used for road repairs via taxes. They will raise the price until we stop buying the gasoline, then they will edge it back down to reclaim their market. Taxes or no taxes being figured into the cost. (that was my opinion based on rather predictable patterns of current behavior). Gas is just like prescription drugs, cigarettes, and other things we believe we cannot live without. We will pay any price if we believe or know we need the stuff. And we will cut back on other things we think we can do without, buying cheaper food to eat, etc. The low income a the bottom half of our so-called middle class is hit from all sides of late, a rise in medicene, higher prices for rent or for buying a house, higher prices for gas, and more for other things - like CD music and even some food products. Gas seems to the the "last straw" on the camels back, and so it is getting the most attention. Trying to make a paycheck last til the next payday, nearly impossible for a vast number of people. It reminds me of the time when I was young and stupid and went down to TJ with the guys - we walked into a bar and 20 girls rushed us and had their hands in every pocket of our pants and jackets. Ever get rushed by 20 pickpockets at once, lawdy have mercy. That is what it is like nowadays when it comes to the cost of living. The tow truck companies have reported that they had to start towing people off the freeways at three cars per hour, all of then from running out of gas. People are driving around on fumes and a prayer, hoping to make to that one gas station where gas is a few cents cheaper then at the other stations. I guess we cannot call it a war between the haves and have nots, but it sure seems that way, and the have nots are having a lot less. How long the public will put up with it is anyone's guess, but tempers could crack wide open at any time, especially when it gets really hot in the summer, so beware.

Tech: POI Oil companies are not the tax collectors for the government. It is the small business man at the retail level.

As for the price of gas rising back up after tax elimination, it may or may not be true depending upon the other factors that affect the rise of gasoline prices. Global stabiilty, Mideast turmoil, growing demand by China, oil speculation in commodity market etc, etc. The price of gasoline could easily go down after tax elimination if those in the commodities market who are long sold their contracts and took their profits. The price of gasoline would fall because the supply would increase.

Keep in mind also that some states charge a sales tax over and above the fuel tax charged at the pump as well.

In any event, the US could eliminate charging tax at the point of use. There are any number of ways to recover the tax. It could be charged as a ton mile tax based upon weight of the vehicle / miles travelled as in commercial trucking. It could also be based upon consumption at the time of the vehicle registration and renewal based upon mileage driven and distributed through the state government to the national government. Tolls could be established to route the use tax directly to the roads used thereby eliminating the greedy politican's hands in the till to redirect the tax to favorite pork projects. This all would eliminate the retailer acting as the tax collector as well.

This is not class warfare and to attempt to couch it as such is a mistake. Who are the "haves"? Who are the "have nots"? What say you to people who can least afford it smoke cigarettes at $5 per pack when they can buy their children a better pair of shoes with that $35 per week habit? That $140 per month could be a car payment that could buy them a car that gets better fuel mileage to carry them to a job that pays more money.
And on and on

Your class warfare allusion is a slippery slope and one that has nothing to do with gasoline prices.

[underbear1]

Santorum and Frist...........TARDS!
Insulting Americans with a $100.00 bribe for their votes, just for that they should be shit-canned, funny how the SAME asses who couldn't wait to stick their damn noses in Terri Schaivo's end of life decision, and blame queers for every problem in the country.

[brien]

Quote by: underbear1 Santorum and Frist...........TARDS! Insulting Americans with a $100.00 bribe for their votes, just for that they should be shit-canned, funny how the SAME asses who couldn't wait to stick their damn noses in Terri Schaivo's end of life decision, and blame queers for every problem in the country.

Frist is a panderer for sure but just what did the Dems offer America? From Sen H Reid's own website:


DEMOCRATS FIGHT TO EASE RIPPLE EFFECT OF HIGH GAS PRICES
Wednesday, May 3, 2006


Washington, DC — Assistant Democratic Leader Dick Durbin and Democratic Senators Max Baucus, Kent Conrad, Byron Dorgan, Barbara Boxer, and Tim Johnson today visited the open-air market in Eastern Market, Washington, DC, to discuss the ripple effect of high gas prices, and Democratic policies that will ease prices today and put America on a path toward energy independence. Joined by Tom Buis, President of the National Farmers Union, Bill Glasgow, the owner of the Union Meat Company at Eastern Market, farmers, and small business owners, they called on Republicans to join Democrats in passing legislation that will help the American people right now,

Gas prices are punishing Americans across the country, but the pain they cause is not limited to the gas station. The effects ripple across the nation, on a path from farms, to small businesses, to kitchen tables all across America. With so many struggling to make ends meet, it is long past time for Bush Republicans to put aside the energy policies that the Bush-Cheney White House let Big Oil write and stand up for the American people.

“Illinois farmers have expressed real concern when every dollar they earn from their land is eaten up by the rising cost of fuel and fertilizer,” said Senator Durbin (D-IL). “When energy prices cut deep into the profits of family farmers, it threatens their survival. The Republican leadership in Congress has proposed a $100 rebate to help Americans through this energy crisis. I respect Illinois farm families too much to suggest this is a serious response to a real crisis.”

“Agriculture is the backbone of our country,” said Senator Baucus (D-MT). “We have the safest, most affordable food supply in the world and agriculture plays an important role in our economy as well. Rising fuels prices shouldn’t cause family farms to go up in smoke. I’m committed to working together with my Senate colleagues to get our producers some long-overdue and much-needed assistance.”


"Our nation's dependence on foreign sources of energy poses an unacceptable risk to both our economic and national security. Importing 60 percent of the oil we consume from some of the most dangerous parts of the world is a simply unsustainable course," Senator Conrad (D-ND) said. "Fortunately, there is a way we can forge our nation's energy independence. I have introduced a comprehensive energy initiative that, if adopted, would unlock our nation's resources and break the foreign stranglehold on our energy supplies. I call it the BOLD Energy Act, for Breaking Our Long-term Dependence. With the BOLD Energy Act, we can find our future energy in the Mid West, instead of the Mid East."


“Family farmers are intensive users of energy, but have no way to pass on rapidly escalating energy costs to anyone else, something most other business operations are able to do,” Senator Dorgan (D-ND) said. “As a result, today’s fuel and fertilizer prices are more than just painful for many family farmers. They are devastating. That’s why I included help paying for energy for farmers in the agricultural disaster assistance package I included in the Supplemental Appropriations bill now on the Senate floor. Yet the President threatens to veto the bill if it includes even one dollar of disaster aid for America’s family farmers. I think we’ve got another Katrina like situation developing in rural America. Once again, I don’t think the President really knows or understands what is going on.”


"California is the largest agriculture producing state in the country, and right now our farmers and growers are feeling the burden of high gas and fertilizer prices," Senator Boxer (D-CA) said. "There are steps we can take right now to provide some relief– the President could release some of the Strategic Petroleum Reserve, order that new cars purchased for the federal fleet be more fuel efficient, and go after these oil companies that have been raking in profits."


“High energy prices increase the cost of producing food,” said Senator Johnson (D-SD). “This ripple effect moves from our farms and ranches to our grocery store shelves. High gas prices affect more than just the cars in our driveway. This spring producers will pay more for fertilizer, and during the fall harvest, our farmers and ranchers will face higher costs to move their products to market. We must find a way to address high gas prices before it takes a hit on our entire economy.”

After five years of policies that have put the profits of oil companies ahead of the energy future of the American people, it’s time for a new direction. Democrats believe America can do better, and have real, comprehensive policies to ease the price of gas, to investigate and punish price gouging, and to put America on a path toward energy independence. Millions are struggling with these higher costs today, and it is long past time Washington put the American people ahead of the oil companies.


A MOUTHFUL OF POLITICAL DOUBLESPEAK THAT SAYS "I, WE" AND MEANINGLESS RHETORIC BLAMING EVERYONE IN SIGHT BUT THEMSELVES! :rolleyes:

[underbear1]

BOTH Houses of Congress and the White House are Republican controlled, this is their problem, not the opposition Party, the fact Bush and Cheney are thick as thieves with every U.S. oil barron, and smooch all over the Saudi royals..........is just a coincidence.

[brien]

Quote by: underbear1 BOTH Houses of Congress and the White House are Republican controlled, this is their problem, not the opposition Party, the fact Bush and Cheney are thick as thieves with every U.S. oil barron, and smooch all over the Saudi royals..........is just a coincidence.

Besides ignoring the pandering pablum I posted from Reid's own website, you seem to live Ostrichland. You write like this all happened overnight, or at least in the last six years. I might remind you of the first oil shocks in the early 1970's, unless you are too young to remember waiting in "gas lines" on odd and even days for gasoline. Do you even know what odd and even stood for? Both Parties are responsible for the boat Americans are in today. Deny it all you want, but the Republicans haven't been in power for 33 years.

This is a problem that can be laid directly upon the doorstep of bipartisian government inaction since the oil shortages that began in October of 1973. The recent ridiculous suggestions from both sides of the aisle only mirror their lame inaction for the last 33 years as well. Take off you myopic democratic blinders, pull you head out of the partisian sand, and open your eyes to the reality of history. This didn't happen overnight and the solutions won't correct the problem overnight either. Strap yourself in for a bumpy ride and $100 barrels of oil.

[underbear1]

Skyrocketing oil prices will do to republicans in Congress, what they did to Carter.

bye, buh bye, bye

[brien]

Quote by: underbear1 Skyrocketing oil prices will do to republicans in Congress, what they did to Carter. bye, buh bye, bye

Jimmy Carter actually "de-regulated" the oil industry which probably led to the consolidation of the oil companies lessening competition. But $100 barrels of oil will probably sink any party in power.