Tax breaks for Oil companies will remain in place

The Senate Republicans on Thursday blocked a bill that would cut tax breaks worth billions of dollars for the big oil companies (Exxon Mobil Corp, BP Plc, ConocoPhillips, Chevron Corp and Royal Dutch Shell Plc.) in the U.S. The Democratic proponents of the bill feel that these tax breaks which are worth about $24 billion over a 10 year period are unnecessary for an industry that is raking in record profits.

Oil firms have been hugely profitable over the past decade and while consumers do feel the pinch of rising gas prices, the decrease in supply has not seemed to have affected the bottom line of big oil companies. Robert Menendez the Democrat who has sponsored this bill to cut the tax breaks explained his stance on the floor of the Senate by saying that “They took your money and they didn’t produce a drop more of oil,” about the fact that these companies produced less oil in 2011 than they did in 2010.

 

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