BIG BREAKS FOR BIG OIL

Gas prices are skyrocketing and driving up costs of other basic needs such as groceries. But instead of reining in outrageous oil company profi ts, John McCain wants to give them more tax breaks. We call on him to support working families, not tax breaks for Big Oil.Gas prices are skyrocketing and driving up costs of other basic needs such as groceries. But instead of reining in outrageous oil company profi ts, John McCain wants to give them more tax breaks. We call on him to support working families, not tax breaks for Big Oil.

GAS PRICES AND PROFITS SOAR

Oil Companies Report Huge Profi ts While Gas Prices Soar, Fueling Calls for Windfall Profits Tax. BP and Shell reported combined firstquarter profits of $17 billion due to record crude oil prices. ExxonMobil reported $10.89 billion in profits, Chevron reported a net income of $5.17 billion and ConocoPhillips reported $4 billion in profits. The huge profits fueled critics’ calls for a windfall profits tax on oil companies as working families struggle to pay rising fuel costs. (Associated Press, 4/29/08; BizJournals.com, 5/2/08; Wall Street Journal, 5/2/08)

Crude Oil Prices Pass $120 Per Barrel; Gas Prices Jump 22 Percent. Since the beginning of the year, crude oil has reached a staggering, record-breaking price of $119 per barrel, which caused gas prices to increase by 22 percent. The average price of a gallon of gas is approaching $4. (Associated Press, 4/29/08; The Washington Post, 5/1/08)
Grocery Prices Jump, Too. Over the past year, the cost of milk increased 13.3 percent, the cost of bread increased by 14.7 percent and the cost of eggs rose by 29.9 percent. (U.S. Department of Labor, CPI Detailed Report, March 2008)

AND McCAIN WANTS TO GIVE OIL COMPANIES MORE BREAKS

McCain Plan Offers $3.8 Billion in Tax Cuts to Oil Companies. McCain’s current plan would deliver $3.8 billion in tax cuts to the five largest Amer ican oil companies. (“The McCain Plan to Cut Oil Company Taxes by Nearly $4 Billion,” Center for American Progress Action Fund, 3/27/08)

McCain Missed Vote Repealing Tax Breaks for Oil Companies. In 2007, McCain was the only senator to miss a vote on the energy bill repealing tax subsidies for oil companies. (H.R. 6, Vote #425, 12/13/07)

McCain Voted Against a Windfall Profits Tax for Oil Companies and a Tax Rebate for Working Families. In 2005, McCain voted against imposing a temporary windfall profits tax on oil companies and using the proceeds to provide nonrefundable tax credits to working families. (S.Amdt. 2635, Vote# 341, 11/17/05; S.Amdt. 2587, Vote #331, 11/17/05)

McCain Supported Tax Breaks for Oil and Natural Gas Companies. Earlier, McCain opposed eliminating tax breaks for oil and natural gas companies related to depletion and drilling costs. (S.Amdt. 2782/HR. 776, Vote #159, 7/29/92)