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Dems' Oil Subsidy Bill is Unconstitutional

May 17, 2011 - by Donny Shaw

Senate Republicans may be using a faulty argument about gas prices going up if we end oil subsidies as an excuse for protecting some of their biggest corporate donors, but Democrats don’t seem to be taking the issue much more seriously. By bringing up a bill to end subsidies and effectively increase the corporate tax rate on U.S. oil companies, they’re only setting up a campaign talking point, not doing actual policy work. The bill is flat-out unconstitutional, and they know it.


Republicans may have a point that Democrats are playing politics with oil subsidies. To understand why, look no further than the fact that the bill Senate Majority Leader Harry Reid will bring to the floor for a vote Tuesday evening doesn’t pass basic constitutional muster.

“The question is if the bill passes the Senate, it will run into a blue-slip problem,” Reid said at his weekly Capitol press conference. Blue slipping is the process the House uses to reject Senate bills that impact tax and spending.

Reid joked, “That’s the least of my worries.”

He and most of the Dem caucus couldn’t be happier that their Republican counterparts are circling their wagons around big oil companies to protect their multi-billion dollar annual tax subsidies. And they’ll have great fodder for attack ads starting Tuesday night, when a Senate bill that would rescind those subsidies is expected to fail along party lines.

Article 1, Section 7 of the U.S. Constitution: “All bills for raising Revenue shall originate in the House of Representatives.”

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