Reid 'confident' debt agreement will include repeal of oil tax break

Senate Majority Leader Harry ReidHarry ReidHopes rise for law to expand access to experimental drugs If Gorsuch pick leads to 'crisis,' Dems should look in mirror first Senate confirms Mulvaney to be Trump’s budget chief MORE (D-Nev.) said Tuesday he expects a final agreement on the debt ceiling will include repeal of tax breaks for major oil companies.

“I am confident that before we finish our budget negotiations here in anticipation of raising the debt ceiling that that will be part of it,” Reid told reporters in the Capitol.

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“I am confident that the final budget negotiations — that will be in there,” he said.

The Senate is slated to vote Tuesday evening on a Democratic plan to repeal an estimated $21 billion over a decade in incentives for the largest oil companies.

The measure is expected to fall short. But senior Democrats are increasingly signaling that industry subsidies must be on the table in broader deficit talks between Capitol Hill Democrats, Republicans and the White House.

The talks are unfolding ahead of a high-stakes vote expected this summer to raise the debt ceiling. The timing of a vote to raise the ceiling is unclear, but is expected this summer before Aug. 2, when the Treasury Department has warned it will no longer be able to meet all its financial obligations.

Sen. Robert MenendezRobert MenendezSteve Mnuchin, foreclosure king, now runs your US Treasury Senate Dems move to nix Trump's deportation order Senators to Trump: We support additional Iran sanctions MORE (D-N.J.) said late last week that Democrats will “insist” on addressing the oil tax issue in broader budget talks. And Sen. Charles SchumerCharles SchumerEllison holds edge in DNC race survey Overnight Cybersecurity: Trump defends Flynn, blasts leaks | Yahoo fears further breach Overnight Finance: Trump's Labor pick withdraws | Ryan tries to save tax plan | Trump pushes tax reform with retailers MORE (N.Y.), a member of the Democratic leadership team, said Menendez’s view is widely held in the caucus.

Schumer said Tuesday that there is a “pretty broad consensus” among Senate Democrats. “Our proposal for deficit reduction will include elimination of these subsidies,” he said.