Senate Dems to Biden: Deficit deal with GOP must kill oil industry tax breaks

Twenty Senate Democrats are ramping up political pressure on the White House to ensure that any deficit-reduction deal with Republicans strips billions of dollars in tax breaks for major oil companies.

The group — led by Sen. Robert MenendezRobert MenendezTaiwan and ICAO: this is the time Rubio warns of terror attack from Cuba flights Politicians shouldn’t be above the law, Trump and Clinton included MORE (D-N.J.) — sent a new letter outlining their stance to Vice President Biden, who is leading talks with Republicans on reaching a deficit-cutting deal needed to secure votes to raise the nation’s debt ceiling.

“The American people are demanding to know why they are forced to hand over taxpayer dollars to help oil executives enrich themselves when they're already paying $4.00 for a gallon of gasoline,” the letter circulated Tuesday states.

The letter states that cutting industry tax breaks “must be part of any agreement you reach to raise the debt ceiling and lower the deficit.”

In mid-May the Senate blocked a Democratic bill to repeal $21 billion in tax breaks and apply the savings to deficit reduction. The 52-48 vote was eight shy of the 60 votes needed to advance a bill that would nix incentives for ExxonMobil, Shell, ConocoPhillips, Chevron and BP.

But the letter argues that the May 17 vote — in which two Republicans joined Democrats — makes the case for insisting on the provision in the negotiations.

It states:

As you work to forge an agreement between the parties to reduce the deficit, we urge you to ensure that this agreement include an end to the billions of dollars in subsidies that oil companies receive. As you know, a bipartisan majority of the Senate voted for legislation to close these loopholes for the Big 5 oil companies, and this mandate cannot be ignored. We all need to make sacrifices to lower the deficit, including the most wealthy and powerful among us.

Menendez had said last week that new outreach to Biden was in the offing.

The White House supports repeal of oil industry tax breaks. Menendez said Tuesday that the new letter does not signal fear that the White House won’t stand firm in the budget talks.

“The letter is not a response to a concern. It is a reaffirmation of the bipartisan Senate vote as well as the administration’s own position,” he said on a conference call with reporters on Tuesday.

Signers include Bernie SandersBernie SandersSanders discourages third-party votes: 'Not the time for a protest vote' Trump: Sanders supporters 'like Trump on trade, a lot' Sunday shows preview: Both sides gear up for debate MORE (I-Vt.), Barbara MikulskiBarbara MikulskiBlack Caucus demands Flint funding from GOP GOP puts shutdown squeeze play on Dems Overnight Finance: McConnell offers 'clean' funding bill | Dems pan proposal | Flint aid, internet measure not included | More heat for Wells Fargo | New concerns on investor visas MORE (D-Md.), Patrick LeahyPatrick LeahyOvernight Finance: McConnell offers 'clean' funding bill | Dems pan proposal | Flint aid, internet measure not included | More heat for Wells Fargo | New concerns on investor visas Dem senator won't back spending bill without visa reforms Top GOP chairmen investigating foreign visa program MORE (D-Vt.), Barbara BoxerBarbara BoxerSenators seek to boost women in international forces Overnight Energy: Senate approves Flint aid | Union chief backs Dakota pipeline White House proxy fight breaks out on Senate floor MORE (D-Calif.) and others.

Names on the list includes some of the members who are politically vulnerable in next year’s elections, including Sens. Claire McCaskillClaire McCaskillFacebook steps up fight against fake news The Trail 2016: Off the sick bed McCaskill: Trump and Dr. Oz a 'marriage made in heaven' MORE (D-Mo.) and Sherrod BrownSherrod BrownLawmakers play catch-up as smartphone banking surges Overnight Finance: McConnell offers 'clean' funding bill | Dems pan proposal | Flint aid, internet measure not included | More heat for Wells Fargo | New concerns on investor visas House votes to eliminate Olympic medal tax MORE (D-Ohio.).

Senate Majority Leader Harry ReidHarry ReidBlack Caucus demands Flint funding from GOP Report: Intelligence officials probing Trump adviser's ties to Russia White House preps agencies for possible shutdown MORE (D-Nev.) and Sen. Charles SchumerCharles SchumerSaudis hire lobbyists amid 9/11 fight Consumer bureau remains partisan target after Wells Fargo settlement Overnight Healthcare: Planned Parenthood deal in sight in Senate | A new 'public option' push MORE (N.Y.) — a top strategist for Senate Democrats — have also called for repealing the tax breaks as part of a wider deficit deal, but those two and other members of the Democratic leadership team did not sign this letter.

The letter highlights a looming collision with the Republicans, who generally oppose stripping the tax breaks. Senate Minority Leader Mitch McConnellMitch McConnellTrump slams Obama for ‘shameful’ 9/11 bill veto GOP chairman lobbies against overriding Obama on 9/11 bill Black Caucus demands Flint funding from GOP MORE (R-Ky.) said this month Republicans won’t put them on the table in the Biden-led talks.

“That's not the kind of thing we're going to be dealing with here in connection with the serious talks that are going on with the Vice President's group,” McConnell said on CNN’s “State of the Union” on May 15.

But Menendez said Tuesday that Republicans cannot “dictate” what’s in play in the negotiations.

Some Democrats, however, also oppose the effort. Three Senate Democrats — Mary LandrieuMary LandrieuLouisiana needs Caroline Fayard as its new senator La. Senate contender books seven-figure ad buy Crowded field muddies polling in Louisiana Senate race MORE (La.), Ben Nelson (Neb.) and Mark BegichMark BegichRyan's victory trumps justice reform opponents There is great responsibility being in the minority Senate GOP deeply concerned over Trump effect MORE (Alaska) — opposed the Democratic oil tax break repeal plan on the Senate floor.

Here is the whole letter to Biden:

The Honorable Joe BidenJoe BidenThe FCC’s Privacy Problem Strong, committed leadership needed to destroy ISIS Medical cures bill pushed back to lame-duck MORE
Vice President
The White House
1600 Pennsylvania Avenue
Washington, DC 20501
 
Dear Vice President Biden,
 
            As you work to forge an agreement between the parties to reduce the deficit, we urge you to ensure that this agreement include an end to the billions of dollars in subsidies that oil companies receive. As you know, a bipartisan majority of the Senate voted for legislation to close these loopholes for the Big 5 oil companies, and this mandate cannot be ignored. We all need to make sacrifices to lower the deficit, including the most wealthy and powerful among us.
 
Over the last decade, the Big 5 oil companies have raked in nearly $1 trillion in profits and tens of billions of dollars in taxpayer subsidies. Since 2005, these companies have spent over seven times more on stock buy backs and dividends than they have on oil exploration or efforts to reduce gasoline prices. The American people are demanding to know why they are forced to hand over taxpayer dollars to help oil executives enrich themselves when they're already paying $4.00 for a gallon of gasoline.
 
At the same time, working class families and seniors have had a difficult time making ends meet. Many have seen their homes foreclosed, have seen their jobs downsized, and face daunting prospects for getting back on their feet. But so far, these same people are the only ones who have been asked to sacrifice to lower the deficit by accepting substantial cuts to social programs in the Continuing Resolution.
 
Now, the budget resolution that has passed the Republican-controlled House of Representatives is asking for many more sacrifices of working class families and seniors. This legislation would end Medicare as we know it, further cut nutrition programs, and cut education programs by nearly 20%.
 
It is time for oil companies to give up the billions in taxpayer subsidies.  Despite the oil companies' expensive disinformation campaign, we know from analyses by the non-partisan Congressional Research Service and the Joint Economic Committee that cutting subsidies will not raise gas prices. What cutting these subsidies will do is help lower the deficit and make a miniscule dent in these companies' enormous profits.
 
That is why a majority of the Senate has embraced cutting oil subsidies as a way to lower the deficit, and it is also why we believe it must be part of any agreement you reach to raise the debt ceiling and lower the deficit. It also appears that House Leadership may be willing to accept such cuts as Speaker BoehnerJohn BoehnerRepublican Study Committee elders back Harris for chairman Dems to GOP: Help us fix ObamaCare The disorderly order of presidential succession MORE recently said oil companies "ought to be paying their fair share" and Budget Chairman Ryan has publicly endorsed cutting oil subsidies.
 
Thank you for your tremendous work to help the country deal with its mounting debt. We hope we can all work together, including oil companies, to lower the deficit in an effective and equitable fashion.
           
 
                        Sincerely,
 
 
Menendez

Mikulski
Leahy
Sanders
Shaheen
Franken
Brown (OH)
Reed
Stabenow
Gillibrand
Merkley
Rockefeller
Wyden
Blumenthal
Whitehouse
Lautenberg
Casey
T. Udall
Boxer
McCaskill