House measure targets tax breaks for Big Oil

WASHINGTON -- The House approved a bill last week to rescind $18 billion in tax breaks to the five largest domestic oil producers and spend most of that to boost energy efficiency and renewable energy ventures.

The measure would collect $1.8 billion per year over 10 years from the oil firms. At the same time, it extended tax credits for producers of energy through the use of geothermal, wind, solar, biomass and hydropower sources.

It also contained financial incentives toward the purchase of energy efficient cars and household appliances.

The 236-182 vote fell along party lines. All but eight Democrats voted for the bill, along with 17 Republicans. Most Republicans voted against it.

Bill supporters argued the tax credits would provide long-term stability for renewable energy ventures. They also said the oil companies affected by the bill -- Exxon Mobil, Chevron, ConocoPhillips, BP and Royal Dutch Shell -- posted $123 billion in profits last year and could easily absorb the $18 billion in taxes over 10 years.

Critics said increasing the tax burden on the oil companies would result in rising prices at gasoline pumps and cost increases for other products that incorporate petroleum.

Rep. Shelley Berkley, D-Nev., voted for the bill. Reps. Dean Heller and Jon Porter, both R-Nev., voted against it.

Republicans said they would continue to fight against the bill in the Senate, where similar measures have failed to pass. White House advisers said they would recommend President Bush veto the bill if it reaches his desk.

INDIAN HEALTH BILL PASSES

The Senate passed the first major overhaul of the American Indian health care system since 1992 in a bill that was approved 83-10.

The measure authorized $35 billion in spending over 10 years for the 1.8 million beneficiaries of government-funded Indian health efforts including construction of new facilities.

It also aimed to give tribal members better access to Medicare and Medicaid.

Sen. Tom Coburn, R-Okla., criticized the bill, saying it still was inadequate to fix many problems in the American Indian health care system.

Sens. Harry Reid, D-Nev., and John Ensign, R-Nev., voted for the bill.

The White House had several concerns with the bill as well, one of which was addressed in an amendment by Sen. David Vitter, R-La.

The Vitter amendment, which passed 52-42, excluded federal funding for abortions in Indian health clinics except in the case of rape or incest.

Abortions through other federally funded programs such as Medicaid already are restricted by the Hyde Amendment, a measure passed by Congress in 1976.

Reid and Ensign voted for the Vitter amendment.

IRAQ DEBATED ANEW

The Senate renewed debate on Iraq with Democrats and Republicans offering competing versions of how the war is going.

Democrats proposed to bring up a bill by Sen. Russ Feingold, D-Wis., that would cut off funding for combat deployments 120 days after enactment.

Democratic leaders expected Republicans to block debate as they had on most earlier initiatives that sought to change the course of U.S. involvement in Iraq.

But this time Republicans took the Democrats up on the offer, joining in a 70-24 vote to open debate on the bill. Then they delivered speeches touting the evident success of President Bush's troop "surge" that has been credited with reducing violence in Iraq.

Democrats argued that despite military advances, prospects for ultimate success in Iraq remained slim.

Reid and Ensign voted to debate the Feingold bill.

After a day of speeches, the bill was withdrawn without a final vote.

MORTGAGE AID BILL BLOCKED

Republicans objected to moving forward with a bill that offered several strategies to boost the flagging housing industry and help families facing mortgage foreclosures.

The bill would provide $4 billion for communities to buy and rehabilitate foreclosed homes. It also would require lenders to disclose more information on subprime mortgage loans.

One controversial provision would allow judges to adjust terms of troubled mortgages in bankruptcy proceedings.

Democrats characterized the bill as an economic stimulus that would help more than 600,000 mortgage holders escape foreclosure.

President Bush threatened to veto the bill, and most Republican senators opposed it.

Senators voted 48-46 to move forward with the bill, but that was short of the 60 votes that were needed.

Ensign voted against the bill. Reid supported the bill and voted for it, but switched his vote in a procedural move that would allow him to bring it up again later.