WASHINGTON — Linking two of the politically volatile issues of the moment, U.S. Senate Democrats say they will move forward this week with a plan that would eliminate tax breaks for big oil companies and divert the savings to reduce the deficit.
With high gas prices and rising deficits in the spotlight, senior Democrats think that tying the two issues together will put pressure on Senate Republicans to support the measure or face a difficult time explaining their opposition to voters whose family budgets are being strained by fuel prices.
President Barack Obama and some top congressional Democrats have said they want to take some of an estimated $21 billion in savings from closing the loopholes and steer it to clean energy projects. But the Senate’s Democratic leadership is calculating that using it to cut the deficit instead makes it a tougher issue politically for Republicans who are trying to burnish their conservative fiscal credentials.
