Senate Republicans killed a measure Tuesday backed by Democrats that would have would increased windfall-profit taxes on oil companies, Bloomberg reported.
Democrats fell nine votes short of the 60 needed to proceed to debate. The White House had threatened to veto the measure, Bloomberg said.
The bill would “undercut U.S. energy security and decrease U.S. energy production, thus exacerbating market tightness and increasing energy prices,” the White House said in a statement.
The proposal, first announced in May, would have imposed a windfall profit tax of $10 billion to $12 billion this year on oil companies. It also included new margin requirements on oil-futures trades, and aimed to outlaw price gouging, Bloomberg reported.
Following the defeat, Democrats said they may work on separate legislation to increase oversight of trading by the Commodity Futures Trading Commission, which is stepping up oversight of energy markets, including oil trading.
Sen. Charles Schumer (D-N.Y.), a main advocate for the tax, said that parts of the windfall tax bill including commission provisions could be split into separate proposals, Bloomberg said.
