Washington(Xinhua) : The US Senate Republicans Thursday blocked a new comprehensive energy bill that would have changed the way the country is fuelled.
The bill, passed in the House of Representatives last week, was blocked by 59-40 in Senate, only one vote short in getting the 60 votes needed.
The Republicans said they turned against the bill as it included tax increases for the oil companies.
Under a $21 billion tax package, some $13.5 billion in tax breaks for the five largest oil companies would be repealed to be used for tax incentives to promote renewable fuels and energy efficiency, according to the new energy bill.
Analysts said that the “Five Oil Bigs,” namely Exxon Mobile, Chevron, Conoco Philips, Royal Dutch Shell PLC and BP PLC would be the hardest hit by the tax repeals.
Republican leader Mitch McConnell said the Democrats knew the bill with the tax package would never be signed into law because of the president’s opposition.
The White House has voiced a veto threat. “Their proposal would raise taxes and increase energy prices for Americans,” said the White House in a statement issued last week.
“That is a misguided approach and if it made it to the president’s desk, he would veto it,” it added.
Senate Majority leader Harry Reid said he was disappointed by the result, but added that he would strip the controversial tax package from the bill and seek to pass it later in the day.
“I’m disappointed we didn’t pick up one more vote,” said Reid in a floor statement immediately after the vote, “We’re going to push the bill today if at all possible.”