WASHINGTON, DC - U.S. Senator Jack Reed (D-RI) today joined Senator Bob Menendez (D-NJ) in introducing the Close Big Oil Tax Loopholes Act, a bill to eliminate taxpayer handouts to the five largest oil companies making windfall profits, and divert the savings to reduce the U.S. deficit.  Ending tax give-aways for the five biggest oil companies -- BP, Exxon Mobil, Shell, Chevron and Conoco Phillips -- the Close Big Oil Tax Loopholes Act would save taxpayers an estimated $21 billion over 10 years to help pay down the national debt.

While consumers are paying $4 per gallon at the pump, taxpayers are also providing $4 billion in subsidies to big oil companies each year.  At a time when the top five big oil companies are reaping near record profits - over $33 billion in the first three months of this year alone - these tax subsidies are unnecessary and unjustifiable.

"This is a fiscally responsible plan to stand up for middle-class families, pay down the debt, and end corporate welfare for  big oil.  Those who think we can balance the budget by simply cutting things like Pell grants and NPR are mistaken.  Incredibly profitable oil companies should pay their fair share of taxes, and, by eliminating unnecessary deductions, this bill will help ensure they do," said Reed, the Chairman of the Appropriations Subcommittee on the Interior and Environment, who supports stronger oversight to ensure energy companies drilling in public lands and waters are paying the appropriate level of royalties to the American people. 

The Close Big Oil Tax Loopholes Act would repeal the deduction for taxes paid to foreign governments, as well as limit the deduction oil companies may claim for other drilling costs.

Even House Speaker John A. Boehner (R-OH) acknowledged the common sense of eliminating taxpayer subsidies for big oil companies, telling ABC News last month: "We're in a time when the federal government's short on revenues…  They [oil companies] ought to be paying their fair share.  Everybody wants to go after the oil companies and frankly, they've got some part of this to blame."

All of the savings realized as the result of the Close Big Oil Tax Loopholes Act's elimination of these tax give-aways currently going to the major integrated oil companies are devoted to deficit reduction.