Breaking Stories

Exxon Mobil has been lobbying against parts of Democrats’ big social and climate spending bill

A view of the ExxonMobil Baton Rouge Refinery in Baton Rouge, Louisiana, May 15, 2021.

Kathleen Flynn | Reuters

Exxon Mobil has been lobbying against pieces of a sprawling Democratic budget bill aimed at boosting working class families and fighting climate change.

The fossil fuel giant has spent $275,000 over the past week on Facebook ads that include spots targeting tax hikes Democrats have included in the bill, which has a $3.5 trillion price tag at the moment. An Exxon lobbyist earlier this year also focused on legislation regarding corporate and international taxes.

The final shape of the bill has yet to be determined, although it is expected to include measures to boost child and elder care, and policies aimed at cutting carbon emissions. Democratic leaders hope to pass the bill within weeks.

The ads don’t mention President Joe Biden or the Democrats. At least six of the ads ran from Friday through Monday, although they are now inactive. One of those advertisements says, “Tell Congress no tax hikes.” After a user clicks the ad, it reads, “Contact your elected officials today and let them know you oppose the proposed tax increases on American businesses.”

The recent $275,000-plus ad buy is part of $2 million Exxon has spent on Facebook ads over the past 90 days. The spots pushing opposing raising taxes on businesses also ran before the prior-week period.

Democrats have proposed raising the corporate tax rate from 21% to 26.5% as a way to help pay for the bill. They have also called for increased fees on the fossil fuel industry, while they are divided over whether to include a carbon tax.

The public is largely supportive of tax increases on corporations and the wealthy. A recent Morning Consult poll shows that 68% of those surveyed support raising taxes on the wealthy, and 62% have the same opinion of a possible uptick in corporate taxes.

Several special interest groups have launched lobbying efforts against the tax proposals and other elements of the bill, with much of the focus on centrists such as Sens. Joe Manchin, D-W.Va and Kyrsten Sinema, D-Ariz. Democrats need all 50 members of their caucus in the Senate to pass the measure using a tactic called budget reconciliation, which means they won’t need to sway any Republicans to reach the usual 60-vote threshold to allow bills to proceed.

Any overhaul will require support from Manchin, whose home state of West Virginia is a large producer of fossil fuels such as coal, natural gas and oil. The state is home to part of the Marcellus Shale, a geological formation that also serves as one of the biggest natural gas fields in North America. Exxon Mobil oil and gas fracking subsidiary XTO Energy has operations in West Virginia.

Since the 2012 election cycle, Manchin has received just over $12,000 from the Exxon Mobil political action committee, according to data from the nonpartisan Center for Responsive Politics. Manchin is the chair of the Senate’s energy and natural resources committee. A senior Exxon lobbyist was caught on camera by the UK’s Channel 4, saying that Manchin was one of his top targets. The lobbyist called Manchin the “Kingmaker” and said that he spoke to the senator’s office on a weekly basis.

Manchin’s office did not return a request for comment.

Exxon Mobil has spent over $2.7 million on lobbying so far this year, according to CRP data. Michael Solon, one of the Exxon lobbyists, was paid $10,000 for work done in the second quarter that specifically focused on “unspecified reconciliation legislation related to corporate and international taxes,” according to the disclosure report.

Before he was a lobbyist, Solon worked as a policy director for Senate Minority Leader Mitch McConnell, R-Ky.

A spokesperson for Exxon did not return a request for comment.

Democrats in the House and the Senate are trying to craft the framework of a bill that could win support from centrists and progressives alike in both chambers. While a final bill will likely look different, the policies approved by House committees this month as Democrats put together a larger proposal offer clues into what the plan could contain. Democratic leaders are aiming to pass their investment in the social safety net and climate policy in the coming weeks.

Other companies with links to the oil and gas industry have also been actively taking aim at the reconciliation tax proposals through their lobbyists. Gas giant Valero paid Cornerstone Government Affairs less than $5,000 in the second quarter to engage with House and Senate lawmakers on the “corporate tax provisions of the Build Back Better budget reconciliation bill,” according to the lobbying disclosure report.

The International Association of Drilling Contractors, a nonprofit trade association, spent around the same amount for lobbying lawmakers and Biden administration officials on “oil and gas policies in reconciliation,” among other policies, according to their second quarter report. The group is “dedicated to enhancing the interests of the oil-and-gas and geothermal drilling and completion industry worldwide,” according to their LinkedIn page.

There are other Democratic proposals linked to fighting climate change that could be of concern for oil and gas industry players.

As part of its markup, the House Natural Resources Committee proposed increased fossil fuel fees and royalties for extraction on public lands, among other plans that would affect the oil industry. The panel has also pushed to repeal the oil and gas leasing program in the Arctic National Wildlife Refuge set up as part of the 2017 Republican tax law.

The House Energy and Commerce Committee also advanced a fee on methane emissions, a product of oil and gas operations, among other energy-related policies.

Democrats are also split over whether to include a proposed carbon tax in the legislation. The provision, which could run afoul of Biden’s pledge not to raise taxes on households that make less than $400,000, aims to reduce fossil-fuel emissions.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *