WASHINGTON \u2014 Executives of five of the largest oil companies, under heavy fire over near-record gasoline prices and their high first-quarter profits, pushed back on Thursday against calls for cuts in tax subsidies benefiting the industry.<\/p>\n
Rex W. Tillerson, chief executive of Exxon Mobil, called the proposed tax changes \u201cmisinformed and discriminatory\u201d as well as \u201ccounterproductive.\u201d He added: \u201cBy undermining U.S. competitiveness, they would discourage future investment in energy projects in the United States and therefore undercut job creation and economic growth.\u201d <\/p>\n
His remarks came at a hearing of the Senate Finance Committee on a proposal from Democratic senators to end tax subsidies for five oil companies: BP, Exxon Mobil, Shell, Chevron and Conoco Phillips. Except for BP, which saw its profit fall because of the costs of the gulf oil spill, the companies\u2019 first-quarter profits rose sharply, with Exxon reporting a 69 percent rise in quarterly profits.<\/p>\n
The proposal, from Senators Robert Menendez of New Jersey, Sherrod Brown of Ohio and Claire McCaskill of Missouri, would use the money saved to reduce the federal deficit. In announcing the legislation, Mr. Menendez said earlier this week that \u201cwe simply can\u2019t afford to keep giving away billions in taxpayer handouts to oil companies that are doing nothing to help lower prices.\u201d <\/p>\n