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Rising Gas Prices: Enough is Enough!

As we know in Michigan, filling up your gas tank isn't a luxury -- it's a necessity. Gas prices are rising out of control. Prices are already over $3.00 a gallon in many parts of the state. To fill up your tank today costs you an average of $42.37 -- that's $4 more than it cost last month, and $10 more than it cost last year! You can find out what the current prices are in your areas at websites like www.michigangasprices.com that track prices at various stations in Michigan.

And there's no relief in sight. The Administration is projecting that gas prices this summer will be an average of 25 cents more per gallon than last summer. Most parts of Michigan will end up paying more than $3.00 a gallon for gas by Labor Day. Michigan families are paying $500 more this year for gas than last year -- that's a house payment, grocery money, college textbooks. And these high costs have a negative impact on Michigan's economy. General Motors estimates that for every $1 increase in the price of a barrel of oil, their logistics costs go up by $4 million. Increasing gas prices during the summer also have a major impact on Michigan tourism and recreation.

Oil Companies are Making Record Profits

As Michigan families are digging deeper into their pockets to keep up with gas prices, the oil companies are making record-breaking profits. Last year, the five largest oil companies reported profits of $111 billion. In 2005, ExxonMobil reported $36 billion in profits -- the largest annual profit in U.S. corporate history!

It was recently revealed that ExxonMobile CEO Lee Raymond receives a total compensation package of $69.7 million. That's $109,915 every day, including weekends!

Mr. Raymond recently told CNN that "a single quarter or single year (of profits) is not all that significant." Well, these record gas prices are very significant for Michigan families.

The oil companies must be held accountable. Corporations have a right to earn a legitimate profit, but when Michigan families are paying over $40 to fill up their gas tank, and the industry is raking in record profits, there's something wrong.

Holding the Oil Companies Accountable

Senator Stabenow has introduced the Oil Company Accountability Act in the Senate that would provide immediate relief and help Michigan families cope with the rising cost of gas. Instead of rewarding oil companies with tax breaks and penalizing consumers at the pump, her bill will put money back in the pockets of Michigan taxpayers.

• Close Tax Loopholes. While Michigan families are paying their taxes, oil companies are using loopholes in the law to avoid paying their fair share of taxes. The Stabenow bill would repeal $5 billion in special tax breaks for oil companies.
  
• Rebate Check for Consumers. The Stabenow bill would take those savings from tax loopholes and provide an immediate, $500 tax rebate check to families to help offset these high energy prices. Families earning up to $119,950 per year would be eligible for this one-time rebate.

Senator Stabenow also included an amendment to the 2005 Energy Bill that ordered the Federal Trade Commission to investigate potential price-gouging by the major oil companies. The FTC has already sent out over 200 demands for information, similar to subpoenas, and has conducted numerous depositions and formal interviews to get information needed for their investigation.