Senate Republicans on Tuesday blocked a proposal to tax the windfall profits of the nation’s biggest oil companies and eliminate some of the firms’ tax breaks, rejecting Democratic claims that the measure would help assuage consumer anger over $4-a-gallon gasoline.

The vote was largely partisan, with each party sticking to long-held positions while striving to connect with frustrated consumers in an election year. Gasoline prices rose another 2 cents Tuesday to a nationwide average of $4.04 a gallon for regular, but there appeared to be little prospect of imminent action by Congress or the Bush administration.

The 51-43 Senate vote fell nine short of the 60 required to proceed to debate on the Democrat-sponsored energy measure, which would have erased $17 billion in tax breaks for oil companies over 10 years. It also would have created a levy on “unreasonable” profits collected by the five largest U.S. oil companies. Only six Republicans voted to move ahead

The bill would have used the revenue to create an Energy Independence and Security Trust Fund, charged with reducing U.S. dependence on foreign and “unsustainable” energy sources and reducing the risks of global warming.

The bill also would have instructed the Justice Department to pursue members of OPEC for alleged price fixing and required oil traders to put up more cash on futures exchanges to address speculation, which many observers believe is contributing to the unprecedented run-up in world crude oil prices.

Republicans said that the measure, which they dubbed the “no energy bill,” would do little to lower gasoline prices and could have the opposite effect by placing an additional tax burden on oil companies. They said the nation could combat high fuel prices more effectively by increasing domestic oil supplies by permitting new exploration in the Arctic National Wildlife Refuge and in waters on the Outer Continental Shelf. Most congressional Democrats oppose drilling in those areas.

Ok I have a question–will someone explain to me why we provide subsidies to oil companies when they are making many billions in profits?  Where is that sound fiscal policy?  Why would domestic drilling cut the price of gas?  These are great talking points, but NO one every explains the way it would work.  Just that it would lower prices.  Fine, but why will it lower those prices.  if anyone has an answer—I am listening!