by Julia Rosen [courtesy of Working Californians blogs]

It was just last week that there were rumors floating around that the Democrats were going to strip a roll-back on a tax break for oil companies. Bush is threatening to veto, but they are moving forward with it anyways. SFChron:

Democratic leaders circulated a summary of the legislation that includes the new taxes as well as a requirement for a 40 percent increase in automobile fuel efficiency, a huge increase in the use of ethanol as a motor fuel, and a mandate for utilities to use renewable fuels.

Republicans earlier this year blocked Senate attempts to pass new energy taxes, contending they would hinder domestic oil and gas production. Democratic supporters of the taxes said that with oil hovering near $90 a barrel and the industry making large profits, the tax breaks aren't needed.

The White House has said repeatedly that if the energy legislation singles out the oil companies for new taxes, advisers would recommend that President Bush veto the bill.

Of course restoring an old tax is an increase in the world of Bush. The Democrats are just seeking to repeal the tax breaks given to the major oil companies by the Republicans.