Senate GOP backs off $100 gas rebate proposal

WASHINGTON — Senate Majority Leader Bill Frist, under pressure from business leaders, retreated Monday from a plan that would have used a tax increase on oil companies and other businesses to pay for a $100 gasoline rebate for millions of motorists.

Frist had proposed an accounting change that would have required oil companies to pay more taxes on their inventory of crude as a way to pay the one-time rebate that GOP leaders rolled out last week as they scrambled to find ways to ease public anger over soaring gasoline prices.

In a statement, Frist said he will still push the rebate, but abandoned the accounting change and said the Senate Finance Committee planned a hearing on the issue in the near future.

Frist gave no indication how the rebate, estimated to cost about $10 billion, will be paid for, although he said he still planned to “find a way to bring our proposals to the Senate floor for a vote.”

The rebate proposal, meanwhile, seemed to have little appeal among motorists who would benefit.

CNN