As the new energy bill hit the Senate with a thud last week, we had to ask: Is it really so easy to stall vital public policy with tired old scare tactics? Last Friday, the answer was “yes”.

One of the potholes the bill has encountered is its $13 billion take-back from Big Oil. The bill proposes to repeal tax breaks given to the industry by the Republican – controlled Congress in 2004-2005 and to close some tax loopholes that allow oil companies to game the system when they report income from foreign oil and gas extraction.

Predictably, the oil industry and the White House complained about a tax increase and warned of higher prices at the pump — two time-tested themes to trigger knee-jerk opposition from the public.

Let’s break it down.

First, rolling back a tax break isn’t the same as raising a tax. It’s the equivalent of having the oil industry return a gift it doesn’t need and doesn’t deserve, rather than picking its pockets.

Second, while oil companies might use the roll-back as an excuse to raise gasoline prices, it wouldn’t be the fault of the energy bill. The U.S. Energy Information Administration says that subsidies in this range are “too small to have a significant effect on the overall level of energy prices and consumption in the United States.” In other words, subsidies at this scale don’t lower energy prices and their repeal won’t raise them.