War Supplemental -- Blue Dogs Hold Line on PAYGO: Frustrating House Democratic leadership efforts to bring to a vote on the $183.6 billion war supplemental spending bill to the House floor today, the Blue Dog coalition is balking at supporting the rules under which the bill would be considered. Their concern is that a measure to increase GI Bill funding violates pay-as-you-go rules, because it would be a new entitlement not be offset by revenue increases or spending decreases. Taxes -- Senate Dems Push Windfall Profits Tax on Big Oil: Yesterday, Senate Democrats unveiled legislation that would levy a new 25 percent tax on major oil-producing companies that do not reinvest their profits in increased capacity or renewable energy technologies and repeal a tax deduction provided to them as manufacturers of oil and gas products. The Consumer-First Energy Act would use the revenues from the 25 percent "Windfall Profits Tax" for new consumer price protections, and renewable energy development and energy efficiency technologies. The repeal of the Section 199 manufacturing tax credit for the five largest oil and gas companies would raise $17 billion over 10 years to pay for the energy independence trust fund. Taxes -- New York Senate Adopts Gas Tax Holiday: The New York State Senate approved a bill yesterday that would create a "summer gas tax holiday" by eliminating three state taxes on motor fuel. The bill would suspend 32 cents per gallon in taxes from Memorial Day through Labor Day. While the bill passed the Republican-controlled Senate by a vote of 46-15, it is expected to die in the Democratic-controlled state Assembly. Sen. Liz Krueger (D), an opponent of the bill, said it was "obviously meant to prey on the desperate need for relief of New York's suffering drivers."