Democrats argued oil companies should have to pay right along with drivers facing $4 dollar gas.

Sen. Jon Tester, (D) Montana said, "I remember when gas was a buck forty-six. It wasn't that long ago. It was before the Bush administration took over. That was before the war in Iraq, before speculators and market manipulators spiraled out of control. Before that $17 billion tax cut for our nation's biggest oil companies."

Republicans say higher taxes on oil companies would increase, not lower, gas prices.

Wyoming republican Senator John Barrasso, said Tuesday the key to a long-term energy plan is developing domestic energy.

Sen. John Barrasso, (R) Wyoming said, “We need a program just as successful at bringing together private business and the government, just as they did in the '60's to put the Apollo moon program together, the best minds and scientists, we can do the same thing with energy but it's going to take an investment by the government to get it done.”

The windfall tax was part of two efforts that failed in the senate Tuesday aimed at addressing soaring gas prices.