Solving the energy crisis: a better tax solution. [Energy excise tax proposed]
The author outlines a comprehensive energy excise tax which he feels will be as effective and have more positive benefits than a cumbersome combination of credits, incentives, subsidies, and other policies. Energy excise taxes, combined with a price decontrol of all fuels, most nearly simulate a market approach to lowering energy imports. The tax should be based on estimates of the revenues needed and could be collected from the refiners, importers, or pipeline owners who would pass the cost on to the end users. Economists generally agree that fuel-price elasticity is about 0.20 to 0.25 - figures that can be used to determine the appropriate cost to achieve the desired decrease in demand. This approach can be used for the cost-effective policy of lowering demand or for policies aimed at increasing production and supplies. The impact of an energy excise tax on income distribution, inflation, and income tax is examined and found to cause no loss in purchasing power or income tax burden by income group, while inflation would be dampened. A three-year transition period could allow the restructure of energy prices to be phased in. (DCK)
- Research Organization:
- Arnold D. Nadler Associates, Yonkers, NY
- OSTI ID:
- 5422404
- Journal Information:
- Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 5:7; ISSN EUSND
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
290200 -- Energy Planning & Policy-- Economics & Sociology
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
ECONOMIC ELASTICITY
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY POLICY
ENERGY SUPPLIES
FUELS
GOVERNMENT POLICIES
INCOME DISTRIBUTION
INFLATION
PRICES
TAXES