Johnston opens debate to scrap Btu tax for VAT

Journal Article · Thu Apr 01 04:00:00 EST 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6499857

Burkhart, L A

At a meeting of the Senate Energy Committee February 24, Chairman J. Bennett Johnston (D-LA), give his preliminary view that a value-added tax (VAT) would offer a better means of raising revenue than President Clinton's proposed Btu tax. The VAT - widely used in Europe - is a tax imposed at each step of the manufacturing process and reflects the value added to a product. The tax also is imposed on the sales of services as they are rendered. The VAT would be rebated on exports, but imposed on imports. Sen. Johnston advocated the VAT because it is broader based, has no regional or sectorial disparities, and doesn't adversely affect our international competitiveness, because exports are exempt. He said that he was waiting to be dissuaded from his present view. A witness at the hearing, Jerry J. Jasinowski, president of the National Association of Manufacturers, was clearly in favor of a VAT over the Btu tax. He favored the VAT because: it would have no anticompetitive effects at home and overseas; it would be more benign than the Btu tax on growth, employment, investment, and productivity; it would create fewer disparities; manufacturing would be hard hit by a Btu tax; and the taxable base is broader, making a VAT more of a systematic reform of the tax code.

• OSTI ID: 6499857
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:7; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
CALORIFIC VALUE
COMBUSTION PROPERTIES
ENERGY
ENERGY CONSUMPTION
ENERGY POLICY
GOVERNMENT POLICIES
MANUFACTURING
NATIONAL GOVERNMENT
TARIFFS
TAXES