U. S. taxes on energy resources
Project Independence should be designed to accept oil imports, build up reserves, and guarantee losses to producers of substitutes, rather than becoming another protective tariff with percentage depletion allowances and deductions of intangibles on successful wells. Contrary to claims, lower income taxes are not producing a reserve, which could be provided through direct purchase of crude for storage or by payment for in situ reserves. Risks are better avoided through loss guarantees, and integrated corporate tax rate reduction is preferable to selective politically controlled relief. Revised bidding procedures on public lands would correct the overdrilling trend that has resulted from current land-ownership rules. Low electricity prices and over-use of resources have resulted from the unnecessary undertaxing of public utilities. Property and excise taxes, import quotas, prorationing, environmental controls, and natural gas price regulations have all played a heavy part in the past tax structure. Current issues revolve around price controls, windfall taxes, income distribution, and resource allocations. Future policies will need to address the concepts of zero imports, balanced reserves, and reduced consumption. U.S. consumers should not be deprived of the benefits of reduced world oil prices in the future. This would mean keeping the U.S. in the world market while economically developing substitutes. (24 references) (DCK)
- Research Organization:
- Georgetown Univ., Washington, DC
- OSTI ID:
- 7283676
- Journal Information:
- Am. Econ. Rev.; (United States), Journal Name: Am. Econ. Rev.; (United States) Vol. 65:2; ISSN AERNA
- Country of Publication:
- United States
- Language:
- English
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