Assessing the impact of a BTU tax on the US economy

Journal Article · Fri Dec 31 04:00:00 EST 1993 · Journal of Energy and Development

OSTI ID:93831

Uri, N D ^[1]; Boyd, R

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1. Univ. of Illinois, Urbana, IL (United States)

Early in his administration, President Clinton proposed a Btu tax on various types of energy as one component of a comprehensive program designed to reduce the federal government budget deficit. Phased in over three years beginning in July 1994, the proposed tax on natural gas, coal, and nuclear power would be 25.7 cents per million Btu`s (British thermal units). Hydroelectric power would be taxed according to the average Btu content of fossil fuels burned in conventional power plants to produce equivalent electrical energy. The tax on refined petroleum products (e.g., gasoline and diesel fuel) would be 59.9 cents per million Btu`s. It was anticipated that a Btu tax configured in this fashion would raise approximately $71.4 billion. Although the Btu tax was not enacted in 1993, the possibility of a redrawn energy tax package remains as does proposing the measure again at another time or under different conditions. Thus, the analysis in this article is of both historical interest and possible future application.

• OSTI ID: 93831
• Journal Information: Journal of Energy and Development, Journal Name: Journal of Energy and Development Journal Issue: 2 Vol. 18; ISSN 0361-4476; ISSN JENDD2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMY
ENERGY
TAXES
USA