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Show THE VOICE OF BUSINESS Uncle Sam and OPEC parvners vo vhe end By Richard L. Lesher, President Chamber of Commerce of I lie United Simics When President Carter announced on March 14 his decision to unilaterally impose an oil import fee equivalent to a 10-cent tax on gasoline, he made this very specific promise: "The funds from the gasoline conservation charge will be held in reserve or used to reduce the national debt. I do not intend to use these revenues to balance the budget or as a substitute for necessary spending cuts." (Emphasis added.) That, of course, was eight weeks ago. Since that time, two important developments have transpired: First, a U.S. District Court has ruled his tax illegal; then, rather than roll over and play dead, Congress made its intention to roll back the tax. In light of these rebuffs, how does the President now regard the prospect of the federal government being denied this approximately ap-proximately $10 billion in extra revenues? Why, shades of King George, he is furious! Mr. Carter says that Congress is too concerned with the upcoming elections and is caving in to political pressure. But sir, might not Congress also be concerned with protecting a Constitutional principle you seem ready to throw out the window-namely, window-namely, that it is Congress that levies taxes, and that taxation without representation was once considered tyranny? In criticizing the lawmakers, Mr. Carter also reveals the real source of his irritation: He admits that the rejection of his beloved import tax will probably preclude a balanced federal budget. In fact, he has never tried to balance the budget by insisting on needed spending reductions, but has been counting on a series of huge tax increases ( including the oil import fee), which together, total nearfy $100 billion. What's more, the oil import fee itself makes no economic sense. The Ad- ministration mistakenly blames inflation in-flation on high oil prices, but ironically, its proposed fee will raise them still further. Uncle Sam will be competing with OPEC to see which can out-gouge the American public. Nor is an import fee needed, as the Adminstration contends, to promote additional energy conservation. Market forces since January have already cut oil imports by 11 percent and cut gasoline consumption by 8 percent. If the Administration only had the sense to phase in decontrol more rapidly, we could conserve even more, and receive, thanks to the added incentives, in-centives, a dividend in the form of more domestic production of energy. But of course we probably won't see that happen because it implies an unacceptable unac-ceptable alternative-it might actually encourage people to make a profit, which the Administration would probably condemn as a national loss on a par with losing baseball for the entire summer. Still, one must ask, do we really want to increase to cost of driving artificially through government fees and more regulations at the very moment the American economy is slumping deeper into recession? Of course not. But you see, when you allow yourself to believe that this tax and others supported by the Administration Ad-ministration actually have a real economic purpose i.e., fighting inflation, in-flation, promoting energy production or conservation you are guilty of an assault on your own sanity. The Administration Ad-ministration raises taxes for one reason i only to get more revenues to spend -more federal programs. j. When Congress passed the so-calf windfall profits tax, everyone-ey' those in the Administration admitt' that it would result in less exploratii ' less drilling and less production of r ' oil. But then, so what? For the beauty' the tax from the Administratia-vantage Administratia-vantage point is that it permits C-government C-government to cash itself in as a facto member of OPEC. Everytii; OPEC raises its prices, the governrm; can feign indignation while laughing : the way to the bank as its revenii soar. ; The same is true of inflation, wh? the government is also using to re': automatic profits. Everytime inflate pushes you into a higher tax brack" the government receives ', unlegislated windfall, even though yi-after-tax income might be unchang If the Administration really f', compassion for taxpayers it would -supporting a reduction, or at the vi least, an indexing of tax rates. Yel" continues to push for more. As The , Wall Street Journal -creatively put it recently: "...('. economy's biggest problem is high t increasing rates of taxation to supp ', runaway government expenditures, for each symptom, the prescription' the same: An energy problem, increii taxes. A social security problem, " crease taxes. An inflation problc increase taxes. Falling hair, shortn' of breath, internal bleeding? Hi another arsenic." ' |