U.S. industry groups, fearful that Bush administration and congressional budget negotiators are considering new energy taxes, warned against such action last week.
George Lawrence, president of the American Gas Association, particularly warned against a BTU tax or a tax on carbons-coal, oil, and natural gas.
"An energy tax would be difficult to implement in most energy industries, but particularly complex in the case of natural gas," Lawrence said.
"In the past, such a tax may have been collectible by a regulated transportation company, but today these companies often act as gas transporters without knowledge of the gas sales price or identity of the shipper."
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The American Petroleum Institute and National Association of Manufacturers also warned against energy taxes, including a gasoline tax.
Charles DiBona, API president, said, "Energy taxes would cost this country thousands of jobs and billions of dollars in savings and hurt economic growth and international competitiveness."
He said if more tax revenues must be raised, the best route would be a value added tax imposed on all goods and services, which would not single out a particular sector of the economy and could be levied on imported goods.
The Interstate Natural Gas Association of America also said an energy tax should not be part of a deficit reduction package. Jerald Halvorsen, Ingaa president, said, "Domestic oil and gas producers are struggling to recover from years of idled drilling rigs and sharply curtailed exploration.
"A tax such as a BTU tax would have a debilitating effect on an industry laboring under serious economic burdens."
He said an oil import fee would have a far less serious effect on the economy and would help promote energy security by encouraging development of U.S. oil and gas supplies.
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