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June 15, 1977 - Image 10

Resource type:
Michigan Daily, 1977-06-15

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Page Ten


Wednesday, June t S, 19771

Page Ten TIlE MICHIGAN DAILY Wednesday, June 15, 197p

Carter oil tax passes committee

(louse Ways and Means Com-
mittee handed President Carter
a major victory yesterday by
approving a new oil tax aimed
at forcing energy conservation
by raising prices.
One effect of the tax would
be to raise the price of gaso-
line by 7.6 cents a gallon by
THE VOTE for a substitute
Crude-oil tax similar to the one
offered by Carter was 21 to 16,
with Republicans and oil-state
Democrats opposing it. The
panel has yet to consider the
President's plan to refund pro-
ceeds from that tax to consum-
flowever, in three votes the
committee made clear it does
not favor turning over a share
of the tax revenue to the oil
industry as a production in-
The victory was the biggest
yet for Carter since the Ways

and Means Committee began
considering his energy-tax pro-
gram. le suffered three major
defeats in the committee last
CARTER'S press secretary,
Jody Powell, said after the vote
the President was "extremely
pleased by what he termed the
'courageous action' taken by the
house Ways and Means Com-
mittee, action taken in the face
of an intense lobbying cam-
paign by the oil industry."
Powell said Carter hoped the
committee action "will be
maintained in future considera-
tion by the Congress."
Some administration officials
have viewed the crude oil tax
as a more important part of the
Carter energy program than
the standby gasoline tax and
rebates for buyers of gas effic-
ient cars, which were defeated,
and the tax on gas guzzling
cars, which was watered down
by the committee.

THE CRUDE JIL tax would
take effect in three stages, start-
ing in 1978. Eventually, the
price of oil produced in the
United States would be raised
to the world price. U. S. produc-
tion now ranges in price from
$5.25 a barrel to $11.28. The
world price averages about
The Carter administration
estimates the new tax would
save up to 200,000 barrels of oil
a day in 1980, rising to double
that amount by 1985. Current
use is about 17.4 million barrels
a day.
Rather than give the tax back
to taxpayers, the oil industry
advocates turning over a share
of the money to producers, in
an effort to increase explora-
tion for more oil. The commit-
tee defeated three attempts to
earmark the money for produc-
THE KEY vote was 21 to 16
against a plan by Rep. Joe
Waggonner, (D - La.), t h a t

would have provided a federal
subsidy of up to $2.5 billion a
year for producers.
Earlier in the day, Laurence
Woodworth, assistant secretary
of the treasury, said Carter con-
siders such proposals "a ripoff
of the American consumer and
wholly unjustified."
"I can't think of anything
from our standpoint that would
be worse," Woodworth said.
THE 16 votes for the Wag-
goner subsidy were cast by the
12 Republicans on the panel
and four oil-state Democrats.
Carter wants most of the
money from the tax, which by
1980 would total $14 billion a
year, to be given back to
Americans. The first, share of
the money would go to refund
higher prices of home heating
oil that would result from the
tax. Most of the remainder
would be returned across the
board as credits against federal
income taxes.

wins seat
in board
(Continued from Pae il
grams have been mandated h1
several recent bills at both th
state and national level. The
tally on the special educati;
millage was 7,985-5,510.
Board of Education Secretar
Sharon Watkins was ilot sur
prised at the succes of bath
millage proposals
"It's not realt -a asi
considering who the candidate
were," said Watkins 'lTe pe
ple who turned out for the elec
tions are generally peope wh
were flushed out by the cand,
dates. And this year the ca;ndi.
dates were pro-imit. pr
special education.
Throughout its 72-year hrsr,
the University's trwtim-,rg tatnk fo,
study of ship design(1ee
long, 22 feet wide. 9 ,feet deep
was the only one on ay U
campus; it is still one t jta
four in the entire comuntry, f
it's the only one big ernrgh
allow for propeller testing
U of M
at the
Open 8:30 am.i
5:15 p m.
and CHET

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By our parents,
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It's hard to
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