CMA says energy tax will cut jobs, increase costs

Abstract

The chemical industry, it goes without saying, is a big user of petroleum and natural gas, both as feedstocks and as energy sources. It also uses a lot of electricity. Thus, it seems natural the industry should oppose President Bill Clinton's proposed Btu tax—a tax on the heat value of energy-related products consumed. Leading the charge is the Chemical Manufacturers Association (CMA)—the Washington, D.C.-based trade organization of the chemical industry. In a report released last month, CMA says the proposed tax would increase costs, leading to inflation; cut jobs; and make the chemical industry less competitive in the international marketplace. Instead of the Btu tax, CMA says it would rather have a value-added tax, which would tax consumption rather than manufacturing. In a statement to the House Ways & Means Committee, based on the industry group's report, J. Roger Hirl, president and chief executive officer of Occidental Chemical and chairman of CMA's executive committee, said, ...