Carter energy plan would do more harm than good

The Administration's energy plan is criticized for its failure to provide incentives that will increase domestic production and reduce U.S. dependence on imported energy. The House bill is considered the highest tax bill in U.S. history and a potential threat to solving future supply problems. Haste and a lack of appreciation for the complexities of energy issues are blamed. The House bill emphasizes conservation through taxation, but does not address the demand for future supplies, which would have to be met by strict rationing or increased imports. A review of how the bill will affect energy supplies covers price controls, natural gas restrictions, average pricing, exploration restrictions, the Outer Continental Shelf, tax burdens, and obstacles to coal conservation, nuclear power and investment. The taxes will effectively raise crude oil prices without allowing the revenue to be used for new development and would penalize specific users. (DCK)