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AMERICAN COMMERCIAL LINES RESPONDS TO ADMINISTRATION'S TAX PACKAGE

 JEFFERSONVILLE, Ind., May 14 /PRNewswire/ -- "The waterway fuel tax 'compromise' is the same as being thrown a lifeline with an anchor attached to the end," said Michael C. Hagan, president and chief executive officer of American Commercial Lines, in response to the Administration's tax package reported out of the House Ways and Means Committee yesterday. "Cutting a bad public tax policy in half still leaves you with bad policy."
 The House of Representatives' tax panel has approved a 263 percent increase in the Waterway Fuel Tax. The new 50 cents per gallon tax, a substitute for Clinton's original $1 proposal, will be in addition to the proposed Btu tax of 9 cents per gallon and the current 17 cents per gallon tax paid for the towing industry's portion of new lock and dam construction. When all of the federal fuel tax initiatives are implemented, including tax increases scheduled to take effect under current law and these new proposed taxes, the American towing industry would be subjected to a fuel tax of 79 cents per gallon.
 "We have demonstrated through independent studies that the Administration's original tax proposal of $1 per gallon was bad public policy and would add to the overall budget deficit, not reduce it," said Hagan. "The river transportation industry will be just as mortally wounded by this $1/50 cents 'compromise' as the biblical baby, had Solomon's 'compromise' been carried out."
 ACL officials said they would continue their efforts to eliminate this tax in the House of Representatives and the Senate, which now begins its deliberations on the Administration's tax package. Hagan concluded, "We remain confident Congress will agree that America needs job creation, not job elimination; and economic expansion, not economic destruction. Those goals and the waterway fuel tax proposal are direct opposites. When Congress finally sees that basic fact, they should and, I believe, will eliminate this tax from the budget package."
 American Commercial Lines Inc., a wholly owned subsidiary of CSX Corporation (NYSE: CSX), is headquartered in Jeffersonville, Ind., and operates the nation's largest fleet of inland river barges and towing vessels. ACL also has subsidiaries in marine construction, marine repair, terminal service and communications. CSX Corporation, headquartered in Richmond, Va., is an international transportation company offering a variety of rail, container-shipping, intermodal, trucking and barge services.
 -0- 5/1493
 /CONTACT: Michael A. Khouri of American Commercial Lines, 812-288-0596/
 (CSX)


CO: American Commercial Lines Inc.; CSX Corporation ST: Indiana IN: MAR SU: EXE

TW -- DC010 -- 8614 05/14/93 11:56 EDT
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Date:May 14, 1993
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