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NAM-LED AFFORDABLE ENERGY ALLIANCE ORGANIZES TO FIGHT JOB LOSSES THREATENED BY BTU ENERGY TAX -- MORE THAN 900 JOIN BROAD EFFORT

 WASHINGTON, May 5 /PRNewswire/ -- "The administration's proposed BTU energy tax could cost over 600,000 jobs, slow economic growth and drive up consumer prices, while conferring a big competitive disadvantage on our companies," National Association of Manufacturers President Jerry Jasinowski said today. "That's why more than 900 manufacturing companies, farm organizations, business trade groups and industry and state associations have joined so far in one of the largest campaigns ever put together to oppose a legislative proposal, the Affordable Energy Alliance."
 Jasinowski's formal announcement today of the Alliance campaign was accompanied by statements of support from a broad array of organizations and companies, including the American Farm Bureau Federation. "This is a remarkably broad coalition representing nearly every sector of the economy, of industry, of trade groups and state business associations from all across the United States," Jasinowski said.
 "Transportation, agriculture, construction, utilities companies, chemicals, paper and energy are just some of the areas where employees, employers and customers would experience especially severe effects of this tax, which is so heavily centered on industrial production," Jasinowski said. "That last point is important. This should not be counted as a tax just on consumption. It is a tax on production."
 "Because manufacturing depends so much on the energy that turns the motors and keeps production running, industrial production would hit be about 30 percent harder than the economy as a whole," Jasinowski said.
 Among the negative effects of a BTU Energy Tax:
 -- The direct and indirect costs would increase the energy costs of the typical family of four by about $500 per year.
 -- U.S. competitiveness will be damaged because U.S. production will have an additional cost not shared by foreign production.
 -- Job losses of more than 600,000 by 1998 because of the tax.
 -- Nearly $40 billion of the estimated $72 billion in increased revenues from the BTU tax would be paid by business, including additional transportation costs.
 -- Cash flow of companies will be reduced, shrinking the pool of capital necessary for capital investment.
 "Everyone loses under this proposed BTU tax because it directly hurts the American economy at so many important points. And let's not forget that since this tax is not rebated on exports, it condemns many of our exporting companies to second-rate competitive status in the world," Jasinowski said.
 "This particular tax is a jobs killer, and it will hit the South and West especially hard. The overwhelming support we are seeing for our effort should be enough to convince the administration to drop this anti-competitive energy tax proposal."
 -0- 5/5/93
 /NOTE: A list of the members of the Alliance is available./
 /CONTACT: Andy Smart, 202-637-3090, or Paul Huard, 202-637-3075, both for the Affordable Energy Alliance./


CO: Affordable Energy Alliance ST: District of Columbia IN: OIL SU: EXE

TW -- DC013 -- 4918 05/05/93 13:52 EDT
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Date:May 5, 1993
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