TAXATION AND THE POLITICAL ECONOMY OF THE ENERGY "CRISIS"

The problems inherent in taxing gains and losses (generated by the so-called energy crisis) on domestic oil and natural gas are political rather than economic. A solution for allocating energy resources could be achieved by deregulating markets and energy prices. Energy policy options, producer/consumer conflicts, and the extent to which the market system should be used are evaluated. A political analysis of president Jimmy Carter's energy tax program is outlined. Ways to modify the price/profit control system to approach market conditions should be found.