The Clinton Administration recently proposed a modified Btu tax on energy. Before the announcement, a variety of taxes was being considered, both broad-based (e.g., Btu, carbon, ad valorem and VAT) and fuel-specific (motor fuels and the oil import fee). Some of these are still being considered by Congress and others.
An analysis of these tax alternatives, including Clinton's proposal, was conducted by DRI/McGraw-Hill using its energy and macroeconomic models. All of the taxes were modelled to collect approximately $30 billion in gross revenues in 1997. The analysis found that: