Group says gas decontrol will erase tax-cut gains
The administration's push for natural gas decontrol will wipe out any gain most Americans may get from their tax cut, the Energy Action Educational Foundation charges.
The consumer group compared the tax cuts expected by families at various income levels with the direct and hidden cost increases that would come from an administration plan to accelerate gas price decontrol. For example, a family with a $20,000 annual income in 1982, 1983, and 1984 will pay $1,060 less in taxes but spend $2,600 more for direct and indirect natural gas costs. For a household living on $10,000 a year, the tax cut of $200 would cover just one-tenth on its gas bill increase, according to the report.