BARGE FUEL TAX INCREASE TO AFFECT ALL AMERICANS

The development of this nation, much like the development of this immediate region, would not have been possible without a mighty network of inland waterways. In a time when neither rails nor roads criss-crossed the land, these rivers were conduits for discovery and commerce. These days, rivers remain invaluable in the transit of goods from place to place, but this business is threatened by actions in Washington, D.C. We believe the proposed tax increase on waterways fuel will cripple the barge industry and hurt consumers, and we hope the measure never becomes law.

The importance of the river as a means of transporting freight is obvious to most people in Cape Girardeau. If the tax increase suggested by the Clinton administration is imposed, more people around the nation will probably realize the impact of this industry; unfortunately, that will be because prices of goods shipped by this means will increase.

While our capacity for surprise at governmental gall should long ago have been exceeded, this proposed tax increase is an eye-popper: consider 525 percent above the current rate. If the fuel used by inland waterways towing companies was so drastically undertaxed that this is required, Americans should be howling about the incompetence of legislators who let the barge industry get away with such a thing. Of course, that is not the case. The mood of the new administration is one of taxation, and the raised barge fuel tax might just be a case of "outrageous fortune" where the federal treasury is concerned.

Just how outrageous is spelled out in the numbers. According to river industry sources, the tax per gallon of diesel fuel would increase from 19 cents to $1.19. A 7,500-horsepower towboat burns about 7,500 gallons of fuel a day; the math is easy and staggering ... an additional $7,500 in costs each day. And who will pay? The barge industry to some extent, since those with freight to move might abandon the river for rail or trucking options. Ultimately, though, all Americans will pay this tax, since the barge lines (like all other businesses) will pass along these higher costs to consumers of goods. And if barges are hauling wheat, and the shipment of that grain costs more, then somewhere along the line people are going to pay more for a loaf of bread.

If the Clinton administration wanted to impose a bread tax, Americans would revolt. With the barge fuel tax increase, the White House disguises the proposal, hopes to cause little uproar and gets the same result.

So, here's the deal: Go ahead and revolt. The proposed tax increase on diesel fuel towing companies use is absurdly high and will damage an important industry. The president has distanced himself from the controversy this proposal has touched off, but tax writing in Congress is under way in earnest this week. This tax increase should not be allowed to stand. True, it hurts a particular business that is near and dear to Cape Girardeau. But, above all, it hurts all Americans.