
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, May 29, 1993                   TAG: 9305290162
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: The Baltimore Sun
DATELINE: PHILADELPHIA                                LENGTH: Medium

CLINTON YIELDS ON ENERGY TAX

In a deft pirouette one day after his crucial victory in the House, President Clinton began Friday to back away from the most controversial part of his economic program - a huge nationwide energy tax.

At the same time, there were indications in the Senate that his critics were giving ground as well.

The Los Angeles Times quoted unidentified White House and Senate sources as saying Clinton has decided to abandon most elements of the energy tax and accept an 8-cent gasoline tax increase in its place to win Senate approval of his embattled economic agenda, which the House passed by six votes Thursday.

His original idea for a tax on British thermal units would affect nearly every form of energy.

Clinton told a cheering audience of about 2,000 Friday that he had proposed the energy tax to deal with larger-than-expected budget deficits. But he signaled a compromise by telling the audience, "You've got to decide whether it's worth it."

Twice in his speech in Philadelphia, Clinton enunciated "the principles" a final budget package must contain. Neither time did he mention the energy tax.

The principles included:

Upper-income Americans must pay higher income taxes.

Annual budget deficits must be lowered by $500 billion over the next five years.

The tax code must be changed to promote creation of jobs, especially in cities.

Incentives should be provided for Americans to move from welfare to employment.

by CNB