The Senate Finance Committee's version of President Carter's proposed windfall tax on crude oil would lead to 500,000 barrels a day more production in 1990 than would the House-passed version, the Congressional Budget Office said yesterday.
The added oil production from the Senate, bill, however, would mean foregoing $127 billion in federal tax revenue during the next 10 years that the House bill would collect, CBO estimated.
A report comparing the effects of the two versions was released yesterday on the eve of this week's Senate floor debate on the tax.
In the report, CBO said oil producers in the United States would get $832 billion in added revenues during the 1980s as the result of decontrol of crude oil prices ordered by President Carter if no new tax were levied.
If either version of the [TEXT OMITTED FROM SOURCE] is passed, CBO said oil production would drop in 1990 from 7.9 million barrels a day -- the estimate with no tax -- to 7.6 million with the Senate committee bill and 7.1 million with the House bill. With the lower production levels, would come a smaller increase in producer revenues.
With no new tax on crude oil, producers would still be paying about $198 billin in federal income taxes on their added revenues and $115 billion to state and local governments. Altogether, they would pay 38 percent of their added revenue in taxes, CBO estimated.
Under the House bill, which President Carter has endorsed, new revenues over the decade would be $723 billion. Governments at all levels would get 75 percent of that in taxes, with the federal government taking $443 billion and state and local governments $99 billion.
The Senate bill, on the other hand, would give producers an estimated $793 billion in added revenue, of which the federal government would take $316 billion and state and local governments $112 billion, or a total of 54 percent.
"The production advantage of the Senate bill increases over time," CBO said, "primarily because the House bill stimulates production from known oil reserves during the early 1980s and thus depletes these reserves faster, while the SENATE finance Committee bill stimulates exploration and development of new reserves."
The Senate bill would exempt from the tax -- which is an excise tax to be levied on each barrel of U.S. crude oil -- any discovery made after January, 1979 incremental production from so-called tertiary recovery techniques, "heavy" oil that requires additional efforts to produce, and the first 1,000 barrels a day of "stripper" oil produced by independent producers. A stripper well is one that produces 10 barrels a day or less.
The two bills tax different categories of oil somewhat differently, and part of the tax that would be imposed by the House bill would continue indefinitely.
The Senate bill would create three trust funds into which the tax receipts would flow. One-fourth of the tax, up to $15 billion would go into a transportation trust fund; one-half wouls go into an energy assistance trust fund for low-income individuals; and the remainder would be used for general tax relief.
The House bill would set up a single trust fund but does not specify how the money should be used.