Saving the earth without breaking the bank - Washington Report - Column

Discount Store News, Feb 1, 1993 by Ken Rankin

With the Clinton administration placing a higher emphasis on environmental issues, the nation's discounters can look forward to an unprecendented flow of legislative and regulatory proposals in this area.

That's not necessarily bad news, of course. After all, saving the planet is a worthwhile objective.

The real question is: can the government protect the environment without breaking the bank.

Before you answer, listen to what's on the table here in Washington.

Environmental activists are actively cranking out reports, and lining up political support for a series of new federal fuel taxes that would make it significantly more expensive for retailers to operate stores, and for consumers to drive to them.

What's more, these fuel tax proposals are generating interest from market-oriented economists who regard them as preferable to environmental regulations.

As a bonus, they see new federal fuel taxes as cash cows that will generate sew revenues to reduce the budget deficit.

The so-called "global warming tax" proposal is a case in point. This approach--a new federal tax on oil, coal and other energy sources that emit carbon dioxide--would generate $100 billion in new revenues over the next five years, Congressional supporters predict.

What they don't emphasize is that this $100 billion tax bite will be passed on to businesses and consumers through higher prices for heat, electricity and most manufactured goods. Another possibility certain to come under serious consideration in Congress this year is a sharp and painful increase in the federal gasoline tax.

Every one cent increase in the federal gas tax raises $1 billion in new tax revenue--not enough to make a dent in the deficit, but enough to exercise the salivary glands of every big spender on Capitol Hill.

Oil import fees--an idea that has been kicking around since the Arab oil embargo of the 1970s--are also being refloated this year as an environmental proposal. The bottom line again: increased prices for consumers and higher transportation and operating costs for businesses.

Environmental legislation affecting discounters will also be surfacing in state legislatures this year.

To finance environmental programs, many states will consider new "green" taxes, including controversial "advance disposal fees" imposed on products or packaging that doesn't satisfy minimum standards for recyclability or recycled content.

In other states the focus wi be on proposals to enforce packaging recyclability goals through government mandates.

For discounters, however, the most controversial type of environmental legislation likely to come to a vote this year are so-called "leave behind" bills.

Under these proposals, consumers would be entitled to "leave behind" any unwanted packaging at the point of purchase for collection, storage and disposal. It's one environmental scheme that could literally leave the nation's discounters holding the bag.