European Stars and Stripes (Newspaper) - February 20, 1993, Darmstadt, Hesse                                . Tic staws 8hw1s Feigt 7 bid to upgrade Federal pay in danger by the  pot Washington if Congress up proves the Federal pm Reese it will it Back if not destroy the decades Long bipartisan drive to he government salaries to Hometown private sector pay. Under the system it up by Congress and the Bush administration the govern ment would begin geographic based pay next year. It involves Basic pay raise for allem Plo yees stated for 2.2 percent plus locality adjustments where appropriate new England reacts coolly to Energy tax Boston a businesses and homeowners in new England complained thursday that president Clinton s pro posed Energy tax unfairly targeted Oil a Staple fuel of the Region s Homes and fac tories. They said the tax would Jolt a Region still struggling to climb out of an economic morass driving up Energy costs to companies and utilities and raising Consumers fuel Bills. It s not Good news for a Region that s already suffering at the end of the pipe line said Emmanuel Forde spokesman for Northeast utilities in Berlin conn., new England s largest Utility. But a study by the accounting firm of Price waterhouse found that the Energy tax would Cost Massachusetts residents an average of $167 a year or about $5 less than the National average. Price waterhouse officials estimated the tax would raise the Cost of heating a Home with Oil by about $62 a Winter. But they said that would be offset by the fact that people in the Region drive fewer Miles than in less congested parts of the country. The tax which could Cost average american families up to $200 a year if it takes full effect by 1997, is pegged to the amount of Energy Content released by a particular fuel measured As British ther Mal units or Btu. The tax would be levied on virtually All forms of Energy. It would hit Coal natural Gas and nuclear Energy at a rate of 25.7 cents per million Btu and Oil at a rate of 59.9 cents per million Btu according to Treasury department figures. Treasury officials said the Levy would raise gasoline prices by Ivi cents a gallon Home heating Oil by 81/4 cents a gallon natural Gas by 26 cents per thousand cubic feet and the average monthly elec tric Bill by $2.25. More than half of new England Homes Are heated with Oil. Carl Vitagliano whose Braintree mass., House is among that number said he in t Happy about the Prospect of paying higher fuel Bills. Much it to Washington i c president Clinton would delay the raises until 1995. And he would change the formula to make the Basic raise less generous. Currently the Basic Federal pay raise ii set at half a percentage Point less than the me in private sector pay. Under thai formula the Basic 1994 Feder Al pay raise would be 2.2 percent since Industry pay was up 2.7 percent. Under the Clinton plan the Basic Federal raise delayed one year would be 1.7 per cent or 1 percentage Point less than the actual Industry inert am the pay delay will ave a lot of Money. It will also put government workers far ther behind their private Tector counterpart and have a permanent Impact on salary linked benefits like the savings plan life insurance and pension Bene fits. It also will make catching up even More expensive. Government data indicate that Job for Job Federal pay trails Industry 20 percent to 30 percent. Rapt listener Julia Chancellor of St. Louis holds a copy of a new direction a summary of presi Dent Clinton s proposed economic plan while listening thursday to the president s address at Union station in St. Louis. The City was Clinton s first Stop in his Effort to sell his economic plan. The summary pamphlets were handed out at the speech. Clinton takes time for kids on to special by the Baltimore Sun president Clinton who received some pretty Good reviews for his prime time performance this week moves into kids television today with president Clinton answering children s questions. We re taking the president up on his Promise to stay in touch with the american people and continue the dialogue he began during the Campaign said Anchorman Peter Jennings who will moderate the live show produced by Abc news. It will be shown on . At 4 30 . And on an to at 5 30 . The live broadcast will be the fourth Abc news special with Jennings that Speaks directly to Young people about the issues and challenges they face. The others dealt with Young people s thoughts and fears about the persian Gulf War aids and prejudice. The format of the 90-minute show is to be that of a live town meeting held at the White House with an audience of 40 children from around the country said Patrick Roddy the show s executive producer. While the show is targeted to viewers 8 to 15 years old this is really a show for the whole family Roddy said. Viewers who have watched the other Abc news specials know that serious does not have to mean Dull television. Besides the give and take of the live for mat the special also will include a Seg ment featuring Jalee White in character As the nerdy Steve Urkel of the Abc sit com family matters. Roddy said Urkel is used in a taped segment to help explain the Way the political process works in an entertaining Way. The segment finds Urkel on Capitol Mill trying to get a Bill passed that As sures clean and Good air for All living  along the Way Urkel gets some help in steering his Bill through Congress from Senate minority Leader Robert j. Dole r-kan., and House speaker Thom As s. Foley a Wash. Longer we take to clone the tap. The More expensive it will be when the process is started a government pay expert said thursday m politicians de cide the Economy can t afford a 2.2 per cent raise now to an off year Are they going to vote for a higher catch up a l us higher geographic raises that would ave to be approved in election year 1994 to be effective in 1995? my feeling is that once this process is taken off the track it May be derailed  gloom doom descending on companies by the associated Tress in Swank restaurants and exclusive clubs they Are grumbling. In Gas refinery plants and Fortune 500 boardrooms they arc fretting. And in lobbyists offices they arc wondering How bad will it be the Belt tightening proposed by presi Dent Clinton would put the squeeze on a diverse Range of industries and occupations from the most modest worker to the giants of Commerce. The most direct blow would be Felt by companies with taxable income above $10 million whose corporate tax rate would jump from 34 percent to 36 percent. Deductions for entertainment would be Cut Back or reduced and write offs for lobby ing expenses dropped. But Clinton s plan announced wednesday also could rattle the already struggling defense Industry and Force higher costs on companies with Large Energy needs transportation steel paper Ana aluminium makers. The most gloomy scenario posed by executives and analysts would mean Plant closings and layoffs. In san Francisco Energy consultant Bruce Pasternack said gasoline refiners would face rising costs under proposed Energy tax increases. The Cost of crude Oil needed in gasoline manufacturing would Rise under the plan which would add More than 7 cents a gallon to the Price by 1996. Pasternack said refiners May not be Able to pass along All their higher costs. It s not a big increase when you con Sider what some people were talking about during the Campaign but you Are going to hear a lot of complaints said Pasternack a manager in the Booz Allen & Hamilton inc. Consulting firm. Airlines Are particularly worried about higher fuel costs at a time when they Are struggling. We re kind of holding our breath to see what happens said sue Putnam a spokeswoman for Reno air inc. In Nevada. Fuel accounts for about 18 percent of Reno s costs. But Putnam said the Clinton proposal has not delayed the Carrier s plans to double its Fleet of five md-80 jets. All Energy intensive businesses including the airlines Are going to suffer. This proposal is just More nails in their coffin said Paul Craig Roberts at Georgetown University s Center for strategic and International study another troubled Industry defense contracting could be left to scramble for even fewer Federal dollars under the Clinton proposal to Cut $76 billion from the defense budget by fiscal 1997. The principal losers would be Compa Nies involved in Only one major program such As general dynamics corp s my tank said Brett Lambert vice president of defense forecast inc., Washington based defense Industry analysts