Windfall Profits Tax Legislation Statement by the President.

The House and Senate conferees have taken important steps toward reconciling their differences on the windfall profits tax. The basic agreement reached on revenue levels brings us closer to enactment of a windfall tax which will pay for vital investments in American alternatives to imported oil.

Progress on the tax has been painfully slow. First we were promised action by October, then by Thanksgiving, and then by Christmas. Although the Congress made progress before it adjourned, we still do not have a windfall profits tax in law.

When I announced my decision to phase out controls on domestic crude oil last April, I made clear that the windfall profits tax was an essential companion to decontrol. The schedule was carefully set to encourage American energy production and to give the Congress plenty of time to act on the tax. It is my present intention to continue the necessary general decontrol schedule, but I will postpone further increases in the price allowed for marginal wells until a windfall profits tax satisfactory to me is on my desk.

It must be clear that the costs of delay are high. I am determined that the American public will be protected with a windfall profits tax which is fair and which provides the funds we need to invest in our energy future.

The conference committee and their staff will continue work on the tax between now and the start of the new congressional session to ensure that precious time is not lost. It is also critical that the conferees on the energy mobilization board and the energy security corporation complete their work without further delay. We must not dissipate our opportunity for actions during this time of crisis. The eyes of the world are focused on us to see if we meet our energy challenges. What Congress does over the next few weeks will determine whether this country will meet its challenge.

We can and must send a strong and accurate signal that we, the American people, are determined to cut our dependence on imported oil. The windfall profits tax, the energy mobilization board, and the energy security corporation are critical to this effort, and we will not shirk our duty.