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There are other inherent difficulties associated with an excise tax. First, it is 

 imposed early in a product's manufacturing and marketing, meaning that the initial 

 additional tax imposed may well double or more by the time the product passes through 

 the distribution channels and is finally sold at retail. An excise tax also penalizes 

 quality, even if that quality adds no burden - or even reduces the impact - of the 

 activity on government or the environment. Excise taxes are especially inappropriate 

 for higher cost items with long useful lives, since it is virtually impossible to recover the 

 full operational costs over the product's life at the initial time of sale. 



Administratively, it will be exceedingly difficult to apply the tax equitably across 

 all the product lines to be affected. The experience of the Wallop-Breaux tax 

 documents how imported product values may be manipulated to effect a financial 

 disadvantage for domestic producers. Given the fluid nature of the list of taxable 

 products, as well as the difficulty in defining some products, there will inevitably be 

 efforts to avoid the tax through creative classification of products. (Hiking boots could 

 become "casual footwear," for example, or backpacks could become "bookbags.") We 

 fear that the "Teaming" tax system would create artificial winners and losers in the 

 marketplace, based not on economic forces but rather on governmental regulations. 



It is likely that some, probably small, manufacturers will bear an excessive 

 administrative burden in trying to comply with the paperwork of the tax, while other 

 small enterprises may fall through the cracks and pay no tax. 



Perhaps most importantly, the government-imposed tax may serve as a 

 disincentive for companies to continue to develop voluntary, private initiatives that are 

 emerging in today's marketplace. Successful cause-related marketing, where portions 

 of product sales are donated to the protection of parks, trails, rivers and other 

 resources offer tremendous opportunities for sizable, voluntary contributions. These 

 initiatives can be extremely flexible, targeted and attractive to customers. Customers 

 directly see and understand the relationship between purchase of a product and 

 support for a resource. We favor allowing potential competitive advantages within the 

 private sector to drive innovation in attracting donated funds. The Coleman Company 

 is active in this area. Among those programs which we now provide with substantial 

 financial support, or have supported in the recent past, are: 



•Tread Lightly 



•Leave No Trace 



•wow-Wonderful Outdoor World 



•American Discovery Trail 



•Continental Divide Trail 



•Appalachian Trail 



•President's Commission on Americans Outdoors 



