CARTER TO USE TAX PENALTIES IN ENERGY PROPOSAL

WASHINGTON-President Carter will announce his proposal to use the federal tax system as a means of forcing Americans to conserve energy on Monday, April 20.

Although no specific details have been officially released, according to Congressional sources the proposal will probably include the following points; a five-cent-a-gallon increase in federal gasoline taxes above the current four cent levy; allowing the domestic crude oil prices to rise gradually to levels set by oil exporting countries; a tax starting at about $400 on cars which get low gas mileage; and tax incentives to homeowners who install insulation or improve existing insulation.

White House press secretary Jody Powell said White House energy researchers have established that the energy shortage is worse than is generally recognized.