U.S. ENERGY SECRETARY RULES OUT GASOLINE TAX
Energy Secretary John Herrington
said he would rule out a tax on gasoline as one option to help
avert what his departmet has called the threat of increased
reliance on foreign oil in the coming years.
    He said at a news conference that any recommendation he
would make would have to increase domestic production, not
cause widespread economic hardship and have a minimal cost to
the U.S. taxpayer.
    On the grounds of increasing production, he said, "I would
rule out a gasoline tax."
    Herrington also repeated he would rule out an oil import
fee because of the widespread dislocation it would cause -- the
loss of about 400,000 jobs nationwide due to higher oil prices
and a drop in the gross national product by about 32 billion
dlrs.
    He said an increased depletion allowance, to 27.5 pct, on
new and enhanced production of oil and natural gas would be a
cheap way to spur domestic production.
    He estimated this cost at about 200 mln dlrs a year.
    Herrington proposed the increased depletion allowance to
the White House Tuesday but the White House reaction was cool.
    The White House said it would study the proposal, but was
generally oppposed to altering the national tax code, just
passed last year.
    Herrington, asked his reaction to the White House reaction,
said, "If I were the White House, I would be cool, too."
 Reuter
