Bode proposes temporary tax cut

Wednesday, March 8th 2000, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) -- Denise Bode, Oklahoma Corporation Commission member, called today for temporary gasoline tax cuts at the state and federal level to aid consumers during a time of high prices.

But Bode did not have a specific proposal, nor has she discussed the plan with Gov. Frank Keating or state legislators. She told a news conference she wanted to start the discussion on a possible temporary tax cut, while admitting it would be "a difficult process."

She envisioned tax cuts working like the temporary reduction in Oklahoma's gross production tax enacted last year to help the oil industry during a time of low oil prices.

Bode said Oklahoma consumers pay a combined 36 cents a gallon on gasoline -- 18.4 cents federal and 17 cents state. So at $1.35 a gallon, 35 percent goes to the government, she said.

She said that although most of the taxes go for highway maintenance and construction, some of it is being diverted to other purposes both by both the state and federal government.

She said a cut of 5 cents a gallon would "make a huge difference" to consumers. Bode criticized Clinton administration talk of possibly selling oil from the Strategic Petroleum Reserve in response to high prices.

She said that will hurt domestic producers and "is also unlikely to reduce the price to consumers like a tax holiday would." "Action must be taken to moderate the impact on consumers and to encourage the domestic exploration and production of oil and natural gas," Bode said.