History for Chron

Gov. Dixy Lee Ray lambasted a proposed federal gasoline tax that was designed to prompt drivers to conserve petroleum.

Ray said she considered the measure “taxing for all the wrong reasons,” in an address to the Western States Association of Tax Administrators.

The governor also questioned the federal revenue-sharing program, calling it an inducement for local governments to subject themselves to federal restrictions on how they spend those funds.

“This trend leads to federal domination,” she said.

A deputy comptroller’s testimony to a U.S. Senate committee contradicted President Jimmy Carter’s recent statement that he only knew of one financial problem related to Budget Director Bert Lance.

The comptroller testified that Carter had been briefed in December about Lance’s irregular financial dealings.