Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-02
AUTO OWNERS HARD HIT
BY WAR REVENUE PLANS
Senate Committee Fixes Gradu-
ated Scale of Taxes for
Pleasure Machines
WASHINGTON. June 2.

WASHINGTON, June ?.
Every automobile owner in the United
States will contribute 20 the cost Of the
war.
The Senate Committee on Finance .ate
yesterday voted direct (ax on automo-
biles into the war tax bill. A graduated
scale Of taxes was provided in the new
section, which replaces the direct ad va
loren tax imposed on the manufacturers
Of motor-drven vehicles.
There is only single exception-motor.
driven vehicles used exclusively for com
mercial transportation, such as trucks and
baggage vans, are relieved from the opera.
tion of the section. Motorcycles are taxed.
The following IS the scale:
Automobiles whose original price was
less than $500, $3.50 a year
Automobiles whose original price was
more than $500 and less than $1,000, $40
a year.
Automobiles whose original price was
more than $1,000 and less than $4,000, SIS
Automobiles whose original price was
more than $4,000 and less than $4,000, $50
Automobiles whose original price was
more than $4,000. S25.
Motorcycles $3.50 a yeAr
The entire levy - estimated TO produce
more than S41,0OO,Osa in revenue.
The total nur.ter Of automobiles of the
unexempted classes is 1850, 900 The tax
will be in the form of a car license and
tag VIII be furnished on the payment
OF the license, which becomes an attach
ment of the car and not license Of
the owners. Automobiles sold from hano
to hand In the course of the fiscal year
VIII pay no new tax by reason of new
ownership.
To the owners of cars of more or less
| ancient vintage the tax regulations carry
the Following crumb OF comfort: For each
| year of the use of the car up to five years
| there VIII be a remission of 10 per cent of
the total tax. The owner Of a car valued
| at less than $1,000 and more than $500 II
| the car has been used one year will pay
| only 80 tax, and the owner Of motor
| driven veteran of the crop of 1911 or earlier
will pay only - for his tag
| The con."1Ittee tentativefy amended that
| section of the bill providing n tax on ad-
| missions to shows, theatres, circuses, ath-
| letic exhibitions and other forms OF
| privately conducted public entertainment
| by remitting the per cent admissions tax
| on all motion pictures entertainment for
which an admission Of twenty-five cents OF
Senator Penrose.
As corollary to the adoption of the
consumption taxes on sugar tea coffee and
cocoa an amendment repeating the draw.
back enactment of the Underwood -Slmmon,
law was adopted. Under its terms the
saying Tor the ensuing fiscal year in money
which, under the drawback payment law
would be paid to sugar refners out Of the
United States Treasury, will be about S16.
O00, 900.
| The committee amended the phraseologN
Of the existing income tax law so that here
| after corporations are instructed to give in
formation from the source" as to income,
of corporations or individuals there derived
instead Of Withholding the tax on such in
comes. This is made applicable as in tn,
existing law, only to sums in excess o.
$500 above the exemption.
The committee adopted the House sched
ule of internal revenue taxes on tobacct
and tobacco products with the exception
of the cigar schedule. Under this captiol
the following taxes will be levied:
Cigars manufactured to sell for less thai
four cents, no increases. Cigars manufac
tured to sell for more than four cents ant
less than seven cents. 81 additional a thou
sand from more than seven cents and les
than twelve and one-half cents, SO a thou
sand for more than twelve and one-hal
cents and less than twenty cents, IS
thousand, and to sell for more than twent,
cents, 81 n thousand.