The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-01
&c. A GALLON TAX
ON GASOLINE VOTED
House Committee Also Frames
Graduated Levy on Auto
mobiles.
WILL HIT EVERY OWNER
Kitchin Accepts "Sun's" Elk
PLANTATION of Futility Of
War Profits ImpoSt.
SneciaI Dssrnfch to TIE Soy.

Special Despafch TO The Son.
WARRINGTON, July 81. - Automobile
owners are to contribute generous
share toward winning the war. The mrs.
consumption taxes to be written into
the new revenue law were framed TO-
day by the Ways and Means Committed
and AFFECT both the owners and users OF
motor cars.
Motor owners will have to pay a tar
ranging UP from $40, according to the
original retail list price OF their ma
chimes. In addition tax on gasolene
OF two cents a gallon was decided upon
Taxes on motor owners are expected tc
produce about s125. 100000 annually
The tax on gasolene consumption Ia
counted on to produce between S4o.ooo'-
600 and $4,000, 900 each year.
The tax favored by the majority OF
the committee to be imposed on auto
mobile owners as It was written into the
new law to-day Is to be graduated as
follows:
on machines whose retail list price
was less than S500-s10.
Between $500 and s75O--s15.
Between $3.50 and s1.O00-S2o.
Between $1,000 and s1.5o0-S30.
Between $1,000 and s2.o00--S4o.
Between $4,000 and 32.500-S5o.
Between s2.5OO and $3,000-s60.
On $500 additional in the cost OF the
machine over $4,000 an additional tax
of $40 Ia imposed.
The rates are exactly double the
rates written into the last revenue bill
by the Senate Finance Committee. This
tax was stricken from the bill before 1t
became law The tax on gasolene was
adopted without much debate.
Though The committee made differ
entiation in favor Of motor trucks in
imposing n lower rate OF tax on manu-
facturers of motor trucks than on man
ufacturers of passenger cars. the COM
mittee took the view that trucks were
quite as destructive to roads and that
the owners of trucks should bear the
same burden as the owners OF cars
used for merely passenger purposes and
should pay the tax for the gas used.
VIII Tax Motorcycles B p. C.
The committee also tentatively decided
to levy a tax on motorcycles of 5 per
cent This price will be levied on the
manufacturer or producer. Owners Of
motorcycles although they will pay the
tax in buying motorcycles. will not have
an additional tax for owning them i'm
posed on them, as in the case OF auto
mobile owners
Chairman Kitchin explained that the
automobile tax is in effect an excise tax
on owners Of automobiles and that this
tax does not apply to motorcycles
Sentiment in the committee was
plainly In favor Of imposing the tax on
automobile owners and little objection
was raised. The great majority OF auto
mobile owners own them for their own
pleasure. II was agreed. and therefore
the general class OF automobiles should
be taxed, Owning an automobile. the
committee believes. Ia clearly a luxury.
Evidently owning motor truck is be-
lieved to be luxury, too, because no
variation OF the tax in favor of trucks
was considered.
The tax on gasolene was adopted more
unwillinSly. Some OF the committee be-
lieved this tax to be an unnecessary
imposition and a hardship on n great
many business men already taxed to the
limit. but. faced with the enormous
shortages In the tax revenue. the Treas
ury has asked for. these members finally
were won over.
Kftchin Against War Pront Tax.
The committee is still fighting shy Of
tackling the suggested luxury taxes sent
the purpose OF the whole committee to
avoid the use OF sub committees in
harding the tax bill this time. but this
practice was deviated from to-day when
Rei, resentative Hull (Tennessee), Hell
vering (Minnesota) and Moore penn
sylvania), were appointed a sub-com-
mittee TO consider the schedule Of lux
ury taxes sent to the Ways and Means
Committee. In this report the sub-com-
mittee will recommend rates and the
proper taxes to be written into the bill
In lieu of the drastic rates urged by the
Treasury
In explaining the work Of the WAYS
and Means Committee to-day. Chairman
kitchin confirmed the explanation pub
lished in THE Sun OF the uselessness OF
imposing a war profits tax In addition
to the excess profits tax rates already
agreed upon. Figures are still lacking
to show how much additional revenue
such an added tax would bring into The
Federal Treasury, but II was made plain
that such an additional tax is considered
altogether unnecessary in view CT The
fact that the excess profits taxes already
agreed on are generally regarded as
sufficiently heavy to take the "profteer-
ing out OF any business whatsoever.
The committee again considered the
tax on tobacco. II was discussed and
the general sentiment apparently was
In favor OF increasing materially the
tax on tobacco manufacturers, import
ers and producers and imposing retail
sales tax. What these taxes will be Ia
uncertain, their determination awaiting
figures from the Treasury as to what
might be expected from the imposition
of various suggested rates.
The committee expects to proceed
with various miscellaneous taxes to-
morrow.