The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-08-01
WAR REVENUE TO
Be BOOSTED BY
GASOLINE TAX
Excise Tax on Automobiles
Also Adopted by Senate
Committee.

WASHINGTON, Aug. IA tax on
gasoline and an excise tax on the use
OF automobiles were adopted by the
Ways and Means ommittee Wednes-
day for the $4,000. 900, 900 revenue bill
The gasoline tax will be 2 cents a gal
Ion, to be paid by the producer or
manufacturer, The automobile tax,
which Is In addition to the 10 percent
tax on manufactures sales agreed up
on yesterday, will be paid by the own
er OF the car and viii range from $40
on q $500 car to $40 on a car costing
between $4,000 and $4,000.
Motor trucks will pay according to
the same schedule as automobiles. On
motorcycles there will be flat tax Of
IS year Another tax probably will
be devised to hit the dealers in used
cars.
1t is estimated that the tax on gaso-
line will bring In between SAC. 10000
Is estimated to produce not less than
SIPS, 100000.
These we're the only items on the
treasury departments luxury list that
were discussed by the committee We'd
nesday. In order to expedite action on
the other items the committee author
ized Chairman Kitchin to appoint a
subcommittee to go over the list and
determine what other subjects, If any,
should be taxed. The committee, con-
sisting OF Representative Hull, OF Ten
nessee; Helvering. of Kansas, and
Moore, Of Pennsylvania, was directed
to report to the full committee not
later than Saturday Of this week.
Two important things in connection
with the automobile tax are to be not
ed. First, the tax will be assessed &C
cording to the retail list price OF the
car at the time Of manufacture. There
will be no deduction for the age Of the
car, nor for the length OF time 1t has
been in use Hence a car costing 49,
600 In 1910 will pay just as much as
1918 model costing the same amount.
In the second place, the tax will be
an excise tax and will have to be paid
by the owner whether it Is in use or
not Car owners who might think they
could evade payment Of the tax by
laying their cars up in stheir garage
stripping it Of its tires and putting 1t
out of service, will be mistaken; the
revenue collector will get them just
the same because they own the car
even If it can't run around the block.
The schedule Of taxes agreed upon
Ia as follows:
Cars costing $500 or less, SO.
Between $500 and $3.50, SIS.
Between SIS Oand $1,000. 500.
Between 81 900 and $500, $50.
Between $500 and $4,000, $40.
Between $4,000 and $4,000, $50.
Between $4,000 and $4,000, $50.
Between $500 0and $500, $50.
Between $500 and $4,000, 500.
Between $4,000 and $4,000, 1920.
Between $4,000 and $500, $140.
In other words, the tax increases
$40 for every $500 after the $1,000
pcice is passed until 1t reaches $4,000,
when the increase is at the rate OF $50
on every additional $500 OF the cars
cost. The tax on car costing $780,
600 would be 1850, while the tax on
$4,000 car would be $3.50.
This schedule follows practically
the same lines as that which was writ
ten into the last revenue bill by the.
Senate Finance Committee and elimi-
mated in the conference, except that
the senate schedule made allowances
for the number OF years the car may
have been In service.
The Ways and Means Committees
plan will make it necessary to put in
the Dill some pToNlSloL ioi Il taA oi
the dealer in used cars, for the reason
that tte % percent tax Is collected
only from the manufacturers and the
excise tax must be paid by the owner
or purchaser.
Chairman Kitchin said that in all
probability some method will be found
Of taxing the used car dealers who
would escape taxation under the ar
rangement agreed upon.