Evening journal., 1918-08-01
S240,00O,00O TAX
ON AUTO owners
Two Cents a Gallon Levy
on Gasolene Also Voted
by Committee
10 PER CENT. ON
PRICE OF CARS

WASHINGTON, Aug. i-Automobile
owners are to contribute a generous
sAare toward winning the war. The
nrst consumption taxes TO be written
into the new revenue law were framed
by the Ways and Means COMMITTEES
and affect both the owners and users OF
motor cars.
Motor owners will have to pay a
tax ranging up from $40, according 10
the original retail list price OF their
machines. In addition tax on gaso-
line Of two cents a gallon was decided
upon. Taxes on motor owners are eX-
pectsd 10 produce about i25,000,0OO an
nuslly. The tax on gasoline consump-
tion is counted on TO produce between
100000 ond s45.OO0,OO0 each year.
SO Tax on All FlivVers.
The tax favored by the majority Of
the committee to be imposed on auto
mobile owners as 10 was written into
the new law today is to be graduated
as follows:
On machines whose retail list price
was less than S5OO-si0
Between $500 and s750-si5.
Between $3.50 and si,OO0-S20.
Between $1,000 and Si,5O0-s30.
Between $500 and s2,0O0-s40.
Between $1,000 and s2,500-s50.
Between $500 and s3,O00-S6O.
On $500 additional in the cost OF the
machine over $1,000 an additional tax
Of $40 IS imposed.
The rates are exactly double the
rates written into the last revenue bill
bxr fha Gepofa Finance Couanofffaa 1rhf fa
tax was stricken from the bill before Il
became law. The tax on gasoline was
adopted without much debate.
Though the committee made a differ
entiation In favor Of motor trucks in
imposing a lower rate Of tax on manu-
facturers Of motor trucks than on man
ufscturers 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 for the gas used.
The committee also tentatively de-
cided TO levy a tax on motorcycles OF
3 per cent. This price Will be levied on
the manufacturer or producer. Owners
OF motorcycles although they will pay
the tax In buying motorcycles, wiz not
have an additional tax for owning them
imposed on them, u in the case of su.
tomObile owners.
Chairman Kltchin 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
automobile owners own them for their
own pleasure. 10 was agreed. and there
fore the general class OF automobiles
should be taxed Owning an automo-
bile, the committee believes, Is clearly
a luxury. Evidently owning a motor
truck is believed to be a luxury, too,
because no variation OF the tax in favor
OF trucks was considered.
The tax on gasoline was adopted
more unwillingly. Some Of the com
mittee believed this tax 20 be an un-
necessary imposition and hardship on
a great many business men already
taxed TO the limit. but, faced with the
enormous shortages in the tax revenue,
the Treasury has asked for, these men,
bers finally were won over.
The committee is still lighting shy
OF tackling the suggested luxury taxes
sent up by the Treasury Department.
Il had the purpose OF the whole
committee to avoid the use OF sub
committees in handling the tax bill
this time, but this practice was deviat-
ed from when Representative Hun
o (Tennessee), Helvering lNlinnes0t1)
rn nj ! -
ed a subcommittee TO consider the
schedule Of luxury taxes sent to the
WAYS and Means Committee. In this
report the subcommittee Will recon-
mend 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 today, Chairman
Kitchin confirmed the explanation OF
the uselessness a 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 Treas
ury. but IL was made plain that such
an additional tax is considereS alto
gether unnecessary in view OF the
fact that the excess profits taxes al
ready agreed on are generally regard
ed as sufficiently heavy to take the
"pronteering" out Of any business
whatsoever.
The committee again considered the
tax on tobacco. Il was discussed and
the general sentiment apparently was
In favor OF increasing materially the
tax on tobacco manufacturers, i'm
porters and producers and imposing
a retail sales tax. What these taxes
will be is uncertain, their determine