Evening star., 1921-08-03
AUT0TAX
DECLARED BURDEN

Summarizing opposition of the
American Automobile Association to
any further taxation of motor. vehi-
cles. George c. Diehl, president of
that organization, in prepared
statement. declared today that. while
automobile owners are ready to pay.
their just proportion of taxation. they
are "unalterably opposed to the enact
ment of iniquttous and unsound legis-
lation which will INCREASE an already
burdensome and uneconomic tax.
According to data prepared by the
bureau of public roads," the state
ment said. pne man in every eleven
own motor vehicle. These 10.000.0Oo
owners are now paying several dis
tinct and separate taxes aggregating
$34S.76s.s7s. or s34.67 per car.
while it may be said that some
of these taxes are levied upon man
ufacturers and dealers. the fact is
that they are always passed on to
the purchaser. 1t follows that any
increase would add to the already ex
cessive burden charged against the
automobile user.
II these cars were luxuries we
would expect them to be among the
most heavily taxed of commodities.
but they are not, as is best evidenced
by the words of President Harding
in his first message to Congress.
when he said: The motor car has
in our political. social and industrial
life
Fundamentally the motor vehicle
is an element in transportation. and
if. as Secretary of the Treasury Mel
Ion has indicated. we should repeal or
cut down transportation taxes. then
certainly the burden on this factor
in highway transportation which last
year was estimated to have hauled
more than 1000, ,0000 tons of freight
and carried almost 5000. 100000 pas
sengers is entitled to the same con-
road and water operation is depend
ent upon delivery of the load. High
way transport is the indispensab bic
link of the chain.
Farmers Suffer Heavily.
The truth Of this statement is
perhaps best exemplifed by the fact
that practically one-third of all motor
vehicles are owned and operated by
farmers. who must today not only
tion but are also penalized for their
misfortunes through the taxes on
parts. accessories anu tires.
1T is unneces ssary to Indicate how
deeply the motor vehicle has pene-
trated into farm life. 1t is enough
to say that ~ per cent of all cars are
sold In towns having a population of
$4,000 or less So per cent inttowns
Of 5000 or less and 33 per cent in
towns and hamlets of 1000 or less.
That approximately 66 per cent of all
passenger cars owned and operated by
men having an income Of $4,000 or less
is another significant fact which should
give pause to those who contemplate an
increase as a tax against wealth.
There is. moreover. another phase
which thoughtful men will consider care
fully before seeking additional taxes of
this character. Today the entire cost of
construction and maintenance OF state
highways or of state bonds for road i'm
provement is levied against the motor
vehicle In many states. The pre-emption
Of this source OF revenue by the states
would be Immediately interfered with by
any further federal tax and would cause
strong and reasoned protest by state
legislatures, which already see many Of
their earlier sources Of revenue taken
over by the national government.
Summing up these facts. it Is the
belief of those in the American Auto
mobile Association that an unjust
burden would be added to the diff
ficulties already besetting the car
owner by the imposition of further
taxes. a burden which would in fact
add measurably to the cost of trans
portation and which could have the
same influence as high rates have had
in the railroad field-a gradual drying
up of revenue, which in time must
perceptibly affect the national in
come"