Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1923-07-20

| Richmond, Va, July l5.-The
bond plan of paying the interest
md sinking fund on $50, 100000
bond issue, as set forth in the
referendum bill, provides for a
D gasoline tax. The bond re-
erendum is specific both as to
he S50,0O0,0O0 OF bonds to be
ssued and the dedication of the
present ten cent property tax and
a &c. gasoline tax for tile pay
ment Of interest and sinking
| und. No mention, however is
made as to when the bonds will
ne paid off. III preparing the re-
ferendum bill the bond leaders
in the Senate and House no doubt
had i'll mind that the present
bonded Indebtedness of Virginia
| will not be paid until 167 years
from the time that the first bond
| Twas issued, and therefore thong t
1t best TO have the law s:len: as
10 when the new bonds will be
tpald Oft. One hundred years has
lal1eady elapsed and sixty seven
more years will pass before tile
asst of the present bonds is re-
tired at the present rate of retire
lnent. Therefore, in voting for
the bond referendum there is no
guarantee or assurance but that
the past experience Of Virginia
with reference TO bonds, may not
be repeated, and So 90 in interest
paid for every dollar obtained in
bonds.
The only difference in taxation
between the pay-as-you-go plan
and the bond issue plan is the
difference between &c. gasoline
tax and Sc. gasoline tax, which.
translated into dollars means
difference OF only $3.50 per ma
Chine. per year at the average
consumption of gasoline. Under
the pay as-you-go plan. however,
alter the state system is com.
pleted i'll seven years, the gasoline
tax can be reduced or eliminated
| o diverted to the construction of
mauy thousands Of miles of inn
portant farm-to-market roads
Under the bond plan, the DC.
gasoline tax must be dedica ted
for an indefinite period tnot less,
however, than the length Of time
the bonds run) for the payment
lof interest and sinking fund.
Both sides. therefore, recognize
1.-THE justice and fairness of a gaso.
line tax as the basis of revenue
for constructing the highways
| of Virginia either by bond issue
or the pay-as you-go plan. Other
states have likewise recognized
the fairness Of this tax, and al
ready six states have in operation
a SC. tax-ArkauSaS 3 cents for
state and 2 cents tor county
roads, North Carolina, Oregon,
South Carolina, South Dakota,
aud Virginia-as reported by the
III. S. Department OF Public
Roads. The State Of Arizona
has adopted a Sc. tax, but the
collection of this tax has been
suspended pending an adjudicat-
ion by the courts. One state,
Utah, has a 21ac. tax, eleven
states have &c. tax, and severn
teen states have a 1c. gasoline
tax.
The gasoline tax is one of the
faireSt taxes that has ever been
devised for the construction and
maintenance of roads, as it
places the burden directly and
proportionately upon those who
destroy the roads. The average
tax is only $3.50 for a 1c. tax per
machine per year. 1t is a tax
that automatically benefits those
who pay it, because the better
the roads the less wear and tear
OH the machines, and the less
the consumption OF gasoline per
mile.
Ii has been charged that the
gasoline tax is class legislation.
The bond advocates, who approve
of a &c. gasoline tax for tile pay
nept of interest. are opposed to
the payment of Sc. tax applied
directly 10 the roads. The bond
leaders i'll the General Assembly
did their utmost TO defeat the
gasoline tax, knowing thstif
they succeeded, source of large
new revenue for roads, Which
makes the pay-as-vou. go plan a |
practical, workable plan, would |
be defeated. 1t is not class |
legislation, as no one class owns
automobiles exclusively. Auto
mobiles are owned by all the
people of the State, of every |