Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-03
PRESENT AUTO TAX
! DECLARED UNFAIR
40 Per Cent Above Total An.
ticipated When Rate Was
Enacted, Says N. N. A.

Automobile owners who stimulate
business by investing in motor trans
portation will be overtaXed by the
federal tax alone to the extent OF
30 per cent in 1924 unless the sharp
reduction advocated by the National
Motorists Association is adopted by
Congress, according to the brief sub
mitted by the y. NJ. A. to the House
ways and means committee asking a
reduction OF the federal taxes on
motor vehicles.
The y. NJ A. calls attention to the
fact that since the enactment of the
war tax on motor vehicles in 1921
there has been q 40 per cent increase
in The number of cars and a corre-
spending Increase in the tax revenue
derived therefrom.
I'm other words. if the objective
of the act itself were to raise Spe-
cific amount to meet necessary ex-
penses of government. beginning
1921, then the amount of revenue
originally estimated from automobile
taxation has been increased out of
All proportion to actual needs,
claims !. Borton Weeks, chairman of
the legislative board of the y. NJ. A.,
which prepared the brief.
Want Ultimate Repeal.
Speaking for more that 100000
members. and on behalf Of the mo-
toring public, Mr.. Weeks declares
that the basis for figuring d reduc
ton OF the war tax as now applied
to motor vehicles and automobile ac-
reSSories should be the difference in
The amount now being raised from
federal automobile taxation and the
amount originally contemplated as
necessary by enactment of sub1lvi-
sions !, and of section 900 of the
revenue act of 1921.
Therefore. in all fairness to the
motoring public that has assisted the
government in stimulating transpor-
tation, the y. NJ. A. recommends that.
commencing with the calendar year
the revenue act of 1921 relating to
motor vehicles and accessories be
amended to provide for reduction
IN the tax rate amounting to 40 per
cent, and that in the fiscal year be-
ginning July l, 1925, there shall be
further reduction of 80 per cent Of
the then existing rate, and that on
July I, 1926. said subdivisions be re-
pealed
This graduated scale for reduction
in automobile federal taxation is
generally regarded in the National
Capital as the most reasonable plan
thus far advocated, owing to the fact
that it takes into considera ton the
UNLESS a reduction in the tax rate
is made Mr.. Weeks points out
then the revenue to be derived from
automotive sources will have in
creased over 40 per cent since the
time of enactment of section 900.
Out Of Luxury Class.
We do not believe that such a
radical increase in taxation from this
source was contemplated when the
law was passed in 1921.
The automobile is definitely Out
of the luxury class, and on this basis
the y. NJ. A. justifies its stand fol
this reduction Of excess taxation ere.
ated out of the popularity of the
motor vehicle. The average valua-
ton of all cars operating Throughout,
the country today is less than 5000
while over so per cent of the traffic
mileage created by all motor vehicles
is unitarian or for a definite pur-
pose other than recreation or pleas
ure.
class with yachts. motor boats. candy
cosmetics, theatrical enterprises and
the like 1t best appreciated by spec
ulating as to what the country would
be confronted with were the nation
to be suddenly deprived of all high
way and street motor transporta-
tion."
The ". NJ A. brief includes a rec.
onnmendation for the immediate re-
peal of the present tax on repair
parts, which it regards as both d
nuisance tax and a tax on misfor-
tune, since it impedes the efficiency
OF those motor TRANSPORTATION facil.
tiles that have SO rapidly developed
the United States in the past few
years.