Evening star., 1924-01-20
TAX DROP.
APPROVED, Is VIEW
But Motor Company Manager
Insists Excise Tax on Autos
Should Cease.

In letter written some few weeks
ago by Secretary of the Treasury Mel
Ion to Representative w. C. Green,
acting chairman of the House ways
and means COMMITTEES. recommends
tions were made of tax reductions
amounting 10 more than 3oo,0o6.o0o.
says III. H. Rice. president and general
manager Cadillac Motor Car Com
pany.
( AS government receipts from taxes
are now several hundred millions in
excess Of fiscal needs the recon-
mendation has received general ap-
proval throughout the country. Presi-
dent Coolidge has also. committed
himself unquallfedIy in favor of the
Secretary's suggestions.
One Omission II Cited.
1t was a matter OF great surprise to
! motor car owners and manufacturers
that the recomme ndations did not in
clude the abolition of the present dis
criminatory excise taxes on auuono-
biles. and that these taxes were not
! mentioned In President Coolidges
message to Congress
was imposed In the first place
along with many others to meet q
national emergency. The country
! found itself face TO face with a great
war, and needing revenues from
! every possible source The question
OF justice or injustice was not con-
stdered. Congress saw fit to impose
and the classification of certain COM
modities and services as luxuries. and
| the taxation Of them as such, was a
! manifestation of that thought.
| Classed as Luxury.
Automobiles were placed In the
cat egury OF luxuries, but the manu-
| facturers' and users Of motor cars
| made no complaint. particularly in
view of the fact that railroad trans
portation, kilograms, telephone mes
! sages and the use of leased wires
were also taxed.
| Congress has already removed the
| taxes on railroad transportation. ten
mis- rackets, toilet soaps. sporting
goods. chewing gum, thermos bottles
retary Of the Treasury has particu
/ larly recommended decreases on sur.
taxes and income taxes and the abo-
! lition OF taxes on admissions, tele-
phones. kilograms, leased wires ane
/ jewelry OF general use, such aS table
. ware and watches and of q whole
group Of taxes bringing In only minor
! revenues.
Motor Tax Obnoxious.
| With the ending of the necessity
created by the war, ALI of these spe-
cial excise taxes became discrimtna-
! tory. and as such should now be en-
/ tirely removed. With many OF these
| taxes already removed. and with
many others recommended for re-
moval, the remaining tax on motor
F, cars, parts and accessories becomes
particularly obnoxious. 1t is con-
/ tinued for a purpose for which it was
| not originally imposed. and directly
penalties necessary and highly
lpractical form OF transportation
which is almost universally used.
/ The day has passed when II was
| necessary to demonstrate the true
F, service performed by the motor car
1t has become so essential a part OF
our highly organized American life
! that TO realize it's utility and neces-
! sity we have only to imagine what
| would happen II automotive trans
portation throughout the nation
should stop'for just one day.
A bill already has been introduced
| into the national House OF Represen-
tatives by Representative Clancy OF
Michigan calling for the repeal OF the
! tax on automobile trucks>and wagons.
other automobiles. parts and access
| sories, tires and inner tubes.
While mention OF motor cars, Ia
conspicuously absent from the Presi-