Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-01-25
AUTO STIGMA TAX
REMOVAL SOUGHT
Time Long Past When Car
Is Luxury, Motor Company
Official Says.

Abolition of the so-called stigma
tax on automobiles is urged in a
statement issued by H. II. Rice, presi-
dent and general manager of the
Cadillac Motor Car Go. Although
some relief in that direction was ac-
Complished by the revenue act of
1924, he points out that this was far
from adequate and that the retention
OF Federal taxes on passenger cars is
pointless and undesirable.
In 1923 the industry paid n total
Of more than $751; 900, 900 in Federal
taxes, in addition to some 1913, 00O, 600
in State and municipal taxes" states
Mr.. Rice. 1T was felt that in view of
the removal of taxes on many articles
distinctly and wholly in the luxury
class. continuance OF the motor-car
tax was unjustifiable.
That the industry was reasonably
prosperous and that automobile taxes
were large and easily and inexpen-
stVely collectible were the most rea-
sonable excuses for their continu-
ance. Reductions which became law
during 1924 decreased the taxes upon
tire, tubes, parts and accessories from
90 TO 212 e. Truck and motor wagon
chassis selling for 81 900 or less and
truck bodies selling for $500 or less were
also relieved of the $50 tax
Hits New Parts Tax.
These reductions, though small,
were essential and well directed. The
parts tax had been essentially a null
sance tax as it was a tax upon mis-
fortune. The original vehicle had
been taxed and there was this addi-
tionaI tax upon parts to replace those
worn out in service or destroyed by
breakage.
Upon trucks, which are solely and
distinctly units of distributive equip
ment, the tax had been equally OBJ
noXious. Yet the mere statement is
sufficient to prove that the motor
truck chassis costing more than $1,000
is no more of luxury than the one
costing less. The relief granted was
in the right direction, but far from
adequate.
arguments for the retention of
Federal taxes upon passenger cars
are equally pointless. The time has
long passed when any one with the
slightest knowledge of how cars are
actually used has presumed to claim
that their use was other than 90 per
cent utility and 10 per cent pleasure.
The automobile tax reduction accom-
plished by Federal legislation is esti-
mated at 20 to - million dollars, and
this out of total of more than $751;
100000
In the automotive industry. as in
practically every line of business,
leaders have the greatest respect for
the businesslike accomplishments Of
the present administration. AS an in
dustry II desires. as do individual mo-
tor car owners and loyal citizens
everywhere, to carry its share of the
Governments financial burden. 1t does
distinctly feel. however, that the con-
tinuance of the present stigma tax is
as ridiculous as 1t would be to single
out for special Federal taxation
lathes, engines, threshing machines
or any other kind of machinery which
is distinctly time and labor saving
"Citizens in every walk of life are
directly affected by Federal motor car
taxation and It is 10 be hoped that
steps will be taken in the next ses-
sion of Congress for the abolition of
this tax, which, imposed as an emer-
Eency measure for war purposes, is
now continued long after the emer-
gency is passed and the cycle OF re-
adjustment well under way"