The Bismarck tribune., 1925-11-11
EXCISE TAX
BURDENS0ME
TAX LEVY
Claim That Federal Aid Justi-
fieS Auto Tax BE Declared
Null and Void

Wash inCton, u. C.. Nov. l1.--CoN-
tinuati0n of the federal aid policy OF
the government on the same scale a
heretofore and repeal Of the entire
excise tax structure on mC.Or vchl-
cles weer the outstanding feature
of vigorous plea presented to the
house ways and means committee by
the American Automobile Association
in connection with the recent hear
inrs on the new revenue bill
The automobile ownenS' plea for
relief from the federal excise tax
burden, amounting at present to more
than l3U,OO0,0 900 a year and to $SGl,-
600 900 since l9l7-.was made to the
ways and means committee by Oscar
}. Brown Of Syracuse, New York,
chairman Of, the Legislative board OF
the A. A. A.
Secretary Of :he Treasury Mellon 5
contention that federal aid to road
justifics continuation Of the excise
tax on passenger cars was declared
| wholly untenaDle by the a. A. A.
spokesman who aiduccI legal and
constitutional reasons why congr2s $
cannot impose 4 special class levy 20
| be expended for the general good Of
/ the country.
Unfair to Motorists
"The sccr,tary's Y.and,' he said, "is
weak and clearly unfair to the motor
lists. HIS theory that it is a federal
function to levy direct taxes for sp2-
cial bene fits is illegal as we'll as i'm
! practical.' He continued:
"The federal aid act was passed by
congress in 1916 as measure for the
general good of the n;Stion whereas
| the excise tax WIS passed in 1917 i, Il
| specific measure to meet specific war
needs and it was never the intent ot
congress that confusion should ar.at
between the federal aid prlncYple. I.
which the government has committed
itself, and this tax.
| "Ihe excise tax or any other TED
eral tax levied against Il class is jus
titled only to the extent that the l4V-
enueS are to be expended for the gen
eral public welfare. Congress itsclt
has refused to recognize any Other
theory. If it had, then we might
properly ask why opriatiOns fol
federal aid up to June 30, 1925. were
only S493,OO0,O00 and excise take
collected were $SG4, ,OCO, 900, or nearly
double. We might further ask WIZ
it is that congress does not make =
special levy on ships for the huge
sums it spends annually in rive" and
harbor Improvement.
Not Consistent
"Congress might just IS well chalg"
4 special fee or tax for admission t"
our puhlir h"i Iiinps or for the use Of
our public libraries. TO be consist
ent it should also tax the railroads
heavily for the huge profits they
have received from the origin,
grants Of 15S,000,0O0 acres of land. Ii
| should also TAX as Il class the ra l.
roads for having established for then
an inter state commerce commi sSion
the manufacturer and the distribute,
for the special support of the depart
ment of commerce; the farmer fol
having a department of agriculture
and the oil operator and miner 20.
'the department of interior. Eaci
fulfills a federal function, but bene
fits directly only cerSain classes.
'iou should also consider the fac
that it will not take more than five
years at the present rate Of construc
ton, according to estimates OF the
Bureau of Public Roads, to complete
the national system. There is thel
an unappropriated balance to the ere
dit Of American motorists for fedora
highway construction of nearly $500,
ooo,c"V. NoHSleSS Is therefore totDiI
obligated to do away with The tn,
immediately"
n The A. A. A. spokesman warnet
against the tendency to make Fedora
Aid sectional issue.
Federal Aid for roads," he said
'is not a sectional matter. The roat
problems of the West do not diffe1
in principle one iOta from the roa,
proylems of the East. The issue i:
truly national as it affects transpOr
tation, business progress ana defense
in the wider aspect