Evening star., 1931-12-20
IKE it or not, 1t appears
that a new Federal tax on

r IKE it or not, 1t appears /
that a new Federal tax on
the purchase of new auto
- mobiles will be placed on |
the statute books in very short |
time. This new legislation will |
probably mean that the present |
cost of motor cars will be in
creased from $50 to $3.50 and, per-
haps, more.
An Incentive Produced.
This pending action by Con-
greSS should prove very great |
incentive to buy now, or soon, at
least, and thus escape this levy.
1t should prove a great selling
argument for the dealers. Many
a prospective customer, when ap-
preached, will say that he or she
will consider the proposed pur-
chase of new automobile later.
It is now up to the salesman to
show the potential buyer that
procrastination will be the thief
OF money as we'll as time.
1t does seem a bad time to in
crease taxes on the automobile
when the industry is trying so
hard to get out of it's slump. The
automobile of today does not be-
long in the luxury class except in
a few instances where each mem
Der of the family thinks he or
she ought to have one. How
ever, one who must have a car
and thinks it can be afforded,
may be able to stretch the fam
lily budget little further and OBJ
tain one despite the increase that
is very visible on the horizon. One
thing that must be considered is
that the present machine is
listed very cheap for the value
contained. What the tax may do
will be to make some people buy
IN a different price field than
they anticipated. However, this
may be, If it is at all, the result
In only a comparatively few cases.
On the subject of increased
taxes the National Automobile
Chamber Of Commerce has some
very pertinent things to say. Ac-
cording to their directors taxa
tion has a far-reaching influence
upon production and consump-
ton, and excessively or unwisely
applied can work great damage
to the forces which are now en-
gagged In attempting to balance
supply and demand.
N. A. c. C. Tax Policy.
Continuing it's declaration of
taxation policies, the directors
state:
I'VE must at all times be pre-
pared to meet our public obliga-
tions. In doing so great care must
be taken not to curtail the con-
suming power lest unemploy-
ment be Increased and the task
of raising public funds be rem
dered more difficult.
consequently, we hold that
before any increases in taxation
are considered, the Congress
should first eliminate every ex-
penditure which is not essential
to the public interest.
"All industries have been forced
to reduce their expenses in keep
ing with the times.
Government itself cannot es-
cape the operations Of the eco
nomic laws.
"a careful analysis should be
made of all expenditures and
wherever they are found non
productive in character, the out
lay should be stopped.
1--WE commend the universal
movement for a reduction in
world ornaments as a sound step |
in this direction.
This done, if further taxes are
then found necessary, they should
be distributed as fairly as pos
sible over all income-individual,
industrial and otherwise.
Every one benefits from Gov
ernment and all income should
share it's costs.
Industries Essential.
"In times of peace and never
more so than at present, all in
dustries are essential not alone to |
those employed in them, but to
the general welfare.
Discriminatory taxation which |
singles out any one industry for |
more than it's share can only re-
suit in unbalanced consumption
and consequently in uemploy-
ct and business stagnation.
Should Congress find further
taxation is necessary, we urge
that serious thought be given to
the effects of new taxes upon the
consuming power OF the masses
in any action which may be un-
dertaken.
'The members of the National
Automobile Chamber of Com
merce will support any proposal
for new taxes, if they are found
necessary, which is founded on
Justice and equity
Equally they will join with the
users of 26,O00,0OO motor vehicles
in resisting as far as thev legit-
any imposts which single out
their product for discriminatory
1evies.
ALREADY the motor vehicle
owners of the United States are
paying almost ,000,000,000 an
nually in special motor vehicle
taxes.
Legitimate Uses.
1--WE have concurred with the
users of these vehicles in approx
ing these taxes so long as they
have been used for road pur-
poses alone and so long as they
have not been unduly burden
some.
1--WE have done this in the face
of the fact that motor vehicles
are only an element in trans