Evening star., 1932-10-30
|GAS TAX STRUCTURE.
HELD ENDANGERED.
Conservation Boards Indict-
ment Should Be Warning,
Says A. A. A.

Current revelations by the Federal
Oil Conservation Board as regards the
seriousness of abuses in the gasoline tax
field challenges immediate action by the
States If the gas tax structure is to be
saved, according to statement by the
American Automobile Association today.
The A. A. A. statement was issued by
Sidney D. Walden of Detroit, Mich,
chairman Of the Taxation Committee Of
the national motTing body.
This warning" said Mr. Waldon, 'as
to the rocks and shoals on which the
gasoline tax threatens to founder comes
not from the highway users who pay the
tax. 1t comes from an impartial agency
Of the Federal Government and deserves
the attention of the country and par
ticularly of our lawmakers on the eve
of the meeting Of 43 State Legisla-
lures"
Mai Recommendations,
Referring to some Of the major rec
concentrations made by the Federal Oil
Conservation Board, namely, the advis-
ability of scaling down the tax, the en-
actment of measures to eliminate boot
Logging, the strengthening of laws gov
erning exemptions, and the unWisdom
of using gasoline revenues for other
than road purposes, Mr.. Walden said:
THE board recognizes the evils that
have resulted from the pyramiding of
the gasoline tax from year to year and
wisely urges that the rate of the tax
which Is now as high as cents a gal
lon In one State, be scaled down. 1t Is
generally recognized that uniform
rate for the tax throughout the entire
country is not feasible because OF d1f-
ferent conditions existing as to highway
OBLIGATIONS, On the other hand, 1t has
become patent that the eXorbitant rates
enacted in some States are proving un-
economical from the standpoint of rev.
enue and at the same time are inviting
lawlessness because of the premium that
the high rates put on evasion.
Apart from the effect of the high
rate in discOuraging car operation, par
ticularly during the past ID months,
there can be no doubt that the wide dif-
ference in tax rates now prevailing IS
responsible for the speedy evolution OF
gasoline bootlegging into racket Of
tremendous proportions.
Urges Stronger Laws.
The strengthening OF the laws In
order that the States may exercise ade-
ouate supervision of distributors. deal
ers and retailers. better check OF ship
mentS and more prompt collections, will
accomplish something. But a reduc-
ton of the rate will accomplish more.
Unless the States act, and act quickly
the Federal Government, as the board
hints, may have to undertake collec-
ton of the tax in order to salvage the
revenue for the States.
There is little doubt that the exemp-
tions from the gasoline tax provided in
many States for gasoline intended for
farm and some other purposes have led
to abuses. Steps to equalize eXemp-
tions, if continued. and to exercise
stricter control, are necessary. Whether
the continuation of exemption Justlfles
the administrative trouble and expense
involved is, however, fitting matter
for further inquiry.
Particular Interest.
Particular interest attaches to the
boards conclusion that gasoline taxes
should be reserved entirely for road pur-
poses and should not be diverted to any
other governmental activities, however
praiseWorthy or urgent these activities
are. The principle that the revenues
from the gasoline tax should be applied
entirely to road use is the only justifi-
cation for the tax. 1t was on this un-
derstanding and this understanding
alone that the users of the highway ac-
cepted it.
The sustaining of this principle by
the Federal Oil Conservation Board
within a few months after the Federal
Government itself had entered the field
with a gasoline tax Of l cent for gen.
rl,C1n
sale inroadS on gas tax revenues are
contemplated in many States for such
purposes as unemployment relief, relief
from land taxes and whatnot. Is not
only timely, but is highly gratifying to
those who are interested in saving the
gas tax structure of the country from
distintegration."