Evening star., 1932-01-24
INDUSTRIES FIGHT %
| PROPOSED TAXL|FT
Automotive, Radio and Real
Estate Men Protest Treas
ury Program.

The most vigorous protest that has
yet been presented against the Treas
ury Departments proposed tax increase
program was made yesterday before the
House Ways and Means Committee by
representatives of the autofnotive and
radio industries and the National AZ
sociation of Real Estate Boards.
Spokesman for the automobile and
radio industries opposed the proposed
scent manufacturers sales tax on the
products of those industries, while the
Real Estate Association argued agair5t
the recommendation for Federal levy
on real estate transfers.
"These taxes will defer, and possibly
defeat, the vitality important program
of getting the people back to work"
said George H. Graham, vice president
of Rockne Motors and spokesman for
the National Automobile Chamber OF
Commerce, referring to the automobile
excise tax. They are direct as
sessment on the depleted incomes Of
the American home
Consumer Would Pay.
Frank D. Scott of Washington, gen
eral counsel for the Radio Manufac-
turers Association, picturing serious
conditions in the industry, said the
radio sales tax las a depression tonic
would fave the effect of carbolic acid,
He said employment in the industry al
ready had dwindled from 100000 in
1928 to not more than 10000 this year.
The spokesmen for both the auton1o~
bile and radio industries told the COM
mittee frankly the proposed tax, IL
levied by Congress, would be passed on
to the consumer through increased
prices. They declare with equal en-
phasis this would mean a shrinkage in
sales and thus lead to further unenn-
ployment and retrenchment in both
industries.
Nathan w. MacChesney of Chicago.
counsel for the National Association of
Real Estate Boards, termed the pro-
posed restoration of the real estate con-
veyar1ce stamp tax "a nuisance tax"
He said 1t never produced more than
SO, 900 900 before and would yield less
than $4,000 900 now Real estate, ne
declared, represents is per cent OF the
wealth Of the country and already bears
IS per cent of Its taxation.
Already Ovsrtaxed.
Thomas p. Henry Of Detroit, presi-
dent of the American Automobile AS
Sociation, appeared in behalf of the
owners of automobiles" He said the
auto tax should not be approved Be
cause it was Federal invasion OF a field
that already was overtaxed by state,
county and municipal governments.
High gasoline taxes, he asserted, had
led to rscketeering and evasion on
high scale.
1--WE concede," said Mr.. Graham.
n,fe m taxpS and
that most people will regard the ideal
tax as one imposed on some one else.
we are sure the members of this COM
mittee and of the House generally are
against this tax. Nobody wants 1t but
the Treasury Department. Only two
excuses are made In favor of it-that
YOU need money and It Is easy to col
lect.
"You would not levy capital tax.
confscate a dead mans entire estate,
| tax railroad passenger fares, make the
| farmers pay the Government for NOV
| ing their wheat or increase corporation
income taxes to point where 1t would
destroy business incentive. Neither
should wrong be done to ourselves and
our customers and reviving business
! be- strangled.
"Ten per cent of the gainfully en-
| ployed people of the country take their
| livelihood directly or indirectly from
| the automobile business. 1t seems TO
us a calamity that just when we are
gathering momentum we are threat
ened with tax that will take from
motorists a greater sum than the total
earnings of all the automobile manu-
facturers in the calendar year 1881.
Paid 10 Per Cent Of Total.
hTrnsre are 2s sODO. 900 owners of
motor vehicles in the United State5.
more than the number of telephone
subscribers. In 1881 they paid 81 ,022,.. !.
100000 in taxes, 10 per cent OF all
taxes collected by all Government dlvi-
sions. The Treasury says this adned
tax would bring in s121 100000 we
figure 1t would yield not more than
| SIS, 900.
Loose thinkers still believe that q
tax on automobiles is paid by manu-
facturers or wealthy buyers. The sale
OF automobiles costing above $4,000 Is
| less than / per cent of the total.
Eighty-five per cent of all automobiles
sold are priced at less than $3.50. Two
| thirds of all motor car buyers have In
comes of $4,000 or less
B. j. Grigsby, Chicago n1anufac-
turer OF radio receiving sets, cited the
experience of his company as an ex-
ample of the condition of the whole
radio industry He said his company
employed $4,000 persons in 1929, 1000
in 1880 and about $500 now. Business
has slumped from $60,000,0o0 a year
to $4,000, 900 last year.
! Representatives Of both the auto
mobile and radio Industries said high
tariff barriers had seriously affected
their export trade. Mr.. Graham
pointed out that automobile manufac-
| turers had established factories in Can
ada to put out export cars because the
Dominion had tariff rates which had
not encouraged prohibitive foreign
rates in retaliation.