Evening star., 1932-03-06
FEDERAL GAS TAX
SCORED BY HENRY
Evils Without Parallel Have
Crept Into System, A. A. A.
Head Says.

The threat Of SO per cent boost
in the Nations $500, 100000 a year gas
oline tax bill, in the form of Federal
levy Of l cent per gallon. looms as q
birthday gift to motorists on the thir-
teenth anniversary of this form Of tax
alton.
This statement was made today by
the American Automobile Association,
which pointed out that the gasoline
tax, first levied at the rate of cent
per gallon in Oregon on February IS,
1919, has spread TO every State, with
the average rate nearly { cents per
gallon.
Pointing out that motorists have paid
approximately $2,500.000,000 in gasoline
taxes since 1t was first levied, Thomas
P. Henry Of Detroit, Mich. president
Of the national motoring body, declared
that the evils that have crept into this
taxing system are without parallel IN
the whole history Of taxation.
THE tax was conceived as one Of the
most equitable forms In existence" said
Mr. Henry, "in that the users Of the
highway were to pay Tor the building
of roads in proportion to their use OF
the roads. But what do We find on the
thirteenth anniversary OF the tax?
I'VE find the tax in erect in the 48
States and the District Of Columbia and
in hundreds Of counties and munich
palitieS that have superimposed local
taxes on the top-heavy State levy.
I'VE find rates ranging from cents
per gallon in some States to cents
In Tennessee and Florida, with a J.
cent levy at Pensacola m the latter
State making the rate cents per
gallon.
I'VE find the bootlegger and the
racketeer waxing rich at the expense
Of motorists and profiting to the extent
of approximately 60,0o0,000 a year
through wholesale evasions Of the tax.
I'VE find the States diverting around
s20, ,000, 900 a year from the tax receipts
to schools, port development, charitable
and penal Institutions, for the develop
ment Of water supplies and for unem-
ployment relief.
And at the moment we find the Fed
eral Government threatening to enter a
field that Is already overexploited by the
State, the county and the city, through
the levy of Federal tax Of l cent per
gallon, which it is estimated would cost
motorists $165,000,000 a year. This
for example, to cents per gallon, or
equivalent to a rs per cent sales tax on
a commodity selling for II cents per
gallon without the tax. Surely it can
be said that the gasoline tax Is no
longer equitable" Mr.. Henry's state
ment continues:
IF a Federal gasoline levy comes as
an equitable part of a general tax on
manufactures, the motorists would not
quarrel, highly burdened though they
are. To impose a special sales tax on
gasoline, however, would be highly In
equitable and bark back to the dis
elimination that the Ways and Means
Committee has made q praiseworthy
effort to avoid.
Such a policy would hasten the
breakdown Of the gas-tax structure A
special Government impost for general
purposes would 60 far to establish 'di-
version as principle and divorce this
tax from road use, its original JUSTIN
cation.
1T would jeopardiSe hundreds Of mil
lions Of dollars in road bonds issued by
the States and which are contingent on
future gasoline tax collections by the
States.
1T would greatly accelerate the eva
sion evil, which is already depriving
the States Of much revenue and adding
greatly to the cost Of administration.
1T would tnaugurate a serious battle
between the States and the Federal
Government In their respective spheres
of taxation and inevitably lead to re-
taliation IN other tax fields"