Evening star., 1932-02-07
A. NJ. A. PROTESTS
PROPOSED LEVY
Warning Against Federal Gas
Tax Is Voiced by
Club.

Opposi, on TO the proposed levy by
the Federal Government of a l-cent
gasoline tax was voiced this week bv
the Legislative Committee Of the Amer
lean Motorists Association in a warn
ing broadcast to its affiliated clubs.
Present indications are that Con-
greSs, under the guise of necessity of
increasing the Federal Governments
revenue, will impose a 1-cent gasoline
tax the associations warning declares.
rs Per Cent Increase.
"a 1-cent Federal gasoline tax means
an increase Of 25 per cent in the mo-
tortsts' gasoline taxes, the average gaso-
line tax at present imposed by the
States. being 4 cents per gallon, " Thor-
as j. Keefe, general manager Of the A.
M A. points out.
Motorists would have no assurance
that the Federal Government would
step with 1-cent tax. Once the Fed
eral gasoline tax is imposed it would be
as difficult TO remove it as it would be
10 have the present Accent average
gasoline tax reduced. 1t is a safe pre-
dtction that the next move would be 10
increase the Federal tax to or 8
cents
Motorists during 1881 paid total
Of approximately S525 900 900 in gaso-
line taxes Imposition of a 1-cent Fed
eral tax would mean an added annual
tax burden of Sl5O00O. 900. according
to figures submitted to Congress by the
United States Treasury Department.
Out of Proportion.
THE ratio of gasoline taxes, as com
pared TO retail prices. has already grown
out OF all fair proportion. Using the
1881 figures, the average assessment of
nearly one-third of the retail price
Imposition OF a 1-cent Federal tax will
mean an average tax of cents per
gallon. The average retail price of
gasoline in so representative cities on
January l, 1882, was 13 cents per gal
lon. This would mean a ratio OF 81
per cent tax compared with cost.
Should there be the same ratio of
taxation applied to railroad bonds. cor
porationS, real estate or any other
media, there would be a unanimity of
protest that would instantly reach Con-
gresS. Notwithstanding the fact the
proposal for l-cent Federal gasoline
tax has already been recommended and
is almost certain Of passage, the motor
lists of the country have taken only
slight interest in making their protest
known to their Federal Representatives.
Both State and Federal Govern
ments have long since lost sight of the
fact the gasoline tax was levied to
finance good roads. Motorists, in the
main. have never protested fair tax
when the revenue derived was used on
the roads. Today gasoline tax revenue
is being diverted to schools, text books,
charities, pensions. unemployment re-
lief. oyster farms, fish hatcheries, State
buildings and projects, retirement Of
railroad bonds and other governmental
expenses.
Use of Proceeds.
Proceeds from a Federal gasoline tax
will go into the general funds of the
United States Treasury, being used for
general administrative purposes The
one argument that can be advanced for
it's imposition is that the Federal Gov
ernment annually is appropriattng
SIPS. 900, 900 for Federal highway aid,
which represents only small contribu
ton on the part of the Federal Gov
ernment considered in the light of the
fact that the Federal-aid system serves
as the backbone of the military defense
highway system and is used by the
Federal Government daily in transmits
sion of the United States mails and for
other Federal purposes.
imposition of the 1-Cent Federal
gasoline tax is but an entering wedge
and unless motorists desire to have
their gasoline tax burden substantially
increased they should at once voice
their opposition to Congress-