Evening star., 1933-06-16
Thomas P. Henry Charges
"Gross Discrimination" in
Federal Automotive Taxes.
31ST ANNUAL CONVENTION
OF ASSOCIATION OPENED
Delegates to Reafirm Support of
Manufacturer Sales Tax
at Session.
Thomas P. Henry Of Detroit to-
day was reelected president of the
American Automobile Association
for his eleventh consecutive term.

4O1 LILO ClCNC1lt4l SOAlCCSdoAFS Vel
Congress was charged with gross
discrimination" against highway trans
portation by continuing and extending
the Federal automotive taxes by Thom-
dent of the American Automobile Asso-
citation, in militant speech opening
the organizations thirty-first annual
convention at the Willard Hotel today.
Il cannot recall more fragrant in
stance Of class penalties or more
reprehenSive breach Of faith" Henry
said, than that perpetrated by Con-
gress in the case OF the Federal motor
tax. In addition to the unwarranted
burden on motor users, these taxes
are particularly onerous from the
standpoint Of the automotive industry,
which has shown more initiative than
any other industry in its efforts to re-
vive business in the United States"
History Of Taxes.
The history Of these taxes, including
the recent increase in Federal gaso-
line tax beyond the time limit set in
the 1882 revenue act, the extension in
life Of the excise taxes on passenger
cars, trucks and automobile acces-
sories, was reviewed by the association
president. He declared:
'The net result Of this gross discrim-
ination and inequitable treatment at the
hands Of Congress is that the motorists
Of the country now find themselves
saddled with Federal sales tax of ap-
Congress pursues the hypocritical course
of refusing to adopt general manu-
facturers' sales tax that would provide
all necessary revenue and be fair to all
concerned"
During the time devoted to introduc-
tons Of resolutioss Of policy this after
noon, the association delegates will re-
affirm their support Of the manufactur-
ers' sales tax. It was pointed out by
association officials that since Congress
has just added $62,000,000 a year in
gasoline taxes to the 100000, 900 in
Federal levies already paid by motor
lists, the convention Is certain to in
augurate a fight against further ex-
ploitation Of car owners.
Reports Of various officers Of the as
sociation and chairmen of committees
on taxation, safety and highways were
heard by the approximately $50 delega-
tions who represent all sections of the
country. Later this afternoon the an
nual election Of national officers will be
held. 1t is expected that Mr.. Henrys
name will be placed in nomination for
reelection as president.
Other important matters which will
occupy the attention of delegates will
be the elimination Of traffic hazards
and the improvement of arterial high
ways, and efforts to introduce legisla-
ton to control reckless drivers, who, it
is claimed, are now responsible for 80
per cent Of accidents.
Anent Highway Safety.
In regard to highway safety Mr..
Henry said in his address: Protection
of life and property on streets and
highways is another important problem
confronting motordom Under the
provisions for the expenditure of $400,-
100000 for highways and related prof.
ects carried in the industrial recovery
act, the funds may be used for safer
traffic facilities. Our State highway
departments can render no greater con-
tribution to the cause Of safety than to
use a liberal part OF their share Of
these funds to widen arterial highways
and to eliminate a large variety OF
traffic hazards"
In regard to automobile taxation, Mr..
Henry presented figures showing that
motor vehicle property in the country has
a valuation Of $4,500, ,000, 900, on which
an annual tax Of more than 81 ,000,-
100000, or 23.5 per cent. Is paid in
Federal, State and local taxes.