Evening star., 1933-02-12
kAA. FIGHTS RISE
IN D. c. GAS LEVY
hoIds Revenue 10 Times That
of virginia-Merchants
Join Opposition.

The 2-cent gasoline tax in Washing
ton provides four times as much per
mile Of roads a. the Maryland tax
and 10 times a. much per mile as
the Virginia levy, the District Divi-
sion Of the American Automobile
Association contended last night, re-
plying to the argument that the ad-
joining States have higher rates, put
forward in connection with the bill
pending in the Senate to make the rate
here cents.
At the same time the Executive
Committee Of the Merchants & Manu-
facturers' Association added its voice
to other organizations opposing the
bill to raise the tax here. The bill was
prevented from passing the Senate
Friday when Senator Oddie, Republi-
can, Of Nevada, objected to its consid-
Grafton, but it Is stiIl pending on the
Senate's calendar.
Holds Argument 'Fallacious"
The local branch Of the A. A. A.
described as 'fallacious" the argument
that the District tax should be raised
because the rates are higher in Mary
land and Virginia. A statement issued
by the local automobile association read
IN part:
$2,700 per mile for all streets and roads,
while the Virginia S cent tax provides
$219 per mile for all highways and the
Maryland cent levy $640 per mile.
Obviously, the road-building obligations
Of the respective areas should be con-
sidered."
Pointing out that five special motor
levies are now paid by District Of Co
hmbia motoristS-six including the
Federal gasoline tax-the A. A. A. divi-
sion said that the proposed increase
in the gasoline tax rate comes at a
time when the movement to reduce
taxes Is gaining headway throughout
the country.
"When the fee for a drivers license
was increased from 81 for permanent
permit to SO for q three-year period"
that the revenue would be used for
the expenses of the Department of
Vehicles and Trafic. Now 1t is pro-
posed to care for these expenses with
boost in the gasoline tax"
Taking cognizance Of the argument
advanced to the effect that the gasoline
tax Is higher IN other States than the
District Of Columbia, the A. A. A. state
ment continued:
1uc DlSbTICb Oh AOluIuUld p6COIlGS q
recognized State only when it is neces-
sary to show that taxes are lower. It
does not receive one cent Of Federal
highway aid as IN the case Of other
States. Instead, gigantic Federal pros
poets make 1t necessary for broader
thoroughfares at a. higher cost to mo-
torists And Government vehicles have
the free use of these thoroughfares
without the payment OF any of the mo-
tor vehicle taxes levied on private car
owners" s
"Tax More Than Adequate"
James E. Collihower, president Of the
Merchants and Manufacturers Associa-
ton, at a meeting of the Executive Com
nittee, pointed out that the present
2-cent gas tax was more than sufficient
to cover the expense of maintaining
roads tn the District Of Columbia and
that the association was unalterably op-
posed to diverting taxes on gasoline to
other purposes than street and highway
Improvement and maintenance. He
stated that automobile operators were
now paying more than $4,000, 900 per
year In taxes through the present 2-cent
per gallon gasoline tax levy, personal
property tax, registration fee and oper-
the Budget Bureaus estimate but S2,-
ators' permits. and that according to
321, $50 is needed for street construction
and repair which leaves an estimated
surplus of three-uuarters of q million
dollars. =
The association Endorsed the recon-
rnendation of the !Joint Committee ON
workmen's compensation rates and op-
posed the proposed increase of 26.9 per
cent in compensation rates for the
District.
The association also voted to petition
Congress to reduce water rates 20 per
cent in the District as originally recon-
mended by the subcommittee of the
House Appropriation Committee for the
District, but which was later changed to
10 per cent In the District supply bill.