Evening star., 1933-12-24
MLEOD TO RENEW
SALES TAX FIGHT
Michigan Representative to
Urge Levy on Wholesale
Price of Goods.

Renewing the fight for a sales tax.
Representative Clarence ]. Mcleod. Re
publican, of Michigan, announced last
night that he will urge the next session
of Congress to enact such levy to re-
place certain existing revenues.
Mr.. Mcleod declared he will aim his
proposed measure at present discrim-
inatory excise taxes levied on a few
industries" and will ask for a 2l2 per
cent levy on the wholesale prices OF
manufactured goods.
Necessities of life are excepted un-
der my BILL" Mr.. Mcleod explained, |,
so that no burden may be placed on
the average citizen"
Mr.. Mcleod introduced a similar bill
during the last session of Congress.
That bill is now pending before the
Ways and Means Committee and Is the
only general sales tax measure which
has been introduced during the present
Congress.
Unfair Excise Taxes"
THE abolishment of the existing un-
fair and discriminatory excise taxes
levied on a small section Of industry
and their replacement by a general
manufacturers sale tax equally spread
over all industry is the only logical ana
ultimate solution to the vexatlous tax
problem confronting the Nation today,
Representative Mcleod said
because necessities of life would De
exempted, no additional burden would
be placed on the citizen with small IN
come. BY spreading the tax equally
over all industry and repeating the
present excise levies, the present gross
Determinations which are seriously
tending to stifie recovery in the indus
tries which have been singled out Ior
this unfair burden will be completely
"The automobile industry is the chief
sufferer under the present special excise
taxes. Detroit and Michigan, as the
center of the automotive industry are
naturally feeling the burden OF this
injurious tax policy to greater degree
than other sections of the country.
However, the retarding and retrogressive
influence of the existing excise taxes
over national recovery may be easily
understood when we take into consld-
Grafton the fact that raw material for
automobile construction is shipped from
every part of the country, and that
throughout the United States during the
year 1882 a total of nearly four million
workers depended upon the automotive
and associated industries for their
means of livelihood.
Burden Increases.
"The enormous tax burden borne by
the struggling automobile rnanufac-
turers has increased by leaps and
Federal and State automobile taxes
have Increased approXimately 300 per
cent, and constitute fully one-tenth of
the revenue derived by Federal, State
and municipal governments from all
sources. Under present tax rates, a
motor car will actually, during its nor
NAL period of use and operation. pay
more than its original cost in taxes.
"This excessive taxation is naturally
tending to reduce ownership Ut motor
vehicles. A comparison of statistics
compiled recently shows that decrease
in ownership has been far greater In
States where the gasoline tax was
higher than the average The Local
source of revenue to States in past
years, and since the enactment Of the
Federal gasoline tax, 13 States, in order
to maintain the revenue yield from this
source have found themselves forced to
make drastic SlaShes in registration fees
in an attempt to keep motor vehicles IN
use.
"The welfare of the Nation demands
immediate action to abolish these tax
determinations ana evils and It Is my
intention to exert every effort when
Congress convenes next month to have
my bill enacted into law. Its manifest
advantages make it certain that such
a tax will eventually be adopted by the
Government as the most easily collect
ed, the most prolific and the fairest
possible means of raising the necessary
revenue, and its adoption at this time
would be most progressive and for
ward step toward the goal Of recovery
for which we are so earnestly striving -