Evening star., 1933-08-13
TO FIGHT
EX0RB|TANT TAXES
Organized Moterdem Mar
shaIine Forces for Ma
tionaI Breadside.
Special Dispa tch to The Star.

Special Dispatch to The Star.
DETROIT, August 12-Organized
motord0m and interests affiliated with
it are marshaling forces for q national
broadside against exorbitant taxation.
The campaign Is renewal Of fight
waged unsQccessfully for more than q
dozen years.
With the country's business machin-
cry in process of complete realignment,
the American Automobile Association,
the National Automobile Chamber of
Commerce and numerous other organi-
zations are wheeling big guns into line
in an effort to rouse America against
long-continued exactions Of legislators.
Manufacturers Lending Aid.
Automobile manufacturers, conscious
Of the fact that the use Of cars has
been decreasing as the gasoline taxes
have increased, are lending their aid.
They are educating their owner Glen
tele on q situation that has become
acute in the present year.
In 1882 taxes paid by motor car own
ers in the United States reached the
staggering total of 81, ,076 ,022, 900. repre-
senting 900 per cent increase per
vehicle since 1919. 1t has been esti-
mated that motorists pay taxes Of vari-
GUS kinds at the rate of $2,947,as2 per
day, $l22,833 an hour and $2,04l Q
minute.
1t is shown that people who operate
motor vehicles OF all types now pay l0.7
per cent of all taxes from all sources.
The taxation SO imposed is ON motor
vehicle owners. Income and property
garages, dealers, service stations, truck
terminals, taxicab and bus operators
are not included.
As of January l. 1888. there were
24,136,879 motor vehicles registered in
America. The total marks a decline
through two successive years, from as
1872 ,8s4 in 1891 and from 26,545,281 in
1880. The decreases, respectively. are
2.5 per cent and 6.6 per cent.
A. A. A. Declares War.
Designating these levies as discrimi-
natory, exorbitant and class legislation,
the Automobile Club Of Michigsn, one
of the largest of the A. A. A. aff1liateS,
with $4,000 members and representa-
ton in "a cities, has issued declara-
ton of war.
Michigan, whose very existence de-
pends upon the automobile industry" it
is pointed out, lis endeaVoring to snuff
out the very life of its chief support.
Our State should lead the national pro-
cession for automobile tax reform.
Michigan motorists in 1891 paid
taxes equal to 40 per cent of the total
tax revenue for the State. Twenty
seven States had lower percentages and
Delaware, with motor car tax revenue
Of 14.2 per cent of its State income,
was the lowest for the Nation.
For 1882, the Michigan gasoline tax
totaled more than s20000,000 and the
license tax amounted to S19,8O0,0OO."
At present prices Of gasoline in
Michigan, motorists pay 48 cents tax
on every 10 gallons of fuel purchased.
If new car Is bought, the owner pays
ION car in the light weight class
levy of S4763. On the fuel he pays
State gas tax, Federal gas tax and
State sales tax. On the car he pays
Federal excise tax, State sales tax and
weight tax.
II the motorist drives his new light
car $4,000 miles year, he pays an ad-
ditional $35.6 in gasoline taxes, bring
ing his total taxes to S83.25.
"Flagrant injustices have been
heaped upon automobile owners by
constant increases" it is added. Com
pared with other taxable properties, no
single class or group or industry has
Ildu 10 pear up unQer SuCQ cEuSnlnE
load. This 'socking' OF automobile
owners has gone past the limit of en-
durance and beyond the ability to pay"
AS specific example, the Chrysler
Corporation, aside from sales promotion,
has issued circulars on this subject. It
is shown therein that at the time Of
purchase, Federal taxes applying to q
four-door. six-cylinder sedan and in
Guiding the car itself, five tires, tire
lock, tire cover, thermostat, bumpers
and any other accessories, approximate
$1461. On top of this, there Is the
State sales tax which is $16.25, Federal
and State gas and oil taxes Of 20 cents
which dealers have to pay. License
plate fee plus the oil and gas taxes the
owner pays for his first 10000 miles Of
driving total up to $3862.
Drain on Family Purse.
At this rate. one years taxes on a
new car total up to $6977 on an initial
investment Of less than 5000 and ex-
ceed II per cent.
As statistics for 1882 show that 81
per cent of all new cars are bought by
persons with yearly incomes OF less
than $4,000, 1t becomes apparent that
the tax abuse Is drain on the family
purse at time when it is thinner than
for many years.
(copyrisht: 1893. by the North American
Newspaper Alliance, Inc.)