Evening star., 1933-06-15
j. S. GAS TAX HELD
BLOW TO STATES
Interstate Commission Cites
Encroachment in Protest
Addressed to President.
Dispatch to The Star,

Special Dispatch to The Star.
CHICAGO, June l5.-The subject OF
Federal taxation of gasoline sales is
proving a sore one for the Interstate
Commission on Conflicting Taxation.
This commission is seeking to bring
some degree of order out of the present
national tax chaos.
Just when it was hopeful that the
Federal Government might return to
the States the sole right to tax motor
fuel, Congress has instead added one
half cent gallon to the one cent Fed
eral tax previously levied, entrenching
the National Government in this new
field of taxation.
In protesting against this encroach-
ment the commission emphasizes the
loss to the States and the communities
which are depending more and more on
gasoline sale taxes to meet the heavy
burden of highway and city street ex-
pense. This organization thinks that
instead of the Federal Government
crowding into the field, gas tax funds
more largely should be utilized to help
out cities and other local units OF
government.
Protests to Roosevelt.
"a fair and practical method of OBJ
tanning a measure of property tax re-
lief for farmers and urban home owners
is to allow local governments to share
more largely in the proceeds OF State
gasoline taxes" asserts Henry w. Toll,
chairman of the Commission on Con-
flicting Taxation, in a protest addressed
to President Roosevelt
During recent years some progress
has been made in this direction. Thus,
about Is per cent of the total gasoline
tax collections of the country was spent
on local roads and city streets in 1882.
Cities and rural local governments, how
ever, are still far from receiving as
large a proportion of the gasoline tax
as is justified by their expenditures on
public streets and roads.
Further property tax relief through
more liberal local participation in the
proceeds of the gasoline tax is at pres
ent blocked by two major obstacles. In
the first place the yields Of State gaso-
line taxes are declining. In the second
place, the imposition in 1882 of Fed
eral gasoline tax of cent a gallon,
now to be increased to u cents makes
it impractical for the States to attempt
to increase the yields of their own gaSo-
line taxes at this time.
Threat to State Finances.
'Whatever the effect on motor fuel
consumption of the Federal gasoline
tax, the existence of this tax constitutes
threat to the financial INTEGRITY OF
the States and hampers the efforts in
the direction of property tax relief"
With its program upset on this
score, the commission finds that it has
Jared rather unsatisfactory in other
fields, too as result of legislation this
year. 1t has recommended that the
Federal Government leave to the
States the taxation of electrical energy,
but this tax was continued by Congress.
It recommended also that States leave
to the Federal Government the taxation
of tobacco, but number of legislators
this year voted State taxes. Sales taxes
were regarded as a natural field for
Federal legislation, but in practice they
have come to be State affairs.
BY constant agitation and study the
Commission on Conflicting Taxation
representing most of the States of the
Union, hopes to effect gradual progress
toward an ordered tax system In the
Nation or replace the present over
tapping and unscientiflc systems now
applied.
(Copyrigl1t, 1880