Evening star., 1933-06-04

Congress is putting too much depend
ence upon a shrinking source OF reve-
nue. in attempting to increase the Fed
eraI gasoline tax to ~ cents gallon,
in the opinion of Thomas j. Keefe, sec
retary of the American Motorists Asso-
citation. He explained that the States
in 1882 levied gasoline taxes at the
highest rates since the levy first was
imposed by Oregon to finance highways
in 1919, yet collected $23,350,219 less
than in 1881. when tax rates were lower.
aside from the unfairness Of asking
motorists to pay $92000,000 annually
for Is years, or 81 $3.50 100000 in all,
when they will receive direct benefits
roads out of the $4,000, 100000 public
works program, there is the matter Of
tax economics" said Mr.. Keefe.
Congress boards a sinking ship
when it embarks on higher gasoline
taxes. The law of diminishing returns
has begun to affect this levy. as State
gasoline tax collections of only S513,-
O47,239 net in 1882 against $536, ,397,-
458 in 1881 definitely prove.
Gasoline consumption in 1882 de-
clined, on the average, more than 2 per
cent. Motor vehicle registration fell of
more than 6 per cent. New car sales
slumped more than 40 per cent. II
every l cent increase in the gasoline tax
means a 5 per cent decrease in gasoline
consumption, then Congress is reaching
into the wrong pocket for revenue.
THE Senate Finance Committee
early last month recommended that
from 1884 on, the taxation of gasoline
be exclusively the function of the States.
Imposition of the higher rate under
conditions now proposed would perpetu
ate the Federal levy for Is years. And
members of Congress have told me that
if this increase becomes effective, many
of them never will live to see the day
when this new levy is eliminated"
Fayors Sales Tax Instead.
Appearing recently before the Ways
and Means Committee in connec-
ton with revenue suggestions to finance
the public works program, Thomas T.
Henry, president of the American Au-
tomobile Association, vigorously objected
to any plan that would include another
raid on gasoline.
The A. A. A. president heartily ap-
proved the principle that the Govern
ment should provide revenue to finance
the public works bill, but asserted that
special motor levies would amount to
sheer discrimination" against the users
of highway transport.
Mr. Henry dealt in particular with
two of the suggestions made to the COM
mittee by the Treasury Department,
namely, the general sales tax and an
increase in the Federal gasoline tax.
He declared in favor of general
sales tax, but argued that if such plan
is adopted, adjustments should be made
as regards the commodities and prod
ucts now bearing special excise taxes,
particularly automotive products. He
took sharp issue with Director OF the
Budget Douglas, who recommended that
if sales tax is imposed, that be done
without exemptions.
However" Mr.. Henry said, "f you
adopt sales tax, want it understood
that we should much prefer tax, ex-
emptionS or no exemptions, to another
raid on the gasoline tax" He continued:
THE extent to which this particular
source Of revenue has been exploited by
the Federal Government, by the States
and the municipalities, and the evils
that have accrued from this uncon-
scionable exploitation are so well known
to you and have been so often placed
in the records of this committee that
it is hardly necessary for me to go into
the situation in detail"
Local "Rackets."
From the above opposition 1t would
appear that all motoring agencies are
thoroughly convinced that further taxes
on the motoring public would be moth
ing short of a racket"
There are local rackets, however,
against the motoring public that are as
equally bad. 1t is understood that
traps" have been set out at Mount
Rainier, Md, where Tor any reason or
no reason at all, motorists are hailed
in kangaroo courts" for fines. This
practice should be at once broken up,
for according to reports motorists are
not given fair hearing.
Washington policemen are at present
"bawling out" motorists for not
stopping at stop signs, even after they
have stopped. A policeman may not
see the motorist stop, but he Should
not get ofhcious unless he Is sure that
a stop was not made. Several instances
have been known of a motorist being
arrested for a violation he did not COM
nit. The courts should carefully watch
such cases.