Evening star., 1934-11-11

rich. Inasmuch as there is a car Of
some sort for every six people in the
land, and inaSmuch as millions of
working people use their cars to reach
their jobs or in discharge of their
duties, the idea that to tax the motor
car is to tax the rich man has lost all
the weight it ever had.
That idea did have considerable
weight in past years when only rich
men could afford automobiles, but
then all taxes were low. Today the
tax on the poorest car owner is greater
than it was 20 years ago on the multi
millionaire. There are many ways of
figuring, but method widely accepted
shows that the average tax on the car
owner amounts to about 43 per cent.
There was not tax in the land 20
years ago as high as that.
The lasc figures compiled by the
American Automobile Association show
there are 23,827, ,290 cars of all types,
including trucks, in the United States.
They are valued at s4,023, ,476,189. But
in addition to the primary taxes paid
on purchase and the personal property
taxes, there are the license and permit
fees and, above all, the gasoline tax
which must be regarded as a part
indeed the most important part-of
the whole levy on motorists. State
gasoline taxes alone amount to s5lS,-
100000, while the various imposts Of
local jurisdictions such as counties
and cities run the tax bill UP to
about s87l, 100000.
Result of Excessive Taxation.
There are 48 States in the Union,
but the people of only seven States
own more than half the cars. They
do not pay quite half of the tax be-
cause, while the Federal taxes are
uniform, there is the widest difference
in the taxes imposed by States.
When gasoline taxes first were i'm
posed, the theory was that the money
would be used to help in improving
public highways. The next step was
that gasoline taxes should bear the
entire burden not only Of building but
of maintaining highways. Then the
policing cost was added. Finally not
few jurisdictions piled on still more
taxes and in many parts Of the coun-
try the taxes on the motorist not
only wholly support the highways and
build new ones, but come near paying
all other governmental expenses be-
sides.
The motor car industry employs
about one-tenth Of all workers-some
4,5oo,000 out Of 100000 gainfully
! employed. Last year S233 ,000, 900 was
paid out in wages by the industry.
Motorists last year spent S2,600,00o,-
I,nf-
money widely. They pay $500, 1000 900
year in insurance. The American
motorist is goose which lays fabu-
lous number of golden eggs daily.
But to revert to the effect Of taxes
on human activity. Not many years
ago every town in the country was
crowded with automobiles on court
day. Deep in the country the honk
Of the horn was familiar sound. It
is in the South where the local taxes
on the motorist have mounted most
rapidly. There is one Jurisdiction
where, in addition to the Federal tax
on gasoline, the motorist must pay
State tax, then a county tax and,
finally, municipal tax. The result
Is that it costs % cents a gallon
in taxes before one begins to pay any
thing on the price of the fuel Re-
suit, once again the public square on
court day is filled with horses and
mules Garages and filling stations
have closed. Statesmen who did well
selling cars and tires are in other
jobs or unemployed. Outlying real
estate has lost its value because no
longer easily accessible. Just the re-
verse Of what happened when the
wheel and window taxes were repealed
has happened in those places. The
goose that laid the golden eggs has
been killed there.