Evening star., 1934-02-08
GAS TAX INCREASE
PROPOSAL DRAWS
FIRE At HEARING
Measure to Raise Rate 2
Cents Denounced by Citi-
zens' Body Leader.
MOTOR CLUB OFFICIAL
ALSO OPPOSES BOOST
Sponsor of Bill in House Defends
1t on Ground 1t Will
Equalize Taxes.

Vigorous opposition to the bill
fathered by Representative Smith of
Virginia which proposes to increase
the gasoline tax in the District of
Columbia from cents to cents a
gallon to equal that charged in Viz
ginia was registered at a hearing
today before the Fiscal Affairs Sub
committee of the House District Com
mittee.
Chairman Clark of North Carolina.
and Representative Werner of South
Dakota both Democrats, were the
only members of the Subcommitte in
attendance.
Those opposing the bill were L. A.
CarrutherS, chairman of the Commit
tee on Fiscal Relations of the Fedora
ton of Citizens Associations, who is
also a member of the Joint Commit
tee on Fiscal Relations; Thomas j.
Keefe, general manager of the Ameri-
can Motorists Association; T. F..
Beihler. representing the American
Automobile Association. and Charles
Upham, engineer director OF the
American Road Builders Association.
Virginians Back Bill.
Only two witnesses appeared in
support of the bill, Representative
Smith himself and c. F. Joiner, jr.,
assistant motor vehicle commissioner
for Virginia
Speaking for the organized citizens
of the District, Carruthers emphasized
that "the levying of tax always
implies need of revenues and the
increase of any present form of tax
alton indicates the need of increased
revenues
The city of Washington" said Mr..
Carruthers, has less than 800 miles
of stretets. as compared with more
than $4,000 miles of roads in the
State of Virginia. Most of the streets
in Washington are paved and are in
a good state of repair and the rev.
enues derived from the present tax
of 2 cents per gallon are more than
enough TO take care of the roadway
program as outlined by the engineer
department of the city.
There is no need of additional
revenue for highway purposes and
certainly no attempt should be made
to increase taxes unless there is need
for additional revenue"
Would Equalize Taxes.
Representative Smith, when faced
with the question by Chairman Clark
regarding the large accumulated sur
plus in District revenues, explained
that for years he has advocated lower
real estate taxes and more equitable
division of taxes between real estate
and other sources of revenue. He
emphasized that he had co-operated
last year to obtain a reduction in
the tax rate. He said that last year,
while there was a recognized need for
street improvements. the Appropria-
tions Committee held the purse
strings, and he argued that if greater
authority was given the District Com
mittee and the Appropriations Com
mittee was deprived of its right to
impede improvements by not appro-
priating the funds, the surplus reve-
nues could be wiped out.
Smith also said that he is a strong
advocate for an increase in the Fed
eral Government lump-sum contribu-
tion toward support of the National
Capital. and said that the amount of
the Federal contribution was not COM
parable with the amount of taxable
property that the Federal Govern
ment has removed from the tax
books.