Evening star., 1937-04-28
FOES Of INCREASE
IN GAS AND AUTO
TAXES TO TESTIFY
House Hearing Program To-
morrow Gives D. c. Heads
More Time.
COMMISSIONERS ASK
CENT MORE ON GAS
Measure Similar in Principle to
That Of Collins, Which Pro.
poses 2.Cent Raise.
BY JAMES E. CHINN.


Opponents OF various plans to force
automobile owners to aid in making
up the prospective 100000 shortage
IN District revenues in the coming
fiscal year will be given an opportunity
to express their views when the special
Taxation Subcommittee of the House
District Committee resumes hearings
tomorrow at 1890 am.
In the absence of Chairman Ken
nedy, Representative McGehee. Dem
ocrat, of Mississippi, vice chairman OF
the subcommittee, rearranged the
previously scheduled program Of
procedure and allocated the time
at tomorrow's hearing to organizations
opposed to proposals for increasing
the gasoline tax and adoption OF a
weight tax on motor vehicles.
The change was made because the
possible for them to complete their
own program Of taxation until next
week.
Proposals now before the subcom-
mittee affecting automobile owners
include the weight tax and gasoline
tax increase bills sponsored by Chair
man Collins Of the House Subcommit-
tee on District appropriations. and
similar measures recommended by the
Commissioners. The proposals of the
Commissioners. however, would not
place as heavy burden on the motor
vehicle owner as the Collins bills.
Bills Alike in Principle.
The Collins gas tax bill provides
a 2-cent advance in the local levy
The Commissioners recommended a
l-cent increase. The weight tax plans
Of Collins and the Commissioners,
however, are the same in principle,
though the features are radically
different
The Collins bill, for instance, pro-
vides a 35-cent-per- pounds tax
on private motor vehicles and
higher and graduated scale for COM
mercial cars. 1t would, however,
remove the present personal property
tax on motor vehicles. The Commits
sioners. on the other hand. recon-
mended a graduated scale for both
classes Of vehicles grouped according
to weight range, but continuing the
personal property levy. The tax on
private and public vehicles for hire
would start at IS and 60 as high as
SIP. For commercial vehicles, the
scale ranges from SIS to S75.
The Commissioners estimated the
l-cent increase in the gas tax and
the weight tax they proposed would
yield total of $2,6O0,O0O q year in
additional revenue.
Capt. H. c. Whitehurst, director OF
highways. has given the subcommittee
data showing the 1-cent gas tax
increase would be sufficient to support
the activities Of his department. And
Representative Nichols, Democrat of
Oklahoma, an active member of the
subcommittee, has indicated he would
not approve higher increase, believ-
ing the gasoline tax already is bearing
It's fair share Of the tax load.
Collins Bill Indorsed.
The Commissioners also have in
dorsed the Collins bill to increase the
tax on insurance companies from is
to per cent on policy and member
ship fees and net premium receipts.
j. Balch Moor, superintendent of
insurance, predicted this rise would
yield slightly more than 100000 in
revenue from the insurance companies
Moor testified his estimate was based
on = prospective $500 900 reduction in
fire insurance rates in the coming
year. Several months ago, he re-
ported to the House Subcommittee on
District Appropriations that fire insur-
ance policy holders in the District
had been overcharged about 10000
900 in the last IL years.
Altogether, the preliminary tax
program of the Commissioners is
calculated to produce $2,8OO,0O0 in
additional revenue, leaving about
$3,200000 to be raised from other
sources. A sales tax on tobacco is
one Of the proposals now under con-
sideration by the Commissioners and
Nichols has promised to support that
because he holds q sales tax Is the
most painless" form of taxation.