Evening star., 1937-04-11
M0T0R|STSFEAR
DIVERSION Of TAX
A. A. A. Official Cites Chief
Reason for Opposing In
crease in LeVieS.
BY WASHINGTON 1. CLEVELAND,
Manager A. A A. District Of Columbia
Motor Club.


One of the greatest objections on the
part of Washington car owners to the
proposals to increase motor vehicle
and gasoline taxes, is the fact that
such increases will lead directly to
diversion of special motor tax revenue
to purposes other than street improve
ment and traffic administration.
Car owners always have been will
Ing to pay their own way and, more
over, have been willing to pay reason
able property taxes on the automobile
just as they would on piano or other
personal property.
However, they are not and never
will be satisfied with a system of taxa
ton that requires them to pay more
than their fair share of general gov
ernment costs. The practice Of
diverting motor vehicle revenue to
non-highWay purposes is universally
recognized as means of subjecting
motorists to double taxation, and even
Congress itself has unanimously
declared diversion to be unfair and
unjust"
Lack Ballot Here.
At the same time that voteless
Washingtonians are facing this diver
sion threat, organized motorists
throughout the country are using the
ballot to stop this evil practice once
and for all In at least 20 States,
results have already been seen in the
presentation of bills to Legislatures
calling for amendment of the State
constitution or other appropriate leg
islative action to conflne expenditures
of motor tax money to State and high
way purposes alone.
The most amazing aspect of the
situation is that Congress is proposing
to increase and divert motor vehicle
taxes in the District of Columbia,
while, at the same time, it has ordered
that every penalty be applied against
States which are guilty of diversion.
Under the Hayden-Cartwright Fed
eral-aid act, States which add new
diversions by legislative action are
subject to the withholding of one
third of their Federal-aid apportion-
ment.
Complete the Paradox.
To complete the paradox, Congress
Is now considering legislation which
would grant Federal aid to the Dis
trlct Of Columbia and, at the same
Tune, proposing tax system which,
under the law, would result in a
one-third reduction of that appor-
-,
needs call for more taxes, there should
be no particular objection. If the
tax rate is raised on general per-
sonal property, there is no reason
why the property tax on the auto
mobile should not be increased to a
like extent.
But to use the automobile as a.
means of gouging from Washington
motorists disapportioned share to
the general cost of Government is
thoroughly indefensible, unwarranted
and unjust
An increase in the gasoline tax as
now proposed is not necessary in order
to meet normal District street and
highway requirements. If the tax
should be doubled, it would encourage
extravaganza in street and highway
expenditures and also would more
than likely build up an excess reserve,
which could, and most likely would,
be dipped into for any and all rev.
enue purposes. Already there has
begun to be breakdown in the pro-
VISION OF the gasoline tax laws in
the District, which provide that gaso-
line tax revenue shall be spent only
Tor street and highway purposes.
Under the approprjatjon hill ooeo-