Evening star., 1941-07-29
Gas Tax
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tCOntlnueQ FROM fISl rage
irons of their business establish
mentS.'
Mr.. Cleveland pointed out the
automotive tax burden which has
been in the neighborhood of $780,
100000 a year would be nearly
$500 000,000 this fiscal year and very
close to a billion dollars by next
year if the new Federal tax pro-
gram is adopted
The prospective Federal automo-
tive taxes. together with the pro-
posed 2-cent tax increase in the
District" he declared. will cause
the yearly tax bill of the Washington
motorist to jump from about s45 to
close 10 500
Rise of Not Over l Cent.
Mr.. Cleveland summarized the
views of his organization with this
statement:
The A. A. A. points to the fact
that the need for a substantial por-
ton of the expanding program of
streets and highways in the District
of Columbia is occasioned by the
needs of the Federal Government
in serving its personnel in the Dis
trict of Columbia and accordingly
the A. A. A. recommends that the
tax rate on gasoline in the District
of Columbia for the purpose of car
rying out the WhitehurSt program
should not be increased more than
l cent per gallon and that the Fed
eral Government through special
appropriations in addition to the
lump-Sum Federal contribution
should assume a substantial portion
of the cost of financing this high
way program
Objections to the proposed 2-cent
gas tax increase also came from rep
reSentativeS of citizens associations
the District Federation of Women's
Clubs. the International Association
of Machinists. the Capital Transit
Co. and the keystone Automobile
Club.
The only outright Endorsement of
the 2-cent additional tax came from
w. F. Wilmoth, representing the
District chapter of the American
Road Builders Association, who
| said:
This association. after giving
+ careful study TO every available
means of financing this project
'the proposed highway improvement
] program, has concluded that the
/ only and effective means for doing
this is to increase the District gaso-
line tax from the present rate of
2 cents to cents a gallon"
A 2-cent raise in the gas tax
would cost the Capital Transit Co
at least an additional Sl20000 a year
j. E. Heberle. its vice president and
/ controller. said
In answer TO a question by Chair
man Hunter, however. Mr. Heberle
said the company did not contem-
plate any increase in Streetcar or
bus fares if the bill is enacted
An increase in the gasoline tax
will place a heavy burden on the
company declared Mr.. Heberle.
Earnings Called Inadequate.
He said the earnings of the COM
pany are now inadequate, but steps
had been taken to build them up
through improvement in equipment
and better transportation.
Would an increase in the gaso-
line tax lead to an increase In
streetcar and bus fares?" Chairman
| Hunter asked.
I'VE would not be inclined 20 ask
for any additional fare" he an
swered. There would have 70 be
other conditions. You cannot
tinker with fare structure on mass
! transportation without having q
decided effect on the passengers
We are trying to make the fare
structure popular and believe we
have done So
We feel" Mr. Heberle continued,
that an additional tax of $4,000 a
year would be very severe burden
on the c. T. c. and we suggest that
if additional funds are needed for
highway improvements that they be
considered as defense projects and
the cost more generally distributed
1T does not seem to me that the
residents of the District should bear
an additional local tax burden in the
face of the tremendous increase in
Federal taxes"
Keneipp Testifies.
George E. Keneipp. manager O
the Keystone Automobile Club. wa
one of the strongest opponents of tn
bill.
The K. A. c." he declared. "op
poses the proposed increase in tn
Districts gasoline tax. Our position
will be continued until we have
better understanding of the specifi
purposes for which the additiona
revenue would be used, and an op
s'ss.....sa