Evening star., 1941-07-01
S Auto Sticker Tax
Among New Levies
Considered in House
All Pleasure Cars
Would Be Affected
By Proposed ImPost
Rx the Associated rress.

By the Associated Fress.
If the House Ways and Means
Committee has its way every pri-
vately owned automobile in the
United States will be wearing $5
Federal tax sticker to help raise the
desired S3500,000,000 of new rev.
enue to finance the defense pro-
gram
The committee recommended the
levy late Yesterday along with a
lot of other excise taxes designed
to produce about S733 100000 of the
additional revenue and Chairman
Doughton suggested that "StiCker"
receipts for the auto tax might be
sold through post offices.
Another committee recommended
ton likely to affect a broad section
of the population was that a 5
per cent tax be imposed on all pas
senger transportation fares over 35
cents, whether by rail, water, air
or bus
S3,315,O00,OO0 Yield Expected.
The Weld from the new excise
levies, plus returns from increases
previously recommended in lndi-
vidual income, corporation, excess
profits. estate and gift taxes, would
account for approximately $685.
100000 of the revenue sought.
AS one means of raising the re-
naming money, the committee to-
day looked for a way to tax soft
drinks without increasing their re-
tail prices.
The Treasury proposed that such
beverages be taxed l cent bottle,
but some legislators said that in
States which already had tried SIM
liar levieS it was found that they
seriously impaired the sale of the
products.
What we are trying to do one
member said, is to tax soft drinks
as much as possible without forcing
the retailer to increase his price.
Whether we can do this by taxing
the sirups that 60 into the drinks
is what we've got to decide"
The Treasury estimated that the
1-Cent tax would yield about Sl32,-
100000 additional
Apart from the use tax on auto
mobiles, yachts and airplaneS. the
committee tentatively recommended
a per cent excise tax on the sale
price of new automobiles, which the
Treasury estimated would produce
about S79,900O00. 1t was contended
the tax also would help to reduce
competition for the decreased out
put of pleasure cars and thus help
offset inflationary effects of the de-
fense spending program.
The committee agreed also on in
creasing the tax on liquor from So
to 81 gallon and boosted the tax
on wines substantially. 1t refused,
however, to raise the taxes on beer,
tobacco or gasoline, although the
Treasury suggested that S496 100
900 could be obtained from those
sources. Mr.. Doughton said, how
ever, that any member of the COM
mittee could move for reconSidera-
ton of the action taken on any of
the proposals thus far.
Other Proposed Levies.
The long list of excise taxes given
tentative approval included a 5 per
cent levy on all telephone bills. 10
per cent on jewelry. watches and
clocks; sporting goods, trunks and
other luggage; monographs and
records, musical instruments and
Photographic equipment.
The tax on refrigerators and air.
cooling equipment and on radio
sets and parts would be boosted
from Sig per cent to 10 per cent.
Bowling alleys would be taxed SIS
annually for each alley, and a SIM
liar amount would be levied on
every pool and billiard table.
Action was deferred on proposals
to tax furs 10 per cent of their re-
tail price, and the committee like
wise set aside for future considera-
ton taxation of parimutuels, slot
machines, electric light bulbs and
the production of gas, except for in
dustrial use.
The committee refused, Mr..
Doughton said, to tax coffee, cocoa,
tea, sugar, insurance premiums, the
leasing of motion picture films and
fuel oil used for motor fuel.