Evening star., 1942-06-06

It is, in brief, to impose a Federal
tax of about Is cents gallon on all
gasoline sold to motorists.
1T should greatly reduce the
amount of driving" he writes,
Thereby saving rubber and con-
serving existing cars much longer
for necessary transportation. 1t
would mean to a defense worker
who lived seven miles from his work
an additional daily transportation
cost of about Is cents, which is not
too serious. 1t would, however, have
a great psychological effect and
should result in less pleasure driv-
ing, more doubling up. and greater
usage of other means of transporta-
ton
"If such a tax would not suf-
ficiently reduce the amount of driv-
ing the tax could be increased to
20 or Is cents a gallon. The rate
need not necessarily be uniform for
the entire country. For example, If
it is impossible to get sufficient gas
for the Eastern seaboard, the tax
could be increased until the usage
balanced the supply.
Seen as Imitation Check.
In addition to the effect of such
an excise tax on the saving of rub
Der through reduced driving, it would
yield under present driving habits
an estimated S2,500,000,000 in tax
revenues and to this extent by drain
ing off excess purchasing power re-
duce the damage of imitation. Re-
duced Federal revenues below the
foregoing estimate due to restric-
ton in driving induced by the in
creased cost of gasoline to the con-
sumer would be Offset by savings in
rubber.
Methods now in use and pro-
posed. such as the issuance of A,
B and x cards, limiting cars to one
a family. communicating cars. etc,
are arbitrary, whereas stiff excise
tax on gasoline would impose on
each individual an urgent stimulant
to adjust his driving to his own
minimum personal requirements.
such a program for conserving
rubber and levying taxes has the
advantage of ease of collection,
whereas rationing schemes involve
the employment of small army to
Issue cards. do the police work,
keep records, arrest violators, etc.
1t does not involve discrimination
inherent in any rationing system
which throws people into definite
groups. Each person is free to ra-
tion himself AS he sees fit. The
huge number of persons required to
operate and police rationing sys-
tenn and the expense of their main
tenance would be saved and their
energies conserved for more direct
contributions to winning the war"
1t Is estimated by DR.. Charles
Dearing of the Brookings Institution
that using up rubber that should
be conserved is now forcing auto
mobiles off the road in huge guam
titles. Soon it may exceed 1000
600 cars per month and this means
that in June, 1943, there will be
only 100000 cars in operation
out Of 100000.
The serious implications of this
economic debacle ought to be fore
seen. Farmers who are getting high
prices for their products and in
duStrial workers who are getting
high wages are using most of the
rubber currently and they would
be automatically restrained by a
heavy gasoline tax.
Would Preserve Distribution.
But there are other reasons why
the tax would be helpful. Americas S
distribution system of filling sta
tions is unexcelled throughout the
world. While 1t is true that nor
maly there may be too many of
them, still it is also true that
national gasoline rationing system
will put too many of them out of
business. Under a system of high
excise taxes of perhaps IS cents a
gallon, the Federal Government
might arrange to let the stations
retain a few cents a gallon to COM
penSate them for the loss of VOL
ume which the Federal Government
is bound to impose as consequence
of any rationing scheme. If the
volume sold showed that a dealer
was reaching somewhere near his
prerationing volume, the rebate
from the tax receipts could be
graduated downward Thus the
smaller stations, which may be hit
the hardest by the tax or by ra-
tioning. could be helped as they
should be because it is through no
fault of theirs that sales of the
product from which they make a
living have been curtailed.
In Britain they impose very
high excise tax on gasoline and
apply rationing, too. America might
do we'll to consider a high gasoline
tax. 1t will be argued that the
well-to-do can pay it but the per-
sons of small means cannot. The
rich are less than 100000 persons.
Any one who owns an automobile
can pay few cents a week if he
must use his car and the result
would be to cut down tire use and
gasoline consumption without the
expense OF national rationing
scheme. The Government, more
over, would collect $4,000, ,ooo, 900 in
taxes, A
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