The Waterbury Democrat., 1942-06-17
Rationing To Affect
 Many State Budgets
Reduction in Sales of Gasoline Presents Financial Problem to Government Officials States Heimann

Nationwide gasoline rationing will bring Iean days for state tax budg- cts, Henry H. Heimann, executive manager Uf the National Associa- ton Of Credit Men, warns in the mssociaticn,s mid-monthly review o9 business released yesterday. MT. Heimann spoke in Waterbury last week as guest of the Co1nectt- cut Credit Mems association.
 @It appears obvious that the states must set up their future hudgets on the basis of lower rev. enlies," he declares.
 ''Covernment revenue such as gasoline taxes and license fees re- sulting from the use of automobiles, have been an important part of all state budgets. Nearly one and one half billion dollars were collected in 10Ai by state treasuries from sources directly or indirectly allied to the use of motor cars. This ac- counts for approximately one dol- lar Of every three that our states, ag a whole, collect.
 Tn some states these revenues are only IS per cent of total col- lectioa1s, but in Q humber of states the percentage contributed by auto mobile users IS over 40 per cent. Should nationwide gasoline ration ing be imposed, each of our 48 states will be confronted with this revenue problem.
 New Sources
 deYk xz&nn va0A aVHa1aaV V1Nccth1n that new revenue sources can be found to replace all or most of this decline 4n state income. What is more, 1t is doubtful that the people would, or should, submit to added state taxation"
 Analyzing the dependence on the automobile of this nation on wheels" the credit executive points out that the automobile has been "a prime factor in social and busi- ness changes throughout our land. It dramatized the possibility and benefits of mass production, lower unit costs and higher wages.
 Tt likewise brought new jobs in many fields, changed business rela- tionships, revised our methods of distribution, stimulated population shift from cities to suburbs, devel- oped a magnificent network of pub- 1ic roads, provided new sources of tax revenues, and aided in the inter- How of ideas and people among all sections of the country.
 'sNow all this is threatened with change. Already nearly half of our people, who live in the gas-rationed states, have had their living habits affected. If nationwide ration!ng is next - and 1t Is at least a pos- Sibility after the first of July - the casts experience will be duplicat- cd in every part of the country"
 Discussing current tax trends, MT. Heirlan states that "the American people have a good understanding of the need for higher taxes and they will meet the increased levies. but they will likewise ask for the greatest possible equity in the spreading Of the burden.
 Lawer Incomes As Tax Source
 Tt is clear that to raise the vast sums required both to help finance the war effort and to curb imitation ary trends, we must tax lower in- come groups which previously have not contributed directly. The rap- idly.expanding national income Is concentrated to a large degree in the lower income classification, and it is there that the greatest infia- ticnaEy purchasing power is devel- Oped.
 "While the tax changes mention ed above would increase the num- Der Of taxpayers by some 50 per cent, 1t is estimated that the added