Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-25
Limiting Use
OF Gas Tax 10
Roads Proposed
6. O. P. Acts to Bur
Further Cuts in
Excise Levies
By J. A. O'Leory

A move to earmark the 81 bill
lion collected annually as Fed
eral gasoline tax for use only on
highways was launched in the
Senate today, as Republican lead
ers fought to prevent any further
cuts in excise taxes.
The unexpected cut in the 10
per cent tax on household appli-
ances to S per cent last night
would cost the Treasury 500
million.
The move stiffened opposition
of Republican floor managers to
further reductions awaiting &C
ton today on automobiles, tele-
vision and radio sets.
Mcclellan Starts Drive.
The earmarking of gasoline
taxes for highways was proposed
by Senator Mcclellan. Democrat,
of Arkansas. At present the
Federal Government is spending
only $500 million a year on high
ways.
Republican leaders are spon-
soring a new highway program
which would increase the Fed
eral aid to 81 billion annually in
fiscal years 1856 and 1857. But,
if the Mcclellan tax amendment
passes, Congress could devote 81
billion to highways in 1855.
Senator Douglas, Democrat. of
Illinois set out yesterday to re-
peal entirely the 10 per cent
tax on household appliances,
which would have meant a saw
ing of $25 on the purchase of a
moderate-cost refrigerator, range
or clothes dryer.
Millikin Support Indicated.
Senator Millikin of Colorado,
Finance Committee chairman,
had argued all day against this
and other pending cuts on the
ground that they would throw
the budget further out of bal
ance. and there were reliable
indications he had enough sup
port on both sides of the aisle
to beat Senator Douglas.
AS the Senate was about to
vote. however. Senator Capehart.
Republican, Of Indiana offered q
compromise. to wipe out only
half OF the 10 per cent home
appliance tax. and it carried two
to one. Joining in support of
the compromise were 81 Repub-
licans. SO Democrats and the
one independent, Senator Morse
Of Oregon Only Is Republicans
and seven Democrats voted
against.
Republicans Switch.
Senator Millikin voted for the
S per cent cut on the roll call,
and before the results were tabu-
lated several Republicans who
had voted mo" swung over to
the amendment.
Before Offering his compro-
mise. Senator Capehart had
asked party leaders to postpone
the vote until today. He said
If forced to vote last night he
would support a reduction. but
would like more time to study
the problem. When he moved a
recess. however. both sides joined
in voting him down.
When the pending bill was
introduced. the White House
wanted it to provide only for a
one-year extension of existing
rates on liquors, tobacco, auto
mobiles and gasoline, which are
due to go down automatically
on April /.
The House granted these ex-
tensions, estimated to raise
$1,070,000.000. but it also cut
other excise rates on jewelry,
fur coats, luggage, light bulbs,
Photographic equipment, ad-
missions, transportation, and
telephone bills to 10 per cent.
These cuts wiped out 1912 mil
lion of the revenue from extern
sions.
The Senate Finance Commit
tee then whitfield away further
by cancelling the admissions tax
on theaters charging so cents or
less. This brought the revenue
loss to 1858 million.