Evening star., 1954-01-10
The Travellers Notebook
Showdown Due on Repeal
OF IS Pct. TroveI Tax
Railroads Cite Loss Of Patronage Under Levy;
Retaliation by Mexico May Spur Action
By Jacques FutrelIe, Jr.
The Stor's Tguvel Editor

rovsl Editor
railroad publications recently
carrying an article which said,
in part:
"By diverting business from
for-hire carriers to private trans
portation, these excise taxes
weaken the system of transport
tation upon which the general
public must rely and which is
essential to the economy and
the defense of the Nation"
Showdown Action Neor
Practically all the organiza-
tions concerned with vacation
travel have joined in an active
fight for repeal, which appears
to be headed for a showdown
decision in the present session
of Congress. These organizations
include even the American Au-
tomobile Association, whose in.
terest lies primarily in the well
fare of the private-car owner.
Among other organizations in
the forefront of the fight for
outright repeal-and hoping for
at least a reduction-are the
National Association of Travel
Organizations. the American So
ciety of Travel Agents, Associa-
ton of American Railroads, Fed
Grafton of Railway Progress, Ma
tional Federation of American
Shipping, Hotel Greeters OF
America, and the National Asso-
citation of Motor Bus Operators.
Perhaps even you. the indi-
vidual traveller, have Joined ac-
lively in the move to repeal the
travel tax. Pressure of the voters
on Congress is a part OF the
strategy promoted by some or
ganizations to bring about repeal.
Encouraged to Protest
The public has been encour-
aged to protest the tax in writing
to their Representatives and
Senators.
In a movement that may
spread, some transportation VIC
Tins of the tax again are publi-
cizing, by stickers attached to
tickets and by other means, the
inequity of the tax and the fact
that it adds Is per cent to the
cost of transportation. The hint
is to complain.
If the pressure e-promotion CAM
palgn has not reached the pro-
portions hoped for by its spon-
sors, perhaps it is because the
voters are wary about jockeying
Congress into enacting taxes that
are more obnoxious to them. For.
against the Stiffness of keeping
them of the trains" in peace
time is the Governments logic
that the tax is red-hot revenue
producer, and its loss must be
made up somehow, at least to
some extent.
S2,206, 600, 900 Revenue
One witness at the August
hearings of the House Ways and
Means Committee mentioned
that the tax had produced ST.
206, ,000,0 in Government reve-
nue. since it was imposed. The
committee has the figures from
official sources, of course, but the
witness was laying the ground
work to make the point that
more than IS per cent of that
total was collected since termina-
tion of the war.
Witnesses also pointed out
that Congress repealed the World
War I tax on transportation in
1921. and that Canada repealed
a similar levy of World War II
early in 1949.
Others Seek Relief
What Congress will do about
repeal is in the lap of the gods.
whatever any administration or
congressional spokesmen may
say today. Advocates of repeal
have some formidable compete
tors in other industries bur-
dened by so-called luxury taxes.
The liquor industry has pre-
sented all the logic it could mus
ter for a reduction of taxes on
its products. jewelry and cos
metic interests have pleaded
their case, automobile manufac-
turers and dealers and moving
picture people have presented at
least part of what is in their