Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-14


He warned the House Ways
only way to avoid throwing the
would be to raise other revenue
to replace Treasury funds which
the present bill would earmark
for roadbuilding.
Advocating a l2-year "pay-as-
Iyou-build" program, Mr.. Hum
Iphrey estimated that the bill
introduced by Representative
Boggs, Democrat of Louisiana.
would fall short Of revenue needs
by $11.9 billion in a 12-year
period. The Boggs bill proposes
a I5-year financing plan.
Gas Levies Earmarked
The only tax revenue ear
marking Mr.. Humphrey said he
would sanction for the 1852 bill
lion Federal share of the high
way building program would be
from levies on gasoline and die
sci oil. That already is being
done. he explained.
The Treasury Secretary con-
tended. however, that the BoggS
bill for obtaining $12.2 billion
in additional revenue by raising
taxes would obtain less than half
the amount of the new revenue
necessary for a 12-year program.
Mr.. Humphrey objected par
ticularly to another provision in
the bill. This would use for
highway construction purposes
during the next Is years the 500
billion in revenue expected dur
that time from existing rates
on tires and several other items.
This money now goes into the
general fund of the Treasury and
is currently being spent for other
purposes.
mot Pay-as-YOu-GO"
1.-THE point I want to make, /"
Mr.. Humphrey told the commit
tee. is that this is not a pay
aS-you-go bill. 1t would have to
be increased by So billion over Is
years of $11.9 billion over IL
years to make it a pay-as-you-
go plan.
I'VE cannot at the present time
deplete our general revenues and
use them for roads. We are OPP
Grating on a very narrow budget
balance. If you want to unbal-
ance the budget, that is your
privilege. But any dollars you
take out of the general revenues
you will have to put back to bal
ance the budget. You can take
all the money out you want. but
you've got to raise a correspond
ing new revenue somewhere else
and put it back"
While Mr.. Humphrey seemed
guarded in his criticism of the
Boggs bill. he nevertheless clearly
indicated opposition to any pro-
posal that would earmark for
highway building purposes the
revenue which would otherwise
go into the general receipts of
the Treasury.
Dissatisfaction Reported
There had been advance I'M
official reports that Mr.. Hum
Iphrey and other administration
officials are dissatisfied with a
IBoggs bill provision for an
aeross-tl1e-b board increase of 3
cents a pound on all tires wheth-
er used for passenger cars or
trucks.
In his opening statement to-
day. the Secretary did not COM
ment on that matter. But he
urged the committee to work out
IA tax plan that will most fairly
raise the necessary totals re-
Iquired."
He told the committee that the
Treasury Department will be
glad to continue to work with
you and your stats in prepar-
ing the estimates of receipts
from various alternatives and
combinations of taxes"
The Treasury estimates pre-
sented by Mr.. Humphrey on
what he called "pay-as-you-
build" basis for a 12-year period
indicated that existing gasoline
and diesel fuel taxes at the q
cent a gallon rate would bring
lin SAP billion. This would
leave about $21 billion to be pro-
Ivided in new taxes. he said. He
estimated that an additional l.
cent levy on gasoline would yield
s6.6 billion. The Boggs bill esti-
mates $86 billion over is years.
Sees 50 Billion in BOggs Bill
The new taxes proposed in
the Boggs bill. in a l2-year pc
Iriod. would bring in SOL billion. -
Mr.. Humphrey said. This is
less than half the total required
over the l2-year period and in
dicates the need for an additional
SLID billion to finance the pro-
gram on a pay-as-you-build
basis"
! The proposed across the board
boost in the Boggs plan has
aroused bitter dispute in other