Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-15

hearings on feVenue-ralSlng pro-
share of a 15-year road building
program. He described the bill
of Representative Boggs. Demo-
crat of Louisiana, as being much
better than the Eisenhower ad-
ministration's Inflated plan of
last year. He also disputed
claims of Secretary of the Treas
ury Humphrey before the COM
mittee yesterday that the Boggs
bill was not a real pay-as-you-
build plan and could cause huge
annual budget deficits.
AS the sponsor of a separate
bill which the House Public
Works Committee expects to re-
port out within two weeks on
construction features of the
highway program, Mr.. Fallon
said he nevertheless believes the
Boggs bill could be improved.
Il don't think you have enough
emphasis on the people who
would make the most profits out
Of the highway" he told Mr..
Boggs. a committee member
They should pay more of the
Cos. IL financing it out of higher
taxes. -,
Bill Had Sliding Scale
Mr.. Fallon did not specify the
tax differentials he favors be-
tween proposed rates on tires
used by large trucks, small
trucks and passenger cars. He
recalled, however, that a bill he
sponsored last year providing a
sliding scale of increased taxes
on tires and tubes. That bill, as
well as an administration meas
ure with a bond issue financing
provision, was defeated by the
House.
The Fallon bill of 1855 would
have obtained an estimated S12.4
billion in Is years. The Boggs
bill would bring in an estimated
$12.2 billion during Is years from
increased taxes including an
across-the-b board boost of three
cents a pound on tires of all
kinds.
Spokesman for the American
Trucking Associations, Inc, tes-
tifying later today, defended the
Boggs bill andthe across-the-
board provision.
John V. Lawrence, managing
director. and William A. Bersna-
ham, assistant general manager,
declared the measure already
provides a 4-to-1 tax differential
per mile against large trucks as
compared to passenger cars.
They said they supported the
Boggs bill and this overall diff
ferential as fair and equitable"
and in line with the ratio pre-
vailing in the financing of state
and toll roads.
The trucking industry officials
contended that the tax increases
proposed in the Boggs bill.
coupled with existing gasoline
and rubber taxes. would result
in larger vehicles making much
greater tax payments than pas
senger cars.
Estimate of Taxes
Basic data contained in Btu
reau of Public Roads study in
dictate that light passenger cars
would pay annual taxes Of
Sl945." Mr.. Bresnaham said,
whereas truck combinations.
depending on size and number
Of axles. would pay annual taxes
ranging from $3.50 so to S834.50."
The stand taken by the truck
ing industry spokesman was in
line with numerous recent public
statements Their contention,
however. is disputed by various
other groups. particularly the
American Automobile Associa-
ton. which declares that the
Boggs bill would discriminate
against passenger cars in some
Of the proposed tax increases to
finance the highway program.
AAA officials are scheduled to
testify before the committee next
Tuesday.
Mr.. Humphrey proposed that
a 12-year program be finan-
ced out of new taxes and
that only the revenue from
gasoline and diesel fuel at
present tax rates be "dedi-
Gated" to highway construction
purposes. That revenue already
is so used. He objected to
"depleting" Treasury general
funds by using tire tax and