Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-07-31
Gas Tax Rise
For Road Plan
Still IsA|ive
Survey Indicates
Floor Fights on
Committee Stand
BY ALFRED ALIBRANDO
Star STAFF Writer

There is still a strong posi-
bility that Congress will vote
an increase in Federal motor
fuel taxes to keep the interstate
highway program on schedule.
A survey of congressional
leaders indicated that the rec
concentration of the House
Ways and Means Committee
which voted against any tax
increaSe-would be contested in
both the House and Senate.
The committee proposed a
81 billion shoft-term bond is
sue to meet expected deficits
in the highway trust fund. The
bond issue would provide $500
million for the current fiscal
year and permit the States to
go ahead with construction of
$2.5 billion in interstate high
ways already authorized.
However, the House Ways
and Means Committee recon-
mendation scaled down 1861 al
: locations, starting next July,
from SIS billion to $500 mil
lion. 1t would reduce 1862 and
1868 ALLEGATIONS from a total
of $4.4 billion to $1.9 billion.
Official Protest
Washington area and ma
tional highway officials have
protested that this cutback
would wreck interstate free
way and eXpreSSway programs
toward which the Government
contributes 80 per cent of the
cost.
Senate Majority Leader John
son yesterday listed a reason
able and satisfactory road bill"I
as one of the Senate'S top
priorities before adjournment.
Senator Byrd. Democrat of
Virginia, indicated he was
opposed the House Ways and
Means Committees recommen-
dation because it involved def
icit financing. Mr.. Byrd, chair
man of the Senate Finance
Committee, was the author Of
the pay-aS-you-go amendment
in the 1856 act authorizing
construction of the 40,000-mile
interstate system. =
This amendment, which lin
tied ALLEGATIONS of money to the
States to expected gasoline,
truck, tire and bus taxes COL
lectionS, was suspended for the
1859 and 1860 fiscal years as an
anti-receSsion measure. AS a
result. the program was Speeded
up.
Create Emergencies
This acceleration resulted in
the immediate financial emer-
gency-the expected $500 NIL
lion deficit in fiscal 1860. In ad-
dition. the Bureau of Public
Roads in 1858 announced that
the original cost estimated for
the interstate system were far
too low. The administration
this year proposed a accent
increase in gasoline and diesel
fuel taxes-from 3 to Az cents
per gallon-to meet the 1860
deficit and the increased costs.
Some congressional leaders
feel the bond issue proposal
should be knocked out all to-
gether and that the 1860 deficit
be made up by borrowing from
the Treasury. This faction pro-
poses as a companion recon-
mendation an increase in motor
fuel taxes of between a half
cent and a full cent.
The House Ways and Means
Committee is a powerful hurdle
for the advocates of a. tax in
crease. Since only the House
originates tax measures, the
bill recommended by the COM
mittee must be amended on
the House floor. The Senate
can increase the amount of the
tax rise but not originate it.
In view of President Eisen-
hoWer's strong statements on
behalf of the tax increase and
against deficit financing for
highways, Republican members
are expected to sponsor tax
Increase amendments. Fear of
a veto of the bond financing
measure may induce enough
Democrats to go along with a
compromise that would keep
the highway program going an
other year.