Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-08-25
1cGas TaxRise
For YearK Killed
By Vote
Ways Committee
Rebuffs Royburn;
22-Month Bill OKd
BY ROBERT X. WALSH
Star Stah Writer

Star stan Writer
In a surprise move deplored
by Speaker Rayburn as more
trouble" the House Ways and
Means Committee today reject
ed, 1912. a compromise one
year, 1-cent increase in the
Federal gasoline tax. The pro-
posal had been approved yes
terday by the Public Works
Committee to meet the crisis
in the interstate highway pro-
gram.
The Ways and Means Com
mittee voted. 1919, to send the
House a separate bill that
would boost the tax l cent for
% months beginning September
i, and transfer excise tax
revenue to the Highway Trust
Fund, starting July /, 1861.
Mr.. Rayburn seemed taken
ahack when reporters told him
of the Ways and Means Com
mittee's action.
His efforts to have the House
act on an emergency highway
bill at once gained ground late
yesterday when he persuaded
Public Works Committee Dem
ocratS to accept the compro-
mise. 1t called for an immedi-
ate one-year increase of l cent
in the present Scent Federal
gasoline tax and would have
transferred to the Highway
Trust Fund, beginning July /,
1860. half of the present ex-
else tax on passenger automo-
biles and two-thirds of the ex-
else on parts and accessories.
Extra Money Essential
This was subject to approval
by the Ways and Means Com
mittee which has prime re-
sponsibility for finding add
tional revenue to prevent a
serious showdown in the Al 1000
mile interstate highway con-
struction program voted by
Congress in 1856.
The extra money also is es-
sential to avoid a huge deficit
in the Highway Trust Fund and
assure continuance of Federal
ALLEGATIONS to States.
The Ways and Means Com
mittee at a two-hour closed ses-
sion today first rejected the
compromise proposal by the
1912 vote that repeatedly
crossed party lines. 1t then
voted, 1879, to reaffirm its Au-
gust Is recommendation for a
22-month tax increase of l cent
and transfer of the excise tax
revenue beginning July /, 1861
instead on next July /.
The committee direct e d
Chairman Mills, Democrat OF
Arkansas, to introduce that
proposal as a separate bill in
the House.
Bill of Own Due
This left the Public Works
Committee only with the pros
pect of reporting out a bill of
its own amending procedurSl
and administration sections of
the 1856 Highway Act. Those
provisions include the method
of Federal ALLEGATIONS to States
The Federal Government pays
80 per cent of the cost of the
highway construction and the
States 10 per cent.
Mr.. Mills said he voted for
the compromise worked out
yesterday by Mr.. Rayburn and
the Public Works Committee
He refused to disclose how the
other IA Democrats and 10 Re-
publicanS on the Ways and
Means Committee voted.
He indicated, however, that
most Republican members and
some Democrats refused to sup
port the compromise proposal
because of its probable effect
on a balanced budget for the
fiscal year beginning next
July /.
1t was previously estimated
that the proposed transfer of
part of the excise tax revenue
to the Highway Trust Fund
would have caused a drain OF
almost $500 million on the
Treasury.
So far as could be deter
mined, the Ways and Means
Committee action would still
enable the Federal Government
to make about $1.8 billion in
ALLEGATIONS to States this year
for the 1861 fiscal year and
about $2.2 billion for the next
year. This would neceSsitate
a comparatively small cutback
in the highway building pro-
gram for the coming year.