Evening star., 1961-02-28
HIGHWAYS

~NA
age passenger car owner ca.
expect to pay about 50 In Fed
eral tax per tire, compared t
about $l.60 paid now. The Ia
on the average rtuck tire woul
move up from about SO to $l(
The proposed tax increase OF
truckers license fees woulC
jump from about SIS to $25
on the average-sized semi
trailer. Diesel fuel costs woulI
be increased by 3 cents q gallon
Should Congress find his ia,
proposals unsatisfactory, thl
President, as an alternative
suggested raising the presen'
Accent gasoline tax to AZ cents
q gallon. This move alone
would provide the highway
fund with the needed 5000 mil.
lion annual income. This pro-
poSal was made by the Essen
hover administration this year
before it went out Of office.
Excises Opposed
Although the one-half-cent
gasoline tax increase would be
clearly acceptable" Mr.. Ken
nedy told Congress. 81 prefer
not to raise taxes on the gen.
eral consumer at this time, and
to emphasize instead q fairer
ALLEGATION of the burden among
those who use the highways. "
He opposes, he said, the
present law which would divert
from general funds some $500
million q year for the next
three years to the interstate
highway trust fund. These
general funds would be raised
through excise taxes on auto
mobiles, parts and accessories.
This measure was also opposed
by the Eisenhower administra-
ton.
At any rate, Mr.. Kennedy
said, one or the other Of the
two tax proposals he indorse;
should be adopted by Congress
so that the interstate program
''can so ahead as scheduled
without draining the general
revenues"
The only time regular Treas
ury funds should be used for
the highway program. he said
would be in times Of recession
He added that he believes anti
slump moves already proposed
will be sufficiently effective to
make such action unnecessary
II a later reading Of eco
nomic SignpoSts indicates other
wise, Mr.. Kennedy said. Con-
gress might want to use gen.
eral funds to repair winter road
damage in areas Of substantial
unemployment
Differences Pointed Up
Differences over financing
aspects Of the program were
pointed up in the weekly meet
ing Of congressional Democratic
leaders, with Mr.. Kennedy Just
before the message went to the
Capitol. 4t'tr 9
The legislators got q preview
Of the plan and House Speaker
Rayburn said later that many
different ideas were expressed
on how to pay for it.
Mr.. Rayburn said the diff
ferences were over whether the
money should come from gen.
eral tax funds or from the
gasoline levy.
The proposed increase In
taxes on truck users ran into
prompt opposition from the
American Trucking Associa-
tions. In q statement, the or
ganization called the plan q
severe disappointment to the
several million people who de-
rive q livelihood from motor
truck operations. and added:
Although suggested as an
alternative to taxes on con-
sumers. this tax proposal actu-
ally falls directly on the con-
sumer since trucks haul every
thing Americans eat, use and
wear.
THE cost Of food, clothing
and every type Of industrial
and commercial product will
be affected directly by them. I"
T. Increases Outlined
Mr.. h. :nedy's tax program
includes the following in
creases:
On tires. an increase from 8
cents a pound to 10 cents; in
ner tubes, up from 8 cents q
pound to 10 cents; rubber used
in retreading tires, up from 8
cents a pound to 10 cents,
The diesel fuel tax would
move from 4 cents q gallon to
2 cents.
The annual license fee for
trucks weighing over $4,000
pounds when loaded would
jump from $1.50 per 1000
pounds to S..
practically all Of the in
crease" Mr.. Kennedy noted,
would come from the heavier
trucks that use diesel fuel. &.
This is only fair. Indeed, tech
nical experts in the Bureau Of
Public Roads advise me that
even this increase would not
charge heavy trucks their fair
share Of the cost Of this pro-
gram"
Opposed to Delay or Cut
II am wholly opposed to
either stretching out or cutting
back our highway program, and
urge the Congress not to rely on
either solution" the President
stated. Either step would be
unwise at a time when our
slump-ridden economy needs
greater. not less construction