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MORE TAXES FOR THE MOTORIST
Ail economically unsound proposal has been
made in California for an increase in the tax of gas
oline, and there are reports that similar suggestions
have been made in other Pacific Coast states.
The gasoline tax, originating on the Pacific
Coast five years ago, has proved quite contagious,
and it is now in effect in some thirty-six states. Its
alleged popularity is largely due to its apparent
ease, of collection, brought about by saddling the
work and expense upon oil companies, and to a feel
ing that the motorists who use roads should pay for
them, even though this in reality means that a de
cided minority of the people are made to pay for
public improvements which are of unquestionable
value and benefit to the whole people.
Those who propose the new California tax ig
nore this very important economic principle. In
California there is one motor-car to every 3.5 or 4
people in the state. Under this new proposal be
tween 25 per cent and 30 per cent of the people
would pay for improvements of obvious benefit to
all the rest of the people, who pay nothing. Good
roads inevitably benefit all—they increase business
in towns, they enhance property values in the coun
try or wherever they pass. For example a man may
own inaccessible property worth fifty dollars an acre.
A new state highway passes through and the land
becomes worth, possibly, one hundred dollars or
more per acre. Yet under this proposed way of
financing highway construction—a new way in Cal
ifornia and a departure from the policy which cre
ated the present splendid highway system—the for
tunate property owner pays nothing for the highway
beyond, perhaps, ten or twenty dollars a year if he
happens to own a motor-car. In California there are
no direct state taxes on individuals, other than mo
tor-vehicle taxes, the revenues from taxes on public
and private corporations. Under the proposals
which have been made, the present generation would
pay for things of benefit to future generations, again
a radical departure from the accepted theory of fi
nancing permanent public improvements of any
character.
The proposed taxes will place a new burden
upon an already heavily taxed motorist and upon
motor-vehicle operation, which is calculated to have
a bad effect upon the automobile'industry. Motor
cars are now taxed in many ways, and each addi
tional tax increases sales resistance, something to
which the motor-car dealers of the state should give
attention. The motorist’s list of taxes is formid*
able. First there is a 5 per cent Federal excise
tax on the purchase of a pleasure car, or 3 per cent
on a commercial car. There is also a 5 per cent
Federal excise tax on parts and accessories. If
the car is a vehicle for hire, there is a $10.00 Fed
eral occupational tax on vehicles carrying seven pas
sengers or less, and $20.00 if it carries more than
seven. In California there is a state registration
fee of $3.00 on all cars, while commercial cars are
taxed up to $50.00 additional, depending on weight
and character of tires. There is in California a
two-cent gasoline tax which estimates show amounts
to an average of 10.00 a year for passenger-cars
and $20.00 for trucks. Every car owner also pays
a personal property tax on assessed valuation.
There are two proposals as to gasoline tax be
ing discussed in California—one for a one-cent in
crease, making a total of three cents, and another
for a two-cent increase, making a total of four cents.
Nor is this all. It is also proposed that the regis
tration fee be increased from $3.00 to $5.00 on all
cars, and that the extra weight fees on commercial
vehicles be increased by two-thirds. The proposed
increases on passenger-ears would amount to $7.00
in one case and $12.00 additional in another, de
pending on whether the gasoline tax increase is one
of two cents. With a commercial vehicle of, say
4000 pounds weight, the increase. would be $18.66
if the tax is increased one cent per gallon, of $28.66
if the tax is increased two cents, and proportion
ately greater for heavier cars. These estimates are
based on passenger-cars using an average of 500 gal
Ions annually and on commercial cars using 1000
gallons.
These are considered conservative figured.
Until recently the gasoline tax has never been
passed upon by the people of any state. Always
state legislatures have found it a relatively easy tax
to impose and to collect. At the last election the
people of Massachusetts had opportunity to register
their opinion. A two-cent-per-gallon tax had been
passed by the ligislature. The motor car dealers of
Massachusetts thought that this addition to an al
ready large list of taxes was too much, and they
brought about a referendum. The people spoke, to
the extent of defeating the tax entirely by 270,000
votes.
There is another very important point. It is
the gross unfairness of singling out any one com
modity to carry a great load of taxation to produce
revenues for the whole people. The varying propos
als which have been made would place upon gaso
line a tax of from 23 per cent t«» more than 30 per
(ent of the wholesale price of gasoline in San Fran
cisco. Let any merchant ask himself how he would
like to have such a burden thrown upon his own
commodity. It would undoubtedly curtail con
sumption, for the higher the price of a commodity
the lower the consumption whether the commodity
be shoes, clothing, food, or what-not.
There are still more considerations of import
ance to the public; but the opposition of this Com
pany to the proposed measures is based on the ele
mental principal that it is wrong to tax a part of the
people for the benefit of the whole, and grossly un
just to single out any commodity for a very heavy
burden of taxation, and the Company intends to
place the facts before the motoring public, many of
whom are its patrons.—Standard Oil Bulletin, Dec.
DISAPPOINTING LEADERSHIP.
Senator William E. Borah, because of long ser
vice in the upper house of Congress, becomes head of
the committee on foreign affairs, succeeding the late
Henry Cabot Lodge.
But Borah is not a leader. He is as lacking
in constructive capacity as most any senator that
could be named. He is chiefly known because he
talks well and often. He has greater force as a
critic than as one who does things. He is about
the chief fly in the ointment of the country just
now because of his succeeding to that chairmanship.
Borah is opposed to the administration’s pro
gram towards Russia. He favors recognizing the
soviet governmnet, while the administration is
against that thing.
He is opposed to the world court idea. Secre
tary Hughes and President Coolidge favor the idea.
He is opposed to the administration’s plan of
funding the debt owed by foreign government.
President Coolidge wants to delay the calling
of another disarmament congress until European I
governments do something that indicates they want .
peace as a principle. Borah wants such a confer
ence right away.
Borah does not take these stands because he be
lieves they are the best. He does it because his
contrariness gets him a lot of publicity that would
not come to him as an agreeable person. He “makes
news” and the newspapers keep his name to the
front.
Fortunately there are indications the adminis
tration will go forward with its foreign policy re
gardless of the attitude of the chairman of the Sen
ate committee on foreign relations.
CRIPPLE IS EAGLE SCOUT.
Although he suffered the loss of his right foot
in an accident several years ago, George S. Conway,
jr., of Englewood, N. J., has attained the rank of
Eagle Scout, the highest honor in the Boy Scout
movement.
To those who know the severe tests to which
candidates for this rank are subjected, his accom
plishments seem almost incredible.
With his crutch he ran 50 yards in seven and
one-half seconds and cleared 3 feet 9 inches in the
running high jump. He also performer the requir
ed life-saving tests, as well as all others.
Success earned by determination and hard work
is always inspiring, but particularly so when at
tained in spite of handicaps such as that undef
which young Conway won his Eagle badge.
“The Republican outlook is exceptionally
bright, ’ ’ says Chairman Butler. We are not so
cheerful about the Republican outlook, but we must
say it is far more luminous than out Democratic
look-in, which didn’t materialize.
Concerning the reading of Senator La Follette
out of the Republican Party, the Wisconsin Senator
would appear to be in a position to say, “come out
side and put me out.”
4
Liberty
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8:00 P. M.
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