MOUNTING BURDEN

Press, Volume LXVIII, Issue 20623, 12 August 1932, Page 6

MOUNTING BURDEN

TAXATION IN AMERICA.

BIG INCREASE THIS YEAR

Federal taxes on motor vehicles and industrial products connected with them became effective in the United States on June 21st to Jhe tune of 268,000,000 dollars, approximately one-fourth of the Budget deficit. An immediate effect of the Federal taxation, it is said, will be to increase the motorist's annual tax on his car to 49.78 dollars. The eost of cars will bo increased from 13 dollars to upwards of 200, it being anticipated that the tar will be passed on by the manufacturers, who already had cut prices to the minimum.

The specific items in the taxation and the amount each is expected to yield are: Passenger cars, 3 per cent., 32,000,000 dollars; trucks, 2 per cent., 3,000,000 dollars; parts and accessories, 2 per cent., 7,000,000 dollars; tyres, 2$ cents and tubes 4 cents per lb, 33,000,000 dollars; petrol, 1 cent per gallon. 150,000,000 dollars; imported oil (estimated), 2,000,000 dollars; lubricating oil, 4 cents per gallon, 33,000,000 dollars; ■oil transported in pipe-lines, 4 per cent, of charges, 8,000,000 dollars. Like the taxes on motor vehicles the petrol tax is one on the manufacturers, and will be paid at the refineries. ,

From 1921 to 1930 motor taxation in America increased 4} times against cars and trucks registered of only half again. The taxation in 1930 passed the thousand million mark, and in 1931 was up still another 26,000,000 dollars. The Petrol Taxes. In 1931 the petrol taxes (they were imposed only by the individual States and local authorities) reached a total of 536,397,458 dollars, 42,500,000 more than the previous year, despite 731,178 less registrations of vehicles. The petrol taxation varied among the States—from 2 dollars to 7 dollars per gallon. The entry of the Federal Government into petrol taxation has come as a blow to the petroleum industry, which opposed it vigorously. In some sections of the country motorists will pay this one cent per gallon to the Federal Government, 5 cents to the State Government, 3 cents to the county, and 2 cents to the local authority, a total of 11 cents a gallon, mou, it is pointed out, than either-the* wholesale or retail price of the commodity. It means, too, that revenue from petrol taxation, originally conceived and levied for roading, will be diverted to general purposes, and with precedent established by the Federal Government. People are wondering if the motor and petroleum industries can possibly bear the continued drain on their resources. New ear cales and old car registrations ere already down this year on last year despite the heavy drop that last year witnessed.

The industry is hoping for the best. It icels that a 14 per cent, increase in the annual tax bill of the nation's car owners, bringing it to more than 1,250,000,000 dollars a year, cannot faU to have a crippling effect. In spite of tins, however, if the balancing of the Budget restores confidence sufficiently to release consumer purchasing power the result is likely to be compensating to some extent. °

Have you anything to sell—Do you wish to buy? If so a small advertisement in the classified section of The Pbesß will be all you need. 12 words Is, three insertions 2s 6d. —6