THE MOTORIST PAYS

Evening Post, Issue 52, 2 March 1935, Page 28

THE MOTORIST PAYS

TAXATION IN AMERICA

BUDGET BALANCING

According to the "Scientific. .American"'American motorists paid over 250 000,000 dollars to the Federal Government during 1933 in various motor toeTa nXore%han 500 000,000 donars to the various individual States. Altogether, it says, the' American motorist is revealed in figures compiled by the American Petroleum Institute as a 1 000 000,000 dollars' taxpayer. 'When the first motor spirit taxes were imposed in 1919 the total was only a little over 1,000,000 dollars and the funds obtained were all spent for the direct benefit of the motomt—to finance road construction. In subsequerit years the ease with which the individual States were collecting motor spirit taxes opened a huge field to the Federal Government for budget balancing, and the motorist pays. "It seems," says the journal, that those legislators who have been responsible for the steadily increasing taxation placed on the motorist are sun living in the early days of the automobile, when a car was the plaything of the idle rich and as such was a distinct luxury. The time rapidly arrived, however, when the automobile became an absolute necessity to a large proportion of the people of the country, and this condition prevails now more than ever. • "To cap the climax of the whole taxation grab, the additional burden was placed at a' time when the motorist could ill afford to increase his expenses. The result was a decided decrease in motor travel and consequently in the purchase of the taxed, items. The direct effect on the motor-car industry and those other businesses which depend on the motorist for their livelihood is perfectly plain.

"It is high time that one of two things be done: Either reduce the total amount of taxes that each motorist must pay to the various collecting agencies, or make arrangements for the money to be diverted, to channels where the motorist will get some direct benefit from his contributions. Either of these two steps would have a marked effect on industry as a whole and are therefore greatly to be desired. To throttle business in such a far-flung field as is represented by the motorcar should never be the aim of taxation."