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Story May 17, 1933

Smyrna Times

Smyrna, Kent County, Delaware

What is this article about?

In 1932, U.S. automobile owners paid an estimated $1.5 billion in federal, state, and local taxes on vehicles, gasoline, and accessories, a significant increase from prior years, funding government costs amid rising levies.

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MOTORIST HIT BY NEW TAXES

Is Contributing Heavily To Cost of State and Federal Government

PAYS TOTAL $1,500,000,000

Washington.—A heavy share of federal, state, and municipal government costs is being borne by automobile owners throughout the United States as the result of new taxes enacted during the past two years.

Revenue of more than $250,000,000 was expected to accrue to the United States government through the excise tax passed by congress at its last session and which levies on gasoline, oil, tires, and all accessories.

States and municipalities also have tapped new fountains of income by levying upon motor vehicle owners. In the 12 years from 1919 to 1931 state license and gasoline taxes alone have risen from $8.68 to $34.10 per capita, an increase of 292 per cent.

The tax bill which Mr. Car Owner in the United States paid during 1932 is estimated at the stupendous total of $1,500,000,000, this figure including the new federal tax and the state and local increases.

In license fees, gasoline taxes, municipal and personal property taxes on motor vehicles during 1931 the motorist paid a national total of $1,025,000,000.

One-tenth of the entire United States tax bill was the amount paid by motor car owners during 1931 through license fees, gasoline taxes, and personal property taxes on vehicles. The percentage is expected to be higher when the figures for 1932 are available.

From figures obtained from all parts of the country it appears that raising the tax on gasoline has been a favorite means of providing new revenue for states. In some states this levy has been pyramided to the point where the gasoline tax amounts to 11 cents a gallon.

While the old-time toll houses that once lined the nation's principal highways as a means of collecting enough money to pay for the roads and keep them in repair have passed into history, the modern gasoline filling station, according to leaders of the automotive industry, has just about taken the place of the toll house.

Gasoline filling stations today are toll collecting agencies for federal, state, and, in many cases, for county and city governments. On a basic tax of 5 cents a gallon, a light passenger car consuming one gallon of gasoline each 20 miles pays a road toll tax of $50 for every 20,000 miles.

What sub-type of article is it?

Historical Event Curiosity

What themes does it cover?

Misfortune

What keywords are associated?

Motorist Taxes Gasoline Tax Federal Excise State License Automotive Revenue Toll Equivalent

Where did it happen?

United States

Story Details

Location

United States

Event Date

1932

Story Details

Automobile owners paid $1,500,000,000 in taxes in 1932, including new federal excise taxes on gasoline, oil, tires, and accessories, plus increased state and local levies on licenses and vehicles, rising 292% per capita from 1919-1931.

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