Proposed Automobile Taxes.

The New York Times
2 January 1916

To the Editor of The New York Times:

It has beensuggested that a tax of 50 cents for each horse power of the engine be imposed on automobiles by the Federal Goverment. If this tax is imposed the car owner will be compelled to pay no less than three direct taxes on one article: (1) The registration fee, which in New Jersey is $15 for 30 H. P. cars and over: (2) the tax on personal property: (3) the horse-power tax. If a tax of 1 cent a gallon is imposed on gasoline, that will be a fourth tax on the car owner, while the $4 license fee to drive cars of 30 H. P. and over is practically a fifth tax.

On a 30 H. P. car that might work out as follows: (1) $15 annual registation fee; (2) apprating the car at $600, whith a tax rate of $2 per hundred on personal property, $12; (3) Federal horse-power tax of 50 cents per horse power, $15; (4) $4 for driver's license for 30 H. P. and over; total: $46 in fees for the privilege of owning and driving a 30 H. P. car. Add to that 1 cent a gallon for gasoline and other expenses.

On a 22 H. P. car (appraising it at $200) the taxes per annum would be about $25.50. Is it fair to impose three direct taxes on one article. Not to peak of two indirect taxes? I maintain that that would be unjust discrimination.

East Orange, N. J., Dec. 80, 1915.