3. On our present market here in Fargo, for example, 40 percent of what you pay for a gallon of gas is tax. Certainly this product is already bearing more than its share of the tax burden. 4. When gasoline was first taxed many years ago, it was a luxury item. As we all realize, gasoline and diesel fuel are a necessity to our present way of life. Thus an increase in the tax on these items is bound to create many hardships on persons not able to bear these hardships. I certainly am against any curtailment of the Federal roadbuilding program. I feel that the roadbuilding program can be carried out without curtailment by financing it in the following manner. Channel the above-mentioned revenue (on gasoline, diesel fuel, automobiles, and tires) into the roadbuilding program. Reduce general expenditures by curtailing such paternalistic and socialistic programs as Federal housing, urban renewal, our present farm program, and the many other programs of this type. I am writing a letter similar to this to Quentin Burdick, with copies to Senators Young and Langer. I would appreciate it very much that this letter be included in the records of the hearing on this issue. With best personal regards, I am, Sincerely yours, R. H. TALLMAN. HOUSE OF REPRESENTATIVES, Hon. WILBUR D. MILLS, Chairman, Committee on Ways and Means, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: Enclosed is self-explanatory letter received from Mr. N. R. Paschal, containing a request that the letter be included in the record of hearings on the subject of the proposed increase in tax on gasoline. Your consideration of his request will be appreciated. Thanking you, I am, Sincerely yours, JAMIE L. WHITTEN, Hon. JAMIE WHITTEN, House of Representatives, Washington, D.C. GRENADA, MIiss., July 18, 1959. DEAR SIR: This letter comes to you with reference to the proposed increase in Federal gasoline and diesel taxes. Those who propose this legislation indicate that this is necessary for the financing of the deficit in the Federal highway program. Anything that proposes any new taxes on a product that is so heavily laden already, could not meet with the approval of the people who handle these commodities. In the first place, Mississippi has 7 cents State tax on gasoline, 3 cents Federal tax, 3 percent State sales tax, plus one-half of 1 percent municipal tax in the city of Grenada. Mississippi already has the highest tax on gasoline of any State in the Union. Yet, on July 16, 1959, there is a writeup in the Commercial Appeal headlined Jackson, Miss., "Mississippi Sells Additional Bonds-Gasoline Revenue Issue Goes for $5 Million. The new bond issue bring to $73,202,000 bonds outstanding. Under a new statute the former $60 million ceiling on outstanding gasoline revenue bonds has been upped to $85 million." In the discussion before Congress they mentioned about how many men will be idled by stopping the Federal highway program. Let me state right here, that if there are any additional taxes levied on this product there will be more service stations closed on account of this fact which means there will be more unemployed by the oil industry than there is by the stopping of the highway program. There are four service stations in the city of Grenada that represent an investment of $100,000 that are now closed. There are more service stations in the city of Grenada that are now operated by the oil distributors and commissioned agents than there has been since the end of World War II. This has been brought about by the fact that rentals on service stations have been increased by the inflationary costs of producing service stations, with increased taxation, employment taxes, and increased social security taxes, property taxes, etc., whereas the margin of profit on a gallon of gasoline has actually decreased during the past 5 years. A friend of mine recently made a vacation trip to Michigan and he told me that on his visit to Detroit it looked as if half the service stations were closed. Another point I would like for you to take time to read-about the amount of money going into the Federal till-that during the past fiscal year the Federal automotive and motol fuel taxes yielded $3,589 million, ending June 30, 1958. Of this amount $1,510 million, or 42.1 percent, was diverted for nonhighway purposes. These taxes are more than sufficient to pay for the present Federal highway system. The fact is, Jamie, in our opinion the Government is actually leading the parade in inflationary trends as well as performance. Another point I wish to mention as a final matter is that in our own State every newspaper is continuously bragging about the increased revenue from every type of tax that they have learned how to levy. This brings about a misconception of Mississippi's prosperity. Many people, however, will tell you that Mississippi is a poor State. Mississippi is a rich State; it is just the people that are poor. And it has been proven through the last quarter century that if a tax ever goes on, it never comes off. There must be a stopping point on this ever-increasing burden or else the Government will be taking over the operation of the few items that they now do not control. I am appreciative of the time you have taken to read this letter and would thank you if it could be included in the record of the hearings of this issue. Yours very truly, N. R. PASCHAL. HOUSE OF REPRESENTATIVES, Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, DEAR WILBUR: Enclosed is a copy of a telegram I received today from the Yellow Cab Co., and the Badger Cab Co., of Madison, Wis. The taxi companies request a specific exemption from any proposed increase in the gasoline tax because they say they already pay a disproportionate share of the tax. I would appreciate your making their views a part of the hearing record on this matter. With kindest personal regards, Sincerely, ROBERT W. KASTENMEIER, Hon. ROBERT W. KASTEN MEIER, House of Representatives, Washington, D.C. MADISON, WIS. DEAR SIR: We request specific exemption in proposed legislation increasing gas taxes on the ground that as primarily nonhighway users we already pay a disproportionate share of the present tax. Other nonhighway users now have such exemption we have not. Because of local licensing and rate-setting regulations we have no way of passing on this adidtional expense. We therefore respectfully request your support in presenting our request. Respectfully yours, Hon. R. WALTER RIEHLMAN, House Office Building, Washington, D.C. YELLOW CAB Co. THE ATLANTIC REFINING Co., MY DEAR MR. RIEHLMAN: As you can see from this letterhead, I am an employee of the oil industry and as such I am becoming increasingly alarmed over "luxury" taxes being imposed upon one of our principal "necessities”— gasoline. As you know, the gasoline tax presently in New York State amounts to ap proximately 30 percent of the retail price. Isn't it about time that gasoline be considered a necessity and tax it as a necessity rather than a luxury? As one of your constituents, I urge you to vote against any further increase in gasoline taxes, and, in addition, to make this letter a matter of record at the hearings to be conducted by the Ways and Means Committee of the U.S. Congress. Cordially yours, Representative JOHN C. Watts, R. N. HEISLER, Manager, Direct Marketing. LOUISVILLE AUTOMOBILE CLUB, INC., DEAR MR. WATTS: At a meeting of the executive committee of this club held yesterday, it was voted that our position be restated as being opposed to any increase in Federal gasoline tax. Further, that we support the AAA policy of favoring the issuance of short-term revenue bonds to meet the deficits in the highway trust fund for the fiscal years 1961 and 1962. The membership of the Louisville Automobile Club, as of this date, totals 54,206, and our board feels that its policy is in accord with the sentiment of the great majority of these members. It is not necessary to remind you that the gasoline tax as now imposed, Federal and State, represents about 48 percent of the cost of the commodity at the pump in Kentucky. There is danger that an additional tax on gasoline would reach the point of diminishing returns and further affect the economy of the entire State in the curtailment of necessary transportation. Our highway commissioner, Ward Oates, said recently in a public statement: "I think the 12-cent tax per gallon or any tax on gasoline ought to be left to the States." In this connection, we must remind you of the fact that in the Commonwealth of Kentucky there are between 60,000 and 70,000 miles of public roads. The obligation rests largely upon the State authorities to improve and maintain the bulk of that mileage, and the source of revenue to the highway department does largely come from the present 7-cent State tax which is now excessive compared to a 6-cent State tax on the national average. In Kentucky an amendment to the constitution passed several years ago by a vote of the people does safeguard these funds for the purpose for which they are levied; namely, the improvement of highways. We urge that you stand firmly against any increase in Federal gas tax levies. As a member of the House Ways and Means Committee, I would appreciate it if you would file this letter as a form of a brief with the committee. Very truly yours, EUGENE STUART, Secretary. HOUSE OF REPRESENTATIVES, Washington, D.C., July 15, 1959. Hon. WILBUR MILLS, Chairman, House Committee on Ways and Means, DEAR CHAIRMAN MILLS: I am taking the liberty of enclosing a telegram received from Mr. Clive R. Lane, manager of the Automobile Club of Kansas, voicing the opposition of 20,000 members of that organization to an increase in the Federal tax on gasoline. I would appreciate your making this communication a part of the hearing record. This correspondence is in further evidence of the feelings of the people of the State of Kansas in regard to the proposed increase. I also would like to go on record as being opposed to the proposed 11⁄2-cent increase in the Federal tax on gasoline. Your cooperation is appreciated, and with cordial wishes, I am, Sincerely yours, J. FLOYD BREEDING, Member of Congress. Representative J. FLOYD BREEDING, House Office Building, Washington, D.C.: TOPEKA, KANS., July 12, 1995. Twenty thousand Kansas AAA members are opposed to further increase in Federal gasoline tax, such taxes now adding 42 percent to retail price. The Automobile Club of Kansas believes it unfair for motorists to be saddled with additional tax burden. Our members support short-term revenue-bond finance plan. Senate Joint Resolution 109 of June 16, 1959, introduced by Senator Case, provides for type of interim short-term financing. We feel it represents most feasible method yet advanced to solve dilemma on an interim basis and keep highway program on schedule without at this time either adding to Federal deficit or raising highway users' tax burden. be given your most careful consideration. efforts in this important matter. Hon. WILBUR D. MILLS, We respectfully urge this proposal Our members will appreciate your AUTOMOBILE CLUB OF KANSAS, HOUSE OF REPRESENTATIVES, Chairman, House Committee on Ways and Means, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: It would be greatly appreciated if you could have the attached copy of a telegram made a part of the printed record on the subject of financing the Highway Trust Fund. Thanking you and with kindest regards, I am Sincerely yours, IRIS BLITCH, Member of Congress. OCILLA, GA. Hon. IRIS BLITCH, House of Representatives, Washington, D.C.: Please oppose any form of increase in the Federal tax on gasoline and diesel fuels. Also, work diligently for favorable action on H.R. 101, H.R. 3196, and H.R. 5116. Include this wire in the record of the hearings on this issue. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, House of Representatives, Washington, D.C. TANKERSLEY-SHIVER OIL CO., INC., HOUSE OF REPRESENTATIVES, Washington, D.C., July 28, 1959. DEAR MR. CHAIRMAN: Attached hereto you will find a letter I received from Mr. E. P. Godwin, Jr., Godwin Oil Co., Wilmington, N. C., concerning the proposed increase in the Federal gasoline tax. I would appreciate your placing Mr. Godwin's letter in the record of the committee hearings on this subject. Most sincerely, ALTON LENNON. GODWIN OIL CO., Wilmington, N.C., July 23, 1959. Hon. ALTON A. LENNON, DEAR ALTON: Hearings started July 22 on ways and means of financing the deficit in the Federal highway program. I feel that gasoline should not be taxed further to finance this program. In North Carolina we already have 104 cents per gallon tax on gasoline which represents approximately 40 percent of the wholesale cost. I would like for you to register my protest against further taxation of gasoline for any purpose. If it should become necessary to place a small increase on gasoline please include in the legislative act provisions that would provide the change of level of imposing the gasoline tax from the time of sale by the manufacturer to the time of sale by the wholesale distributor (I am a wholesale distributor) as provided in H.R. 101, the Harrison bill. This feature would provide a small measure of relief capitalwise for small business like myself in that we would be able to pay the tax to the Federal Government after we sell and collect for the gasoline rather than pay it direct to the manufacturer when we actually receive it and have our money tied up in the tax while it is in our storage and the manufacturer who is our supplier uses this money for himself before he has to turn it over to the Federal Government. Any further increase in gasoline taxes would require additional capital and place a further burden on small distributorslike myself unless some relief was provided as asked for in H.R. 101. I would like for you to include this letter in the record of the hearings on the bill and also keep me informed of any new developments in regard to the bill. Sincerely yours, E. P. GODWIN, Jr. HOUSE OF REPRESENTATIVES, Hon. WILBUR D. MILLS, Chairman, Committee on Ways and Means, Washington, D.C. DEAR MR. CHAIRMAN: Attached is a letter I have received from my constituent, Mr. R. M. Cartwright, of Pharr, Tex., protesting any increases in the Federal tax on gasoline and diesel fuel. It is respectfully requested that Mr. Cartwright's letter be considered in connection with the hearings on this legislation, and if possible, that it be made a part of the hearings. Thank you for any consideration you may give my request, and with kindest personal regards, I am Sincerely, JOE M. KILGORE. CARTWRIGHT OIL Co., Hon. JOE M. KILGORE, Congressman, 15th District, Capitol Building, Washington, D.C. DEAR JOE: I am writing you about the proposed increased amount of the Federal gasoline and diesel fuel tax. I understand that this hearing is to come up on July 22. I want you to know that I am against this increase, and so are the members of the Texas Oil Jobbers Association. I feel that there is too much of the present tax on gasoline being diverted at the present time. I am not in favor of an increase of a temporary nature. It seems that once it's on it's hard to get it removed. Should there be no other way but to increase the tax on fuel, then I would like to see the bill to change the level of paying the gasoline tax from the time of sale by the manufacturer to the time of sale by the wholesale distributor. This is bill H.R. 101 by Harrison, of Virginia. I would like for my letter to be included in the hearings on this issue and made a part of the record of such hearings. Best regards. Your friend, R. M. CARTWRIGHT, Owner. HOUSE OF REPRESENTATIVES, Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: Mr. John F. Martin, of John F. Martin & Sons, Mount Vernon, Wash., has requested me to submit the enclosed letter to you in order that it may be included in the record of hearings your committee holds on the Federal tax on gasoline and diesel fuels issue. Sincerely yours, JACK WESTLAND, |