SINCLAIR REFINING CO., Chairman, Ways and Means Committee, Hon. WILBUR D. MILLS, House Office Building, Washington, D.C. DEAR SIR: As a commission marketer, an independent businessman, for Sinclair I feel strongly that further increases in motor fuel taxes will seriously affect the economy of New York State. I urge that you turn down the proposal for an increase in the Federal gas tax. Dealing directly with over 12 retail service station dealers, I know that they agree, also. I request that this letter be made a matter of record at the public hearings of July 22, 1959. Yours truly, ROBERT W. ANDREE. VOGT GAS & OIL, Dansville, N.Y., July 16, 1959. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, House Office Building, Washington, D.C. MY DEAR MR. MILLS: Relative to the proposed increase in the Federal gas tax I feel that the present 6-cent State tax and the 3-cent Federal tax is high enough, and therefore am opposed to any further tax increase. I request that this letter be made a matter of record of the hearings. Thank you. Yours very truly, CHARLES G. MAICHLE. Representative W. M. MILLS, THE CRYSTAL FLASH PETROLEUM CORP., Chairman, Ways and Means Committee, DEAR CONGRESSMAN MILLS: We are most concerned about the current recommendations for increasing the Federal gasoline tax. We, in Indiana, are definitely against any increase in taxes on gasoline, diesel fuel, and special motor fuels, whether it be temporary or permanent. We understand that Federal automotive and motor fuel taxes yielded $3,589 million for the fiscal year ending June 30, 1958, but that $1,510 million, or more than 42 percent, was diverted for nonhighway purposes. These taxes that are being diverted are more than sufficient to pay for the present Federal highway program. If, despite all of the objections that you and the members of the Ways and Means Committee are receiving, the Federal gasoline tax is imposed, then it is imperative that the bill providing for such increase should include the provisions of the Harrison bill (H.R. 101) which would change the level of imposing the gasoline tax from the time of sale by the manufacturer to the time of sale by the wholesale distributor. We sincerely believe that an increase in the Federal gasoline tax is unfair, unjust, and unneeded. Please enter this letter as part of the record at the Ways and Means Committee hearing which is to be held July 22, 1959. Thank you for your consideration and assistance. Very truly yours, FRED M. FEHSENFELD, Vice President, Hon. WILBUR MILLS, K. C. JEFFRIES OIL Co., Chairman, Ways and Means Committee, DEAR CONGRESSMAN: My complete organization and business associates are definitely opposed to any increase in Federal tax on gasoline, diesel fuel, and special motor fuels. Additional funds if needed for the highway program should come from general revenue. We feel like this is definitely an inflationary move to increase the gasoline tax as today we have evidence that the Government and business is trying to curtail the inflationary move with the position that "Big Steel" has taken today. If in spite of my objection and the objections of many others, the Federal gasoline tax is increased then it is imperative that the bill providing for such an increase include the provisions of the Harrison bill (H.R. 101) which would change the level of imposing the gasoline tax from the time of sale by the manufacturer to the time of sale by the wholesale distributor. Please have this letter included in the records of the hearing. K. C. JEFFRIES, President. Hon. WILBUR D. MILLS, Chairman, House Ways and Means Committee, DICKEY & SHAVER, INC., Wayzata, Minn., July 16, 1959. DEAR REPRESENTATIVE MILLS: I write this letter not only out of personal concern for the welfare of our own business but as an expression of the views of many members of Northwest Petroleum Association of which I am a vice president. Northwest is an organization of some 800 petroleum jobbers in Minnesota and North Dakota. It is our hope that your committee will see fit to not recommend an increase in Federal gasoline tax. An increase in the Federal tax would be a further encroachment on an area of taxation which has traditionally been a province of the various States. It would put additional costs on the already heavily taxed users of roads and we feel that a greater portion of costs of the Interstate Highway System should be borne out of general taxation on the basis that considerable import has been placed on the position of the system with respect to national security and defense. The level at which the Federal tax is assessed is a concern to us. Under present practice a jobber is billed for the tax on the invoice from his supplier and must pay the tax in order to avail himself of the 10-day cash discount provision on the invoice. This requires additional working capital on which the jobber must pay interest. Any increase in gasoline tax, regardless of the level, increases the burden of receivables except in those minority cases involving a cash sale. To many jobbers this is an extremely critical problem because very few of us are able to compete successfully against larger companies in all industries in the market for favorable interest rates on working capital The fact that gasoline is a volatile liquid and cannot be handled without product loss also adds a cost which is not presently recognized by the Federal Government. It is impossible to sell 1,000 gallons for each thousand we buy, yet we are required to pay the tax on the full thousand gallons. We feel that recognition should be taken of this and that an allowance should be provided to compensate for this problem of handling a volatile liquid. Despite all the prudence any of us are able to exercise in extending credit some credit losses are unavoidable. While we do not expect the Government to condone unwise credit practices we do feel that it should recognize unavoidable credit losses as a fact of business life and give the seller of gasoline some allowance in handling a tax which is humanly impossible to collect in its entirety. We were told about 2 years ago that the creation of the allowances which we felt were needed would create too serious a problem of mechanics within the Treasury Department. We think this is entirely beside the point and in this respect cannot resist comparison of the mechanics of handling the gasoline tax to the handling of the tax on cosmetics, jewelry, luggage, et cetera, where the tax is levied at the point of ultimate sale and the matter of collecting and reporting the tax is almost 100 percent a case of the integrity of the seller. Again, it is our hope that the Federal gasoline tax will not be increased but, in any event, we feel that we are justified in asking consideration of the various aspects of the tax which we cite above as being of concern to petroleum jobbers. It would be greatly appreciated if this letter can be included in the record of hearings on this issue. Thank you very much. C. H. SHAVER, President. JAMESTOWN, N.Y. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, House Office Building, Washington, D.C. DEAR SIR: I would like to state to you and to the public that I am emphatically opposed to the proposed increase in the Federal gasoline tax. Although I am a firm believer in taxes, providing they are properly used, in this case the money received as revenue from the extra high gas tax would not be entirely allocated for road improvements, highway needs, etc. Has there ever been a case where all the money received from gasoline tax has been put back into improvements for the motorist? Why should the motorist alone be penalized to pay taxes that are used for other purposes? Why not tax the air we breathe when over one-third of a gallon of gasoline we buy is tax, and taxes not used entirely for our benefit? Oh, yes, you boys will push this bill through with the stipulation that the tax will be canceled (if and when) as soon as there are enough funds for the Federal highway program. We've been hearing this line for years, not only from State but Federal officials-and has any tax ever been canceled? I could expound numerous reasons why I am in opposition to the proposed increase but those I have mentioned will suffice. In closing, give these comments some thought, and think not only of the large oil companies and service station operators that will be affected-but also have a heart for the little guy-the taxpayer that already is working over 1 day a week to pay your salaries so you can make decisions for us. I request that this letter be made a matter of record at your forthcoming hearings. Respectfully, JOHN W. WISE. PITTSBURGH, PA., July 17, 1959. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, House Office Building, Washington, D.C. DEAR SIR: I am definitely opposed to any increase in the gasoline tax and trust you will cooperate in doing all possible to avoid any further increase in motor fuel taxes. I also ask that this letter be made a matter of record at the hearings. RICHARD J. MURPHY. PITTSBURGH, Pa., July 17, 1959. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, DEAR SIR: I am not opposed to taxes as such, because I recognize the necessity of some form of revenue to carry on the functions of the Government. However, I am unalterably opposed to any more taxes than we are already burdened with and I am especially opposed to the proposed increase of gasoline taxes. I will appreciate your cooperation in forestalling any attempts to increase the gasoline tax and I wish this letter to be made a matter of record of the hearings on this proposed tax. Sincerely, PATRICIA CUSTER. PITTSBURGH, PA., July 17, 1959. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, DEAR SIR: I wish to express my definite opposition to any further increase of the gasoline tax. While I am fully aware of the necessity of taxes to operate the Government, I believe the time has come for a concerted effort to be made to live within the present means rather than constantly looking forward to increasing the already heavy tax burden. I would, therefore, appreciate your efforts for defeating any attempts to further increase an already heavy gasoline tax. I further wish that this letter be made a matter of record of the hearings on this proposed increase. Very truly yours, L. J. GRUENER. PITTSBURGH, PA., July 17, 1959. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, DEAR SIR: I definitely oppose any attempt to increase the gasoline tax, and will appreciate your cooperation in forestalling any attempts to increase this tax. I also understand that public hearings will be conducted by the Ways and Means Committee on the proposed gasoline tax increase. Please make this letter a matter of record of these hearings. Very truly yours, ALICE CHACNES. PITTSBURGH, PA., July 17, 1959. DEAR SIR: I definitely oppose any attempt to increase the gasoline tax, and will appreciate your cooperation in forestalling any attempts to increase this tax. I also understand that public hearings will be conducted by the Ways and Means Committee on the proposed gasoline tax increase. Please make this letter a matter of record of these hearings. Very truly yours, Mr. LEO H. IRWIN, Chief Counsel, Committee on Ways and Means, New House Office Building, Washington, D.C. IRENE H. OLLETER. OKLAHOMA CITY, OKLA., July 22, 1959. DEAR SIR: With regard to the proposed gasoline tax increase, I wish to go on record as opposed to such additional tax. According to figures that have been published, the Federal Government collects some $3 billion in gasoline taxes now, of which some $12 billion is not used for highways, but has been diverted for other uses. Should this diverted money be used for the purpose it was intended, there would be no need for additional taxes on motorists. Here in the State of Oklahoma we now pay a tax of 92 cents per gallon. An additional 11⁄2 cents would bring the total to 11 cents tax on 1 gallon of gasoline, which seems a prohibitive amount. The tax burden has become so heavy that it seems some method should be sought to relieve us of our burden, rather than attempting to make it heavier. Yours truly, (Mrs.) NILA HATCHER. VERONA, PA., July 20, 1959. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, House Office Building, Washington, D.C. DEAR SIR: I understand that the Ways and Means Committee will open public hearings on July 22 on the proposed increase in gasoline tax. I am definitely opposed to any increase in this tax and will appreciate your making this letter a matter of record of the hearings. Very truly yours, WILLIAM J. BYERS. (Whereupon, the committee adjourned at 3:08 p.m.) |