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Show i WHAT IT COSTS TO GOVERN US By PROF. M. H. HUNTER .Dept. of Economics, University of Illinois. The Tax on Automobiles p0 YOD realize that, in most states. In owning an automobile you pay three distinct taxes In addition to the tax you may pay upon gasoline? The first Is thai levied by the federal government gov-ernment of 3 per cent upon the factory fac-tory price of the car. In most states automobiles are considered con-sidered personal property fcr purposes of taxation. The local assessor Is expected ex-pected to list them at their selling" value. In many Instances few automobiles automo-biles are listed and the values placed upon those listed Indicate an unbelievable unbeliev-able depreciation. The most Important levy based directly di-rectly upon the automobile is the license li-cense fee demanded before Its operation opera-tion becomes legal. This Is found In each of the 48 states, but there Is no semblance of uniformity In the method of making the levy nor in the amount exacted. The total receipts from this source In 1026 were about $2S8.282,00O. In the 48 states at least seventeen different bases are used in determining determin-ing the license charge. The most Important Im-portant basis for pleasure cars is horse power, although other bases used by some states are value of car; weight; horse power and weight; factory fac-tory list value and weight; value, weight and horse power. The size of the license payment varies var-ies greatly from state to state. With the Introduction of the gasoline tax, some states reduced the registration license to a nominal amount sufficient to cover administrative costs and road police, while any net revenue from the owner of an automobile was to come from the gasoline tax. From this small amount the annual license ranges to almost SI 00. The license charge upon trucks Is usually higher titan upon pleasure cars, and the basis of levy la frequently somewhat different. The bases of levy most used are carrying capacity; horse pow er and tonnage ; weight ; total weight of car and load; value, norse power and carrying capacity; tire width; horse power and weight In many states the rules applying to pleasure cars also are used In determining deter-mining the license payments on trucks. The payments required by the different states vary from a few dollars to as much as SS00 a year. In licensing busses, the seating capacity ca-pacity is frequently taken Into consideration consid-eration In arriving at the amount. This Is frequently combined with other factors fac-tors such as mileage, horse power, weight and gross receipts. The charge varies greatly In different states. Charges for similar services should be as nearly uniform as possible in the different states, but In the licenses levied upon automobiles, trucks and busses this is far from being realized. The Cost of Highways y HE annual expenditure Is now -1 well over $1 .fiOO.OOO for construction construc-tion and maintenance of roads and streets. Of this, well over Sl.240.0O0 Is spent on rural roads and Highways. Expenditures for highways appear in the budgets of federal, state and municipal governments. Only for education ed-ucation and protection Is more public money spent. No other public expenditure shows sach n rapid Increase In recent years as that for highways. The present total to-tal Is about 15 rimes hs great as It was 25 years ago. The method of financing highway construction has changed greatlj Twenty-five years ago almost the en tire eos-t was borne by the counties and townships. Today the part of the cost borne by the state and federal governments almost equals (hat of the local units. Twenty-live years ago ii most one-fourth of the entire expendl tore was In the form of labor require-) from indi iduals, while the remainder came from properly taxes. Now the item of labor has practically disap peared. while receipts from motor ve hide licenses, gasoline ta::es. anil borrowing, bor-rowing, iniike up more of Ihe total expenditures for highways than do the taxes from property. Thai consider able use Is made of borrowing is In dlcaled by the fact about l.ri per cent of the total expenditure goes for the payment of Interest on highway bonds At present about half the expendl ture for highways Is for new const rue tlon and about half for maintenance. In some states, especially In the north central states, where highway development develop-ment Is being rapidly extended, the construction costs run as high us 71) per cent of the total. In l!H(i congress first authorized fed eral aid to the states for highway con structlou. In 1 i 1 the secretary of ag riculture was- authorized to co-operate with state highway departments hi the construction of highways. Al present the annual expenditure ol the federal government In extending aid lo the s'lales foi highway const ruction Is abniii ?lDO.iioii.uoo In addition to this the federal government Is undertaking lo build a system of highways con nectcd with the national forests.. The proportion of costs home by the locality, slale. and fed nil ulq varies greatly in the dilTerenl Males. Thus In Connecticut nearly 7."i pel cent of thi! total comics from Ihe stale treasury while in Molilalia only a lit He more than per ccnl comes from this source. In some of ihi- casieru slates federal is 1 I comprises less than l per ccnl of Ihe total, while In sonic of the western stales more than one half of the total conies from thH hou'ec. - (Co l!i':l. WuHtorn NiwMtmt9 Union i |